Colorado tax burden — broken down.
Colorado’s combined tax burden (income + property + sales) lands at 7.81% on our composite — ranking #41 of 51 jurisdictions. The top marginal individual income tax rate is 4.40%.
Colorado burden, broken into 3 components
| Component | Colorado rate | National median |
|---|---|---|
| Top marginal income | 4.40% | ~5.30% |
| Effective property | 0.51% | ~1.07% |
| State sales tax | 2.90% | ~5.50% |
| Combined composite | 7.81% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Colorado
Colorado taxes most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are taxed by Colorado. Federal taxation of these income sources is unchanged regardless of state.
How Colorado compares
Of all 51 US jurisdictions ranked by combined burden composite, Colorado sits at #41. That puts Colorado in the bottom 10 lowest-burden states — high-earners frequently move here from CA/NY for the income-tax savings, even when factoring property/sales tradeoffs. For the live cross-state heat map, see the interactive tax burden map.
Colorado metros — local tax overlay
State rates are uniform across Colorado— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
- Denverproperty 0.55% · pop 2.9Mmedian $85,200 →
- Colorado Springsproperty 0.55% · pop 0.8Mmedian $71,200 →
- Fort Collinsproperty 0.55% · pop 0.4Mmedian $78,600 →
- Boulderproperty 0.60% · pop 0.1Mmedian $82,400 →
- Auroraproperty 0.60% · pop 0.4Mmedian $68,500 →
- Thorntonproperty 0.60% · pop 0.1Mmedian $80,200 →
- Westminsterproperty 0.60% · pop 0.1Mmedian $78,800 →
- Lakewoodproperty 0.60% · pop 0.2Mmedian $72,500 →
- Puebloproperty 0.60% · pop 0.2Mmedian $45,800 →
More Colorado metros coming as we expand city coverage.
Colorado tax — common questions
What is the Colorado top marginal income tax rate in 2025?
Colorado's top marginal individual income tax rate is 4.40% on the highest bracket.
What is the Colorado effective property tax rate?
Colorado's statewide effective property tax rate is 0.51% of home value (annual). On a $400,000 home that's roughly $2,040/yr. Local variation can be ±0.5pp.
Does Colorado tax retirement income or Social Security?
Colorado taxes most retirement income, and taxes Social Security benefits.
Are there any Colorado-specific tax quirks I should know about?
Colorado has a flat 4.4% income tax (TABOR-mandated refunds occasionally drop the effective rate below this) and uniquely refunds budget surpluses to taxpayers via the TABOR mechanism — recent refunds $750–$1,600/person.
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.