Colorado Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Colorado in 2026, with political context.
No
No Income Tax
4.4% (flat)
Income Tax Rate
#39
Tax Burden Rank (1=highest)
#38
Property Tax Rank (1=highest)
Tax Policy Overview
Colorado has a flat income tax rate and was reduced from 4.55% to 4.4% via voter initiative. The state has a low state sales tax but local additions can be significant. TABOR (Taxpayer Bill of Rights) limits government revenue growth, a unique constitutional provision.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 4.4% (flat) |
| No Income Tax | No |
| Sales Tax | 2.9% (+local up to 11.2%) |
| No Sales Tax | No |
| Corporate Tax | 4.4% |
| Property Tax Rank | #38 nationally (1=highest) |
| Overall Tax Burden Rank | #39 nationally (1=highest) |
Political Context
TABOR is Colorado’s most distinctive tax policy — it requires voter approval for all tax increases and mandates refunds when revenue exceeds growth limits. Democrats have chafed under TABOR constraints while Republicans celebrate it as a fundamental limit on government growth. TABOR has been a national model for conservatives.