There are eight other states with a flat income tax. Colorado has a flat income tax of 4.63%, meaning everyone should theoretically pay the same rate regardless of their income. This means that these brackets applied to all income earned in 2012, and the tax return that uses these tax rates was due in April 2013. Tax Year 2016 Tax Rates by Income and by Filing Status. Direct Deposit Refunds. Colorado State Personal Income Tax Rates and Thresholds in 2021; $10,000,000,000,000,000.00 - and above: 4.55% (adsbygoogle = window.adsbygoogle || []).push({}); The Colorado Department of Revenue is responsible for publishing the latest Colorado State Tax Tables each year as part of its duty to efficiently and effectively administer the revenue laws in Colorado. The Colorado tax tables here contain the various elements that are used in the Colorado Tax Calculators, Colorado Salary Calculators and Colorado Tax Guides on iCalculator which are designed for quick comparison of salaries and the calculation of withholdings for typical employees and employers. Tax rates and thresholds are typically reviewed and published annually in the year proceeding the new tax year. Higher income earners may be required to pay the alternative minimum tax (AMT) in addition to the income tax. For more detailed information regarding federal income taxes, see IRS Publication 17 and IRS Publication 505. For federal taxes, lottery winnings are taxed according to the federal tax brackets. Estimated payments include income for self-employed individuals, as well as income from dividends, interest, capital gains, rent, and royalties. Table of Contents. As of tax year 2015, seven states have a flat tax, and 35 states and the District of Columbia have a graduated income tax. Policy that changes federal taxable income will also change Colorado taxable income. Who Must File? The number of tax brackets range between 2 and 12 across states with graduated tax rates. Colorado general construction employers: 1.7% for 2020. To calculate the Colorado income tax, a “flat” tax rate of 4.63 percent is applied to federal taxable income after adjusting for state additions and subtractions, the largest and most common of which are listed below. You can check the status of your return online 24/7. Colorado Income Taxes The state income tax in Colorado is assessed at a flat rate of 4.63%, which means that everyone in Colorado pays that same rate, regardless of their income level. The five states with the highest average local sales tax rates are Alabama (5.22 percent), Louisiana (5.07 percent), Colorado (4.75 percent), New York (4.52 percent), and Oklahoma (4.44 percent). Where's My Refund? For withholding, compensation for employment and earnings from certain other income sources (including pensions, bonuses, commissions, and gambling winnings) are withheld from the employee’s paycheck by his or her employer. The Centennial State has a flat income tax system where the income taxes are relatively low compared to the rest of the country. The tables for tax year 2016 are provided below. Across the states, flat tax rates range between 3.07 percent and 5.75 percent, while marginal tax rates among states with graduated rates range from zero for the lowest income brackets to between 3.02 percent and 13.3 percent for the highest income brackets. In 1964, however, Colorado's income tax base became more closely aligned with the federal tax base The IRS publishes taxable rate tables each year, which detail how much is owed per filer based on the filer’s taxable income and status (single, married filing jointly, married filing separate, and head of household). Both Colorado's tax brackets and the associated tax rates … Colorado new employer rate (non-construction): 1.7% for 2020. We also provide State Tax Tables for each US State with supporting tax calculators and finance calculators tailored for each state. Individual income tax revenue is subject to the TABOR Amendment’s limitations on state revenue and spending. Colorado has a single tax bracket on individual income, with a top rate of 4.63 percent, the study by policy analyst Morgan Scarboro said. This website requires javascript to run optimally on computers, mobile devices, and screen readers. 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