Tool | August 2016

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, "sin" products, property, and more -- across the U.S.

Colorado

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The Bottom Line
Map of Colorado

Tax-Friendly

The Centennial State has a flat tax: If you have federal taxable income, the rate is 4.63%. Property taxes are quite low, though sales taxes take a bite.

Sales Tax

2.9% state levy. Localities can add as much as 8%, and the average combined rate is 7.52%, according to the Tax Foundation.

Income Tax Range

All Colorado residents who have federal taxable income pay a flat rate of 4.63%. Taxpayers are also subject to a state alternative minimum tax.

See Kiplinger.com’s Retiree Tax Map to learn how Colorado taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.22 per gallon.
Diesel: $0.21 per gallon.

Property Taxes

The median property tax on Colorado's median home value of $255,200 is $1,420.

See Kiplinger.com’s Retiree Tax Mapfor details on tax breaks for seniors in Colorado.

Vehicle Taxes

An "ownership tax" is assessed on the original taxable value and year of service. Original taxable value is 85% of the sticker price. Rates are set at the county level.

Sin Taxes

Beer: $0.08 per gallon
Wine: $0.32 per gallon
Liquor: $2.28 per gallon

Cigarettes: $0.84 per pack
All other tobacco products: 40% of the manufacturer’s price
Marijuana: For retail purchases, 10% state retail marijuana sales tax and the 15% state retail marijuana excise tax rates are imposed, plus state and local sales taxes.
For medical marijuana, only state and local sales taxes are applied.

Travel Taxes

Hotel: There is no statewide lodging tax, but localities can charge their own. Denver’s is 10.75%. Sales tax is also due.

Rental cars: The state levies a $2 per day rental fee. Localities can charge taxes as well; Denver’s is 7.25%. Sales tax is also due.

Taxes On Wireless Service

10.8%

Inheritance and Estate Taxes

There is no inheritance tax or estate tax.

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