Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S. Go to the Kiplinger Tax Map Colorado Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line 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, but sales taxes take a bite. Sales Tax 2.9% state levy. Localities can add as much as 8.30%, and the average combined rate is 7.63%, 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. Effective tax rate: 4.62% for single filers, 4.74% for joint filers. Motor Fuel Taxes Gasoline: $0.2200 per gallon. Diesel: $0.2100 per gallon. Property Taxes In Colorado, residents pay an average of $607 in taxes per $100,000 of assessed home value. 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 Cigarettes: $0.84 per pack; Aspen adds $3.10.All other tobacco products: 40% of the manufacturer’s priceBeer: $0.08 per gallonWine: $0.32 per gallonLiquor: $2.28 per gallonMarijuana: For retail purchases, 15% state retail marijuana sales tax and 15% excise tax are imposed, plus state and local sales taxes.For medical marijuana, only state and local sales taxes are applied. Taxes On Wireless Service 12.34% Inheritance and Estate Taxes None. About our methodology