Colorado State Income Tax Rate. 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 colorado income tax has one tax bracket, with a maximum marginal income tax of 4.63% as of 2021.

States with flat tax rates.

The annual deduction based on number of exemptions claimed has been replaced with a fixed the single and married income tax withholdings has been replaced with a flat 4.63 percent tax on taxable wages. For the last 20 years, the rate has been flat at 4.63 percent. State tax returns are due on the 15th day of the fourth month after the. The tax cut is also expected to attract more employers to the state, bringing in more revenue. More on colorado taxes can be found in the tabbed pages below. If you want to simplify payroll tax calculations, you can download ezpaycheck payroll software, which can calculate federal tax, state tax, medicare tax, social security tax and other taxes for you. Federal taxable income plus (+) any state income tax included in federal itemized deductions. This local income tax applies to people who live or work in the locality and in addition to federal and state income taxes. State tax changes for 2021. Ironically, polis campaigned against refunds and of course the tax cut does impact the state budget. Nonresidents of colorado that earn income from a colorado source, must file a colorado state income tax return for the income earned.