Colorado Paycheck Calculator

Quick TL;DR

• State income tax: Flat 4.4% (Colorado).
• Local wage taxes: None statewide; select cities (e.g., Denver) charge a small monthly head tax (employee portion only a few dollars).
• Statewide sales tax: 2.9% base; common combined rates land ~7%–9.5% depending on city/county (home-rule cities vary).
• Average take-home (Single, monthly, typical assumptions):
  • $50k salary: ≈ $3,450–$3,550/mo
  • $100k salary: ≈ $6,050–$6,200/mo
• Jump to: How Colorado taxes your paycheck • Take-home pay examples • Withholding & W-4/A-4 tips • Minimum wage & overtime • Sales tax snapshot • Employer corner • FAQs • Try the Colorado paycheck calculator

How Colorado taxes your paycheck

Federal vs. Colorado income tax (2025–26)

Your pay is first reduced by the federal standard deduction, then taxed under the seven federal brackets (10%–37%). Colorado then applies a flat 4.4% rate to your Colorado taxable income. Because it’s flat, there are no state brackets to climb as your income rises. Colorado does not use a state SDI tax.

FICA payroll taxes

• Social Security: 6.2% on wages up to the annual wage base (resets each year).
• Medicare: 1.45% on all wages, plus 0.9% Additional Medicare on high wages (employee-only).
  Employers match Social Security and the base 1.45% Medicare; the 0.9% add-on is not matched.

Colorado FAMLI premium (Paid Family & Medical Leave)

Colorado withholds a FAMLI premium from employee wages (generally 0.45% employee share, up to the Social Security wage base). Employers typically contribute 0.45% as well (some choose to pay more of the employee share as a perk). You’ll see this as a separate line on your pay stub; it slightly lowers take-home, like SDI does in other states.

Local/city add-ons (head taxes)

Colorado has no local income tax on wages, but a few front-range cities levy a small flat “occupational/head tax.”

• Denver: a modest employee monthly amount (and an employer share) when you work in Denver and earn above a low monthly threshold.
• Several neighboring home-rule cities have similar nominal monthly amounts.
  These are fixed dollar charges, not percentages; they have minor impact on most paychecks but are worth noting if you work inside those city limits.

Credits & adjustments that affect take-home

• Federal: Child Tax Credit, education credits, saver’s credit, etc.
• Paycheck adjustments: pre-tax 401(k), HSA/FSA, commuter benefits reduce taxable wages; Roth 401(k) does not reduce current taxes.
• Colorado: standard subtractions/credits may apply when you file; your withholding won’t automatically reflect all of them unless you adjust forms or estimates.

Take-home pay examples (Single filer, paid monthly)

Assumptions: Federal rules for the year; Colorado flat 4.4%; FICA; FAMLI employee 0.45% (to the SS wage base); no pre-tax benefits (401(k)/HSA/FSA), no itemizing/credits; no local head tax included (see note). These are planning estimates for 2025–26; benefits, bonuses, and allowances change results.

Notes:

• If you work in Denver (or another head-tax city), subtract the employee monthly head tax (a few dollars), and remember your employer also pays a separate employer portion (not shown here).
• Once your wages exceed the annual Social Security cap, the 6.2% stops for the rest of the year, increasing your net; Medicare continues (and +0.9% for high earners).
• Pre-tax benefits can materially raise your take-home by lowering taxable wages.

Withholding & W-4/A-4 tips for Colorado

• Step 1 — Federal W-4. Complete filing status and dependents; use the multi-job step if you (or a spouse) have more than one job. Add a small fixed extra per paycheck if you also have 1099 side income.
• Step 2 — Colorado DR 0004 (A-4 equivalent). Colorado uses its own state withholding certificate. Provide it at hire and whenever your situation changes (marriage, new dependents, second job, big raise, or large pre-tax elections).
• Step 3 — Plan for supplemental pay. For bonuses/commissions, payroll may apply a flat supplemental method or your usual state rate calculation. If a bonus is large, consider a one-time extra withholding on that paycheck to avoid a balance due.
• Step 4 — Use pre-tax benefits. Traditional 401(k), HSA/FSA, and Section 125 benefits reduce federal and state taxable wages; Roth 401(k) does not, but can help long-term.
• Step 5 — Avoid under-withholding. Target safe-harbor rules (e.g., paying in at least last year’s total or ~90% of this year’s projected tax). Adjust your DR 0004 and W-4 early if your income jumps.
• Step 6 — Check FAMLI treatment. Your employer may pay part of the FAMLI employee share; if they don’t, the typical 0.45% employee deduction applies. This is separate from state income tax.

Minimum wage & overtime basics (2025–26)

• Statewide minimum wage: Colorado’s minimum wage is indexed annually for inflation and resets on January 1. Expect the 2026 figure to adjust from the prior year.
• Local minimums: Denver and some home-rule cities set higher local minimum wages each January; if you work within those city limits, the higher local rate applies.
• Tipped employees: Colorado allows a tip credit; employers must ensure tips + cash wage reach at least the applicable minimum.
• Overtime: Colorado follows FLSA and adds state-level protections. Most non-exempt employees earn 1.5× after 40 hours/week (and Colorado wage orders contain additional daily/industry rules). Check your employer’s posted wage order if you’re unsure.

Sales tax snapshot

• State base rate: 2.9%.
• Combined rates: Cities/counties and special districts add on top, producing ~7%–9.5% totals for many addresses (some home-rule cities run higher). The rate depends on the delivery/service address.
• Common exemptions: Most groceries for home consumption are exempt from the state 2.9% portion, but some local jurisdictions do tax groceries. Prescription medicines are generally exempt.
• Why it matters: Sales tax doesn’t reduce your paycheck, but it changes spending power across cities. The same net pay buys less in a higher-rate city.

Employer corner (brief)

• Colorado SUTA (UI): Wage base is higher than many states and adjusts periodically (expect a ~$20k–$22k range per employee). Rates are experience-rated; new employers start at a standard rate until they build history. Quarterly filings are required.
• FUTA: Federal wage base $7,000; effective rate typically 0.6% after credits unless federal credit reductions apply for the year.
• FAMLI premiums: Total premium ~0.9% of wages up to the SS wage base; generally split 50/50 (employee 0.45%, employer 0.45%). Employers may cover more of the employee share voluntarily.
• Head-tax cities: If your employees work in Denver (or another city with a head tax), withhold/remit the employee monthly amount and pay the employer portion.
• Admin cadence: Timely new-hire reporting, quarterly wage filings, and year-end W-2/reconciliations. Maintain strong timekeeping, overtime, reimbursement, and break-policy records; Colorado enforcement expects documentation.

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