Colorado Income Tax Calculator
Understanding Colorado Taxes (2024)
Calculating your Colorado taxes involves state, federal, and FICA (Social Security & Medicare) taxes. This calculator helps you estimate your take-home pay by considering these key components.
Colorado State Income Tax
Colorado has a simplified flat tax rate of 4.4% for 2024. Unlike many other states with progressive tax brackets, Colorado applies this single rate to all taxable income.
- Taxable Income: Colorado uses your federal taxable income as a starting point, with some Colorado-specific adjustments.
- Standard Deduction: Colorado generally follows federal standard deduction amounts: $13,850 for Single, $27,700 for Married Filing Jointly, $20,800 for Head of Household (2024).
- Tax Rate: Flat 4.4% on all taxable income for 2024.
- Tax Credits: Colorado offers several credits including the Earned Income Tax Credit and Child Tax Credit, which this calculator does not account for.
Local Taxes
Some municipalities in Colorado may impose additional local income or occupational privilege taxes. For example, Denver and Aurora have Occupational Privilege Taxes, commonly known as "head taxes." These local taxes are not included in this calculator.
Federal Income Tax
Federal income tax is based on federal tax brackets, your filing status, deductions (standard or itemized), and allowances claimed on your W-4. Pre-tax deductions like 401(k) or HSA contributions reduce your federal taxable income.
FICA Taxes (Social Security & Medicare)
FICA taxes fund Social Security and Medicare. These are typically withheld by employers.
- Social Security: 6.2% on income up to the annual limit ($168,600 for 2024).
- Medicare: 1.45% on all income. An additional 0.9% Medicare tax applies to income above certain thresholds ($200,000 for Single, $250,000 for MFJ).
Other Colorado Taxes (Not Calculated Here)
While this calculator focuses on income taxes, be aware of other taxes in Colorado:
- Sales Tax: Colorado has a state sales tax of 2.9%, with additional local taxes that can bring the total to over 10% in some areas.
- Property Tax: Colorado has one of the lowest residential property tax rates in the nation, currently averaging around 0.49% of the home's value.
Disclaimer: This information is for general guidance for the 2024 tax year and is not tax advice. Consult a tax professional for personalized advice.