Colorado Paycheck Calculator
Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Last reviewed on January 29, 2023
Results
Income Before Tax
Take Home Pay
Total Tax
Average Tax Rate
$ = US Dollar
Income Before Tax
Federal Income Tax
State Income Tax
State Tax Credits
Social Security
Medicare
State Disability Insurance
State Paid Family and Medical Leave (PFML)
State Unemployment Insurance
State Worker Comp
State Transit Tax
Mental Health Services Tax
Local Occupational Privilege Tax
Total Tax
Take Home Pay
Federal Deductions
State Deductions
Average Tax Rate
Table of Contents
Summary
Enter your employment income into the paycheck calculator above to estimate how taxes in Colorado, USA may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
This paycheck calculator also works as an income tax calculator for Colorado, as it shows you how much income tax you have to pay based on your salary and personal details.
To learn more about Colorado, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Frequently Asked Questions
What is the income tax rate in Colorado?
The state income tax rate in Colorado is under 5% while federal income tax rates range from 10% to 37% depending on your income. This paycheck calculator can help estimate your take home pay and your average income tax rate.
How many income tax brackets are there in Colorado?
The state income tax system in Colorado only has a single tax bracket. However, there are multiple tax brackets for federal income tax. For more details, check out our detail section.
How Your Colorado Paycheck Works
Your Colorado paycheck doesn't have to be a mystery. Whether you are paid hourly or salaried, your net pay depends on several factors, such as your income level, contributions, withholdings, and tax rates. Here’s a brief overview of how your paycheck works in the Centennial State.
First of all, you have to pay federal income tax on your income. This is a progressive tax system that applies different rates to different portions of your income. How much federal income tax that's withheld from your paycheck depends on how much you earn and how you fill out Form W-4, which helps your employer figure out how much to withhold. Be sure to update this form whenever your life circumstances change.
Next, you have to pay state tax on your income. Colorado has a flat tax rate of 4.4% for 2022. This means that everyone pays the same percentage of their taxable income regardless of how much they earn.
Colorado has an equivalent form to the W-4 and it is Form DR 0004 (Colorado Employee Withholding Certificate). Interestingly enough, you aren't required to fill out Form DR 0004 (in contrast to the W-4). That said, for most taxpayers, completing Form DR 0004 may increase your take-home pay, reduce your Colorado withholding, and reduce your refund when you file your Colorado income tax return. In other words, your state withtholding may be more accurate.
In addition to federal and state income taxes, you also have to pay payroll taxes on your income. These are taxes that fund the FICA programs of Social Security and Medicare. The Social Security tax rate is 6.2% for both employees and employers (up to a wage limit of $147,000 for 2022). On the other hand, the Medicare tax rate is 1.45% for both employees and employers (with no wage limit). If you earn more than a predetermined level, you also have to pay an additional Medicare surtax of 0.9%.
Depending on where you live and work in Colorado, you may also have to pay local taxes on your income. Some cities and counties impose occupational privilege taxes (OPT) on employees who work within their jurisdictions.
Essentially, you're being taxed on the "privilege" to perform work in the location. These taxes are usually a flat amount per month ($2-$5.75) that are taken from your paycheck if you earn above a certain threshold ($250-$750) during a calendar month.
For example, employers in Denver will take out $5.75 from your paycheck every month if you earn more than $500 in a calendar month. You should check with your employer or local government if you are subject to any OPTs where you work.
Besides taxes, there are other items that may be taken out of your paycheck depending on your situation. These include health insurance premiums, retirement contributions, union dues, garnishments, child support payments, and other voluntary or mandatory contributions.
One thing that is unique about Colorado is that it has a Taxpayer Bill of Rights (TABOR) amendment that limits the growth of state revenue and spending based on inflation and population growth. If the state collects more revenue than allowed by TABOR, it must refund the excess amount to taxpayers through various means like reimbursement for local government property tax to local seniors and disabled veterans, sales tax refunds, etc.
When you file your taxes at the start of the year (after the end of the tax year), you'll find that a state standard deduction exists and is available for those that qualify for a federal standard deduction. Along with a few other other states, Colorado uses the same amounts as that of the federal standard deduction amounts.
More From Investomatica:
For sales tax, please visit our Colorado Sales Tax Rates and Calculator page.
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Disclaimer
- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- While internal calculations are not rounded, all final resultant numbers are rounded normally with numbers ending in 0.5 and above being rounded up.
- Tax situations vary widely and calculations can get very complex. This paycheck calculator only provides a rough estimate according to the most common scenarios for standard employment income that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary.
- Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Generally, we review changes once a year since tax codes usually change once a year. If you notice a major miscalculation or error with our paycheck calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific questions about your own personal situation, please consult a licensed tax professional.
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