Connecticut Paycheck Calculator

Colorado Income Tax Rate

Colorado uses a statewide flat income tax, adjusted a few times in recent years by ballot measures and TABOR-related changes. Payroll starts with gross wages, subtracts pre-tax benefits—traditional 401(k), Section 125 health premiums, HSA/FSA, and commuter deductions—then applies federal withholding, FICA, and Colorado withholding based on your DE 4 form and pay frequency. Supplemental wages like bonuses and commissions may be withheld under percentage or aggregate methods aligned with federal rules. Because Colorado does not impose employee-paid city wage taxes, your main statutory layers are federal and state. The table below shows the top/flat rate by year; your effective rate is typically lower.

Colorado Median Household Income

Colorado’s median household income has risen across the last decade, driven by growth in technology, healthcare, outdoor recreation, construction, aerospace, higher education, and professional services along the Front Range. Pandemic-era volatility slowed momentum briefly, then nominal gains resumed as labor markets tightened in Denver, Colorado Springs, Fort Collins, and mountain communities. The figures below are broad, directional benchmarks to help budget and compare offers. To evaluate purchasing power, consider inflation-adjusted dollars and the substantial regional cost differences—housing, transportation, childcare, and insurance vary widely between metro, resort, and rural counties. Household size and employer benefits meaningfully affect take-home value and savings capacity statewide.

Colorado Federal Insurance Contributions Act (FICA)

FICA applies uniformly in Colorado. Employees pay 6.2% Social Security on wages up to the federal wage base (employers match) and 1.45% Medicare on all wages (also matched). High earners owe an additional 0.9% Medicare surtax above federal thresholds; employers do not match the surtax. Section 125 health premiums commonly reduce both income-tax and FICA wages; traditional 401(k) reduces income-tax wages but not FICA. Colorado pay stubs often include separate lines for Social Security, Medicare, federal income tax, Colorado income tax, any local fees, pre-tax deductions, post-tax deductions, and year-to-date totals, making it easy to verify each period.

Colorado Number of Cities with Local Income Taxes

Colorado does not levy employee-paid municipal wage income taxes. Some jurisdictions (e.g., Denver) assess fixed “head tax” style payroll fees, which are not percent-of-wages income taxes and appear separately from income-tax withholding.

How Your Colorado Paycheck Works

Your paycheck begins with gross wages for the period. Payroll subtracts pre-tax benefits—traditional 401(k), HSA/FSA, Section 125 health premiums, and eligible commuter benefits—to determine taxable wages. Withholding then includes federal income tax (per your W-4), FICA (Social Security and Medicare), and Colorado state income tax (DE 4 elections). There are no employee local wage taxes, though some cities may charge small payroll fees. Post-tax items such as Roth 401(k), garnishments, union dues, and charitable contributions are deducted after taxes. Pay frequency (weekly, biweekly, semimonthly, monthly) changes cash-flow timing but not annual liability.

Colorado Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Colorado adopts FLSA standards and adds daily overtime for many non-exempt workers—generally 1.5× after 40 hours in a week or after long daily shifts, subject to COMPS Order exemptions.
Pay frequency: Employers must designate regular paydays and pay consistently; biweekly or semimonthly schedules are common. State rules also require timely final pay and itemized wage statements—review employer policy and any agreements for specifics.

FAQs

How do I use the Colorado Paycheck Calculator?

Enter gross pay, pay schedule, DE 4/W-4 details, pre-tax benefits, and post-tax deductions to estimate federal, FICA, and Colorado withholding.

What is Colorado’s current income tax structure?

Colorado uses a flat state income tax rate; see the 10-year rate table for recent reductions and context.

Do any Colorado cities tax wages?

No percent-of-wages local income taxes on employees. Some cities impose small payroll or “head tax” fees instead.

Why is my paycheck showing multiple deductions?

You’ll typically see federal tax, Social Security, Medicare, Colorado tax, any local fees, and your pre/post-tax benefit deductions.

Do 401(k) and HSA contributions reduce my taxes?

Yes—both reduce income-tax wages. Traditional 401(k) does not reduce FICA; Section 125 health premiums generally reduce FICA.

How are bonuses and commissions withheld?

Employers may use percentage or aggregate federal methods; Colorado state withholding follows the flat-rate framework and guidance.

Are tips taxable in Colorado?

Yes. Reported tips are subject to federal income tax and FICA and count toward state taxable wages.

How often must I be paid in Colorado?

Employers must maintain regular, published paydays; most pay biweekly or semimonthly, with timely final-pay compliance requirements.

What if I work remotely from Colorado for an out-of-state employer?

Wages earned while working in Colorado are subject to Colorado income tax; reciprocity does not apply like in some neighboring states.