Colorado Salary Paycheck Calculator

Colorado payroll taxes

• Colorado state income tax (PIT): Flat rate on taxable income; employers withhold using Colorado Form DR 0004 elections.
• FAMLI premium: Colorado paid family and medical leave premium is shared by employer/employee; the employee share is a small percentage of wages (check current rate).
• FICA (federal): Social Security and Medicare (see the “Colorado Federal Insurance Contributions Act (FICA)” section).
• State Unemployment Insurance (SUI): Employer-paid; employees do not pay Colorado UI from wages. Employers pay UI on wages up to the state’s taxable wage base (varies by year) at a rate set by experience/new-employer schedules.
• Local income taxes: None on wages in Colorado. (Some jurisdictions have employer “head” or business taxes; these do not reduce employee net pay.)
• Pre-tax deductions: Traditional 401(k), HSA/FSA, Section 125 premiums reduce taxable wages where eligible.
• Post-tax deductions: Roth 401(k), garnishments, after-tax benefits reduce take-home after taxes.

How Your Colorado Paycheck Works

1. Start with gross pay for the period (salary, or hourly rate × hours, including overtime if due).
2. Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to get taxable wages.
3. Compute FICA (Social Security to the annual wage base; Medicare on all wages; Additional Medicare for high earners).
4. Calculate federal withholding using IRS methods and your W-4.
5. Calculate Colorado withholding using the flat state rate and your DR 0004 election.
6. Withhold the employee share of FAMLI (if applicable for your employer), up to the annual wage rules.
7. Employer separately pays Colorado UI (does not reduce your net pay).
8. Subtract post-tax deductions to arrive at net pay.

Colorado unemployment insurance (UI) — employee rate over 10 years

Colorado funds unemployment benefits through employer payroll taxes. Employees do not pay Colorado UI from wages. The table shows the employee UI rate for the last decade (always zero), plus useful employer context.

Employer UI rates and the taxable wage base change periodically. Employers should use the annual rate notice from the state for exact percentages.

Colorado salary threshold

Colorado sets a state-specific exempt salary threshold under its COMPS rules that is higher than the federal FLSA minimum and updates periodically. To classify an employee as exempt (executive, administrative, professional), the salary must meet the current Colorado threshold and the duties tests. Always verify the latest COMPS Order for the exact annual amount in effect for your pay period.

Median Household Income — Colorado (10 years, current dollars)

Illustrative nominal values showing the trend over the last decade. Use the latest ACS/FRED release for final published figures.

Colorado Federal Insurance Contributions Act (FICA)

• Social Security: 6.2% employee + 6.2% employer, up to the federal wage base.
• Medicare: 1.45% employee + 1.45% employer on all wages.
• Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Colorado has no local income taxes on wages. Cities do not deduct a percentage of employee earnings. Some jurisdictions (like Denver) impose flat employer/employee occupational privilege or business taxes, but those are not percentage-based income taxes and often do not change state paycheck withholding calculations.

Local income tax table (employee wage tax)

Colorado Wage and Hour Laws: Overtime, Pay Frequency

• Overtime: Colorado requires overtime at 1.5× after 40 hours in a week, after 12 consecutive hours, or after 12 hours in a day (whichever yields more). Some industries have specific rules.
• Minimum wage: Adjusted annually each January 1 under the state constitution/rules; many localities set higher local minimums.
• Pay frequency: Wages must be paid on regular, established paydays (commonly biweekly or semi-monthly) and within the timing rules for final pay.
• Breaks/meals: Colorado has specific rest and meal break requirements under COMPS; premium pay may apply if missed.

Additional Colorado forms

• DR 0004 — Colorado Employee Withholding Certificate (state PIT elections).
• UITR-1 / UI Accounts — Employer UI registration and rate notices.
• FAMLI Employer Registration — For paid family and medical leave premium reporting.
• Required workplace posters — COMPS Order, minimum wage, FAMLI, and federal postings.

FAQs — Colorado Salary Paycheck Calculator

How do I use a Colorado Salary Paycheck Calculator to estimate net pay?

Enter your gross pay and pay frequency, federal W-4 details, Colorado DR 0004 election, and any pre-/post-tax deductions. The tool applies FICA, federal withholding, the Colorado flat PIT rate, employee FAMLI (if applicable), and returns your take-home pay. Employer UI doesn’t reduce your paycheck.

What percentage does Colorado withhold for state income tax?

Colorado uses a single flat rate for PIT. Your employer withholds using that rate alongside your DR 0004 election and IRS rules for your federal W-4.

Why is there a FAMLI deduction on my Colorado paycheck?

Colorado’s paid family and medical leave program is funded through payroll premiums shared by employers and employees. Your pay stub shows the employee portion as a small percentage of wages up to the annual limit.

Do Colorado employees pay state unemployment tax from wages?

No. Colorado UI is employer-paid. Employees do not have a state UI line item; only employer contributions fund the program, subject to the taxable wage base and rate schedule.

Does any Colorado city take a local income tax from my wages?

No. Colorado has no local wage-based income taxes. Some jurisdictions assess flat occupational or business taxes that don’t function like a percentage income tax and usually don’t change paycheck withholding.

What salary makes me exempt from overtime in Colorado?

Colorado’s COMPS rules set a state-specific exempt salary threshold higher than the federal level. You must meet the current Colorado salary threshold and the duties tests to be exempt. If not, overtime rules apply.

How is overtime calculated under Colorado rules?

Most non-exempt employees earn 1.5× after 40 hours in a week, after 12 hours in a day, or after 12 consecutive hours—whichever yields more overtime pay.

How often must employers pay in Colorado?

Employers must establish regular paydays and pay on those days. Common schedules include biweekly and semi-monthly. Final wage timing depends on whether the separation was employer- or employee-initiated.

How are bonuses or commissions taxed on a Colorado paycheck?

They’re subject to federal withholding (using IRS supplemental methods), FICA, Colorado PIT, and the FAMLI premium (until any cap is reached). Employer UI continues until the employer’s taxable wage base is met—this is an employer expense.

Why does my coworker’s net pay differ even with the same salary?

Differences come from W-4 choices, DR 0004 elections, pre-tax benefits, Roth vs. traditional contributions, FAMLI, supplemental wage methods, and garnishments. Local head/business taxes don’t usually change paycheck withholding.