Colorado paycheck taxes at a glance
| Income tax on wages | Flat 4.4% |
|---|---|
| CO FAMLI (0.44%) | 0.44% of wages up to $184,500 |
| Minimum wage (2026) | $15.16 an hour (tipped employees at least $12.14 plus tips; Denver sets a higher local rate) |
Local taxes: Denver, Greenwood Village, Glendale and Sheridan charge small monthly occupational privilege taxes (Aurora repealed its tax effective January 1, 2025).
Example: a $99,700 salary in Colorado
The median household income in Colorado is about $99,729 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $3,834.62 |
|---|---|
| Federal income tax | −$504.00 |
| Social Security | −$237.75 |
| Medicare | −$55.60 |
| Colorado income tax | −$141.48 |
| CO FAMLI (0.44%) | −$16.87 |
| Take-home pay | $2,878.92 |
That's $74,852 a year in take-home pay, or 24.9% of gross pay going to taxes.
Take-home pay by salary in Colorado
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,272.78 | $33,092 | $1,228 | 17.3% |
| $60,000 | $1,853.63 | $48,194 | $2,196 | 19.7% |
| $80,000 | $2,382.55 | $61,946 | $3,164 | 22.6% |
| $100,000 | $2,886.48 | $75,048 | $4,132 | 25% |
| $150,000 | $4,124.59 | $107,239 | $6,552 | 28.5% |
| $200,000 | $5,385.52 | $140,024 | $8,903 | 30% |
What changed for 2026
- The FAMLI premium is 0.88% of wages for 2026, down from 0.9% in 2025. Employers can deduct up to half from your pay, so the most you can be charged is 0.44%. The rate falls again, to 0.86%, on January 1, 2027.
- If you claim the new federal deduction for overtime pay, you must add the full amount back on your 2026 Colorado return. No add-back is required for the federal deduction for qualified tips.
- For taxpayers with adjusted gross income over $300,000, the cap on itemized or standard deductions that Colorado allows is now $1,000 for single filers and $2,000 for joint filers, starting in 2026.
- The state minimum wage rose to $15.16 an hour, with a tipped cash wage of $12.14.
Colorado pay rules worth knowing
- Colorado requires employers to pay wages at least monthly, according to the U.S. Department of Labor's survey of state payday rules.
Colorado starts from your federal return
Colorado’s income tax is built on top of the federal one. The starting point is federal taxable income, which already has your federal standard deduction or itemized deductions taken out. Colorado then adds back a few items, subtracts others, and applies a single flat rate. There are no Colorado brackets, personal exemptions or separate standard deduction.
A few federal changes don’t carry over for 2026:
- Overtime. If you claim the federal deduction for overtime pay, Colorado requires you to add the full amount back, so overtime is fully taxed by the state.
- Tips. The federal deduction for qualified tips does carry over, with no Colorado add-back.
- High incomes. If your adjusted gross income is over $300,000, Colorado limits your federal standard or itemized deduction to $1,000 (single) or $2,000 (joint) and adds back the rest. The calculator models this.
FAMLI: Colorado’s paid leave premium
Colorado’s Paid Family and Medical Leave Insurance program (FAMLI) is funded by a premium on wages. For 2026 it’s 0.88% of wages, down from 0.9%, and it applies to wages up to the Social Security wage base of $184,500. Employers can deduct up to half of the premium from your pay, 0.44%, and pay the rest themselves. Some employers pay the whole premium, so check your stub. The calculator assumes your employer deducts the full employee share. The rate drops again to 0.86% on January 1, 2027.
FAMLI benefits replace part of your wages during qualifying leave for a new child, your own serious health condition, a family member’s care and certain other reasons.
Occupational privilege taxes in the Denver area
A few Colorado cities charge an occupational privilege tax (OPT), a flat monthly “head tax” on people who work there. It isn’t a percentage of pay, so it doesn’t fit the local-rate field in the calculator, but it’s small.
| City | Employee pays | Applies when monthly earnings in the city are |
|---|---|---|
| Denver | $5.75 a month | $500 or more |
| Greenwood Village | $2 a month | $250 or more |
| Glendale | $5 a month | more than $750 |
Employers pay a matching or separate business tax on top. The tax follows where you work, not where you live. If you split your time between two cities that both charge an OPT for the same employer, Denver’s rules say you pay where you spend most of your working hours. Aurora repealed its OPT effective January 1, 2025.
The income tax calculator estimates the federal taxable income that Colorado starts from, and the salary calculator converts hourly pay to annual figures.
Estimates only. Your employer’s payroll system and your W-4 and Colorado withholding certificate determine your actual paycheck.
Sources
- U.S. Department of Labor: State minimum wage laws
- U.S. Department of Labor: Minimum wages for tipped employees
- U.S. Department of Labor: State payday requirements
- Colorado Department of Revenue: Individual income tax guide
- Colorado FAMLI: Premium and benefits calculator
- Colorado Department of Labor and Employment: 2027 FAMLI premium bulletin
- City and County of Denver: Tax Guide Topic 61, Occupational Privilege Taxes
- City of Greenwood Village: Occupational Privilege Tax
- City of Glendale: Occupational Privilege Tax
- City of Aurora: Occupational Privilege Tax repeal
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- tax.colorado.gov
- famli.colorado.gov
- IRS Publication 15-T (federal withholding)
Frequently asked questions
What is FAMLI on my Colorado pay stub?
It's your share of the premium for Colorado's Paid Family and Medical Leave Insurance program, which pays partial wages when you take leave for a new child, a serious health condition or a family member's care. For 2026 the premium is 0.88% of wages, and your employer can deduct up to half of it, 0.44%, from your pay.
Why does Colorado tax depend on my federal return?
Colorado income tax starts from federal taxable income, so your federal standard deduction (or itemized deductions) carries over to your Colorado return. Colorado then makes its own additions and subtractions before applying its flat rate.
Does Colorado tax my overtime pay?
Yes. The federal deduction for overtime pay doesn't carry over. Colorado requires you to add back the full amount of the federal overtime deduction on your 2026 return. Tips are treated differently; Colorado doesn't require an add-back for the federal tips deduction.
How much is the Denver head tax?
If you earn at least $500 in a month for work performed in Denver, your employer withholds $5.75 for that month as the Employee Occupational Privilege Tax. Your employer pays a separate $4.00 a month. If you have two Denver employers, you pay it only once by giving the second employer Form TD269.
Does Aurora still have an occupational privilege tax?
No. Aurora repealed its occupational privilege tax effective January 1, 2025, so it no longer comes out of paychecks for work in Aurora.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.