Skip to content
PaycheckDesk

Colorado · tax year 2026

Does Colorado tax tips and overtime?

Tips are covered here, overtime is not.

Colorado charges a flat 4.4% on your federal taxable income. It follows the federal tips deduction, but NOT the overtime deduction — under HB25-1296 any federal overtime deduction is added back, so it does not reduce your Colorado tax.

What it means on a real paycheck

Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.

In Colorado it is worth $352 more, because the state follows the federal deduction. Together that is $1,312.

How Colorado works out the tax

Colorado charges a flat 4.4%. It begins from your federal taxable income.

Worth knowing about Colorado

It starts from your federal taxable income

Most states begin at your adjusted gross income and apply their own deduction. This one begins after the federal standard deduction has already come off, which is why the two federal deductions can reach it without the state passing any law of its own.

Your own numbers

Your gross pay before any taxes or deductions.

Married filing separately cannot claim these deductions at all, so it is not offered here.

Traditional, pre-tax. Lowers income tax but not Social Security or Medicare.

Pre-tax cafeteria-plan premiums. These lower income tax and FICA.

Take-home pay per paycheck (26 per year)

$1,922

$49,977 a year after taxes and deductions.

Colorado charges a flat 4.4% on your federal taxable income. It follows the federal tips deduction, but NOT the overtime deduction — under HB25-1296 any federal overtime deduction is added back, so it does not reduce your Colorado tax. See what that costs you →

Where the money goes each year

Gross salary$62,000
Federal income taxTop rate applied: 12%−$5,260
Social Security−$3,844
Medicare−$899
State income tax (CO)Flat 4.40% on $45,900 of state taxable income−$2,020
Take-home pay$49,977

Per paycheck

Gross$2,385
Taxes withheld−$462
Net$1,922

Estimate for tax year 2026 assuming the standard deduction, no dependents or credits, and even pay across the year. Your employer withholds using your Form W-4, so an individual paycheck can differ. Effective total tax rate: 19.39%. Not tax advice.

Where these figures come from

Colorado’s rates and reliefs here were taken from Colorado’s own publication and last checked on 2026-07-31. A state appears in this calculator only once its figures have been read off that state’s own paperwork and covered by tests — never estimated, and never copied from another site.

Figures on this page are for tax year 2026 and were last checked against the primary sources on 2026-07-31. See our sources. This is an estimate, not tax advice.

← All states