Colorado Paycheck Calculator

The Colorado Paycheck Calculator estimates your take-home pay after federal income taxes, Colorado state income tax at a flat 4.4% rate, FICA contributions, and the mandatory FAMLI (Family and Medical Leave Insurance) premium. Colorado uses a flat tax rate that applies equally to all income levels, making the state tax calculation straightforward. The 4.4% rate for 2024 represents a reduction from 4.55% in 2023, continuing a trend of gradual rate decreases driven by the state's Taxpayer Bill of Rights (TABOR) amendment. Colorado's FAMLI program, which took effect in 2024, is a mandatory payroll deduction that funds paid family and medical leave benefits for Colorado workers. The total FAMLI premium is 0.9% of wages, split equally between the employee (0.45%) and the employer (0.45%). Employees of small businesses with fewer than 10 workers are not required to pay the employer share, so some workers may see the full 0.9% deducted. FAMLI provides up to 12 weeks of paid leave (16 weeks for pregnancy or childbirth complications) at a benefit rate of up to 90% of the state average weekly wage for qualifying events including the birth or adoption of a child, serious health conditions, and military family needs. Colorado does not impose any local or city income taxes, so the flat 4.4% state rate is the only income tax applied to wages. This simplicity is a significant advantage for payroll calculation compared to states like Maryland or Indiana where local taxes vary by jurisdiction. Colorado's tax system is further notable for its connection to TABOR, the Taxpayer Bill of Rights constitutional amendment passed in 1992, which limits the rate at which state revenue can grow. When revenue exceeds TABOR limits, the state must refund the excess to taxpayers, which has historically resulted in TABOR refund checks or rate reductions. This calculator is used by employees across Colorado's diverse economy including technology, aerospace, energy, tourism, healthcare, and government sectors. It serves employers calculating payroll, workers comparing Colorado compensation with neighboring states like Wyoming and Nevada (no income tax), Utah (4.65% flat), and Kansas (up to 5.7%), and financial planners helping clients understand the combined impact of Colorado's income tax, FAMLI premium, and TABOR refund dynamics.

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1. 1Enter your gross pay amount and select your pay frequency. Colorado employers use standard pay schedules including weekly, biweekly, semi-monthly, and monthly. Your gross pay includes base salary, overtime, bonuses, commissions, tips, and other taxable compensation. Colorado's economy includes major employers in technology (centered in the Denver-Boulder corridor), aerospace and defense (Lockheed Martin, Raytheon, United Launch Alliance), energy (oil and gas in the Western Slope and DJ Basin), tourism and hospitality (ski resorts, national parks), and healthcare. For tipped workers, gross pay includes reported tips.
2. 2Federal income tax is calculated based on your W-4 elections using the 2024 brackets from 10% to 37%. Pre-tax deductions such as 401(k) contributions, health insurance premiums, HSA contributions, and FSA contributions reduce your federal taxable income. Colorado's tax calculation is unique in that it starts with your federal taxable income (after the federal standard deduction) rather than your gross income, which means any federal pre-tax deduction automatically reduces your Colorado tax base as well.
3. 3Colorado state income tax is calculated at the flat 4.4% rate on your Colorado taxable income. Colorado uses federal taxable income as the starting point and then makes Colorado-specific additions (such as state tax refund income) and subtractions (such as a portion of military retirement pay or PERA/DPS retirement contributions). Because Colorado conforms to federal taxable income, the federal standard deduction effectively serves as the Colorado standard deduction. This means every dollar of 401(k) contribution reduces your Colorado tax by 4.4 cents, making pre-tax retirement savings doubly efficient.
4. 4The FAMLI premium is deducted at 0.45% of your gross wages (employee share). Your employer pays the other 0.45%. There is no wage cap on FAMLI contributions, so the premium applies to all wages. For a worker earning $80,000, the annual employee FAMLI cost is $360 or approximately $13.85 per biweekly paycheck. Employees of very small businesses (fewer than 10 employees) may be exempt from the employer contribution, but the employee share still applies. FAMLI provides up to 12 weeks of paid leave for qualifying events.
5. 5FICA taxes are calculated on your gross wages at the standard federal rates. Social Security is 6.2% on the first $168,600 and Medicare is 1.45% on all wages plus the 0.9% Additional Medicare Tax on wages over $200,000. These calculations are the same regardless of which state you work in. Combined with the FAMLI premium, Colorado workers pay a total of approximately 8.1% in payroll taxes (7.65% FICA + 0.45% FAMLI) before state income tax is applied.
6. 6The calculator totals all deductions and subtracts them from your gross pay to determine your net take-home amount. Beyond taxes and FAMLI, your paycheck may include deductions for health insurance, dental and vision coverage, life insurance, retirement plan contributions, HSA or FSA contributions, and any garnishments. Colorado state employees may contribute to PERA (Public Employees Retirement Association), which is a mandatory contribution that also reduces taxable income for both federal and Colorado purposes.
7. 7Review your results and factor in TABOR refund dynamics. In years when Colorado collects more revenue than TABOR allows, the state issues refunds to taxpayers. These refunds have varied from a few hundred dollars to over $800 per person in recent years. While TABOR refunds are not reflected in your regular paycheck, they effectively reduce your net annual Colorado tax burden. When comparing Colorado to other states, consider the TABOR refund as a partial offset to the 4.4% income tax rate.

• !Overlooking the FAMLI Premium as a New Payroll Deduction: The Colorado FAMLI program began collecting premiums in 2023 with benefits becoming available in 2024. Many workers who have not recently reviewed their pay stubs may not notice this new 0.45% deduction. While the amount is relatively small (approximately $360 annually for a $80,000 earner), failing to account for it in budgeting can cause minor surprises. Some workers may also confuse FAMLI with FMLA (the federal Family and Medical Leave Act), which provides unpaid leave. FAMLI provides paid leave and is a separate program funded by payroll deductions.
• !Using an Outdated Colorado Tax Rate: Colorado's flat tax rate has been gradually decreasing due to TABOR-related provisions and legislative action. The rate was 4.63% for many years, dropped to 4.55% in 2020, and further reduced to 4.4% in 2024. Using the older 4.63% rate overstates your Colorado tax by approximately $230 per $100,000 of taxable income. Always verify you are using the current year's rate when calculating your Colorado tax liability.
• !Not Understanding That Colorado Uses Federal Taxable Income as Its Starting Point: Unlike most states that start with gross income or adjusted gross income and apply their own standard deduction, Colorado begins its tax calculation with your federal taxable income (line 15 on Form 1040). This means the federal standard deduction has already been subtracted before Colorado's 4.4% rate is applied. Workers who apply the 4.4% rate to their gross income instead of federal taxable income will significantly overestimate their Colorado tax. For a single filer, the federal standard deduction of $14,600 reduces the Colorado tax base, saving $642 in Colorado taxes before any other adjustments.