Use our Colorado Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions and get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your Colorado Paycheck is Calculated
Your take-home pay depends on your gross income and the deductions taken for taxes and other contributions. The basic formula is:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s a breakdown of the key components:
- Gross Pay – Your total earnings before any deductions, including salary, hourly wages, overtime, and bonuses.
- Federal Income Tax – The amount withheld by the IRS based on your filing status, income, and W-4 details.
- FICA Taxes – Social Security and Medicare contributions deducted from your paycheck to fund federal programs.
- State Income Tax – The amount withheld by the state of Colorado based on its flat income tax rate.
- Local Taxes – Any additional taxes levied by your city or county (if applicable).
A Guide to Colorado State Payroll Taxes
Colorado State Income Tax
Colorado has a flat income tax rate, meaning all taxpayers pay the same percentage regardless of income level.
The 2025 Colorado state income tax rate is 4.40 percent on taxable income.
| Tax Type | Description |
|---|---|
| Income Tax Rate | 4.40% flat rate |
| Taxable Income Base | Federal taxable income with certain Colorado adjustments |
| Standard Deduction | Follows federal deduction rules |
Because the state uses a flat tax rate, your marginal and effective rates are generally the same.
State-Specific Programs and Withholdings
Colorado does not have a state disability insurance (SDI) program. However, employees contribute to the Colorado Family and Medical Leave Insurance (FAMLI) program.
In 2025, employees contribute 0.45 percent of their wages to FAMLI, up to a wage limit of $176,100. Employers typically match this contribution, but some small employers may be exempt.
Unemployment insurance (SUI) is paid only by employers in Colorado, so it does not appear as a deduction on employee paychecks.
Understanding Federal and FICA Taxes
Federal taxes are consistent across all states and form a major portion of your paycheck deductions.
- Social Security Tax: 6.2 percent of wages, up to the annual limit set by the IRS.
- Medicare Tax: 1.45 percent of all wages, with an additional 0.9 percent applied to income above $200,000 for single filers.
- Federal Income Tax: Based on the IRS tax brackets and your W-4 elections, filing status, and taxable income.
These deductions combine to reduce your gross pay to your final take-home amount.
Local Taxes in Colorado
Most Colorado cities do not charge local income taxes. However, a few municipalities collect a small occupational privilege tax or employment fee.
Examples include:
- Denver – A monthly occupational privilege tax of $5.75 for employees earning $500 or more in a month.
- Aurora, Glendale, Greenwood Village, and Sheridan – Each has a similar local employment tax, usually a few dollars per month.
These are flat fees rather than percentage-based taxes and typically appear as small, consistent deductions on your pay stub.
Frequently Asked Questions (FAQs) About Colorado Paychecks
What is the minimum wage in Colorado?
As of 2025, the state minimum wage in Colorado is $14.42 per hour. Some cities, such as Denver, have higher local minimum wages based on cost-of-living adjustments.
How often are paydays in Colorado?
Most Colorado employers pay employees either bi-weekly or semi-monthly. While the state does not specify an exact pay frequency, employers must establish consistent pay periods and payment schedules.
What is the Colorado state tax rate for 2025?
The Colorado state income tax rate for 2025 is 4.40 percent. This flat rate applies to all taxable income after federal adjustments.
Are 1099 contractors subject to Colorado taxes?
Yes. Independent contractors in Colorado must pay state income tax on their net self-employment income at the same 4.40 percent rate. They are also responsible for paying self-employment taxes, which include both the employer and employee portions of Social Security and Medicare.
What are the overtime laws in Colorado?
Colorado law requires employers to pay 1.5 times the regular pay rate for hours worked over 40 in a week, 12 in a day, or 12 consecutive hours. Exempt employees, such as certain salaried or executive positions, are not eligible for overtime pay.
Tips for Using the Colorado Paycheck Calculator
- Enter accurate information about your filing status, number of dependents, and pre-tax deductions like 401(k) or health insurance to get an accurate estimate of your net pay.
- Remember that your paycheck may change if you move between Colorado cities or adjust your withholding allowances.
- Review your pay stub regularly to ensure the correct taxes and contributions are being withheld.
Check out other state calculators