2026 Tax Tables

Colorado Payroll Withholding Calculator (2026)

Colorado voters approved Proposition 121 in November 2022, reducing the state income tax rate from 4.55% to a flat 4.4%, effective January 1, 2022. Colorado's withholding system is notably simple for employers: it uses the employee's federal W-4 filing status and the federal standard deduction, so no separate state W-4 is required for most employees. The optional DR 0004 allows employees to claim additional withholding adjustments.

Calculate ColoradoWithholding →

State Tax Rate

4.4% flat

State W-4 Form

DR 0004 (optional)

Tax Year

2026

Key Facts

  • Flat 4.4% rate (reduced from 4.55% by Proposition 121, effective January 2022)
  • Uses federal W-4 filing status — no separate Colorado W-4 required for most employees
  • Standard deduction equals the federal standard deduction ($16,100 single / $32,200 married for 2026)
  • DR 0004 is optional — employees use it only to claim additional deductions or withholding

Ready to calculate Colorado withholding?

Free, accurate, no account required. Results update as you type.

Open Calculator →

Colorado Withholding — Frequently Asked Questions

What is the Colorado income tax rate for 2026?

Colorado uses a flat 4.4% income tax rate, reduced from 4.55% after voters passed Proposition 121 in November 2022.

Does Colorado require a state W-4 form?

No separate Colorado W-4 is required for most employees. Colorado withholding uses the employee's federal W-4 filing status and the federal standard deduction. The DR 0004 is an optional form employees can submit to reduce withholding through additional deductions.

What is the Colorado standard deduction for withholding?

Colorado's standard deduction for withholding matches the federal standard deduction: $16,100 for single filers and $32,200 for married filing jointly in 2026.

How is Colorado payroll withholding calculated?

Annualize the gross wages, subtract the Colorado standard deduction based on the employee's federal filing status, multiply by 4.4%, then de-annualize back to the pay period amount.