Paying Too Much in Colorado Taxes? Here’s How Your Burden Compares Nationally

Sure, sure, it seems like everything costs more, including all of those taxes going to Uncle Sam and his local and state governments and taxing districts family, especially in Colorado.

But, you know, it’s not so bad here in Colorful Colorado.

For one, we have a flat income tax rate — 4.4 percent. We’re one of just 11 states with a flat tax. And that’s slightly lower than it had been after voters passed a 0.15 percent reduction. Five cities also collect local income tax: Denver, Aurora, Glendale, Greenwood Village and Sheridan.

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And Colorado has one of the lowest sales taxes — 2.9 percent — in the country. Again, though, cities, counties and special districts can pile on, with the average reaching 7.81 percent, according to the Tax Foundation. That puts us at No. 16 in the country.

Add it them all up, like those sales taxes, and Colorado falls in the middle of the nation when it comes to the total taxes we pay as a percentage of our income. WalletHub, which did all the math for us, ranks the cost of Colorado taxes at No. 24.

Just how much is your tax burden as a Colorado resident?

Coloradans spend 8.4 percent of their income on taxes.

New York, Hawaii and Vermont top the list with tax burdens of 12.02 percent, 11.8 percent and 11.12 percent, respectively.

Alaska, New Hampshire and Wyoming have the lowest tax rates, at 4.93 percent, 5.63 percent and 5.7 percent, respectively.

SPEAKING OF TAXES ADDING UP: What is a PIF, and Why am I Constantly Paying it in Fort Collins?