Income tax withholding
| Imposes wage income tax | Yes |
|---|---|
| Rate structure | Flat 4.4% |
| Withholding certificate | DR 0004 Colorado Employee Withholding Certificate |
| Accepts federal Form W-4 | Yes |
| Convenience-of-the-employer rule | No |
| Nonresident withholding threshold | From the first dollar Withholding required from the first dollar of wages for services performed in Colorado; no de minimis day or dollar safe harbor. |
| Local income taxes | Yes Several Colorado cities (Denver, Aurora, Glendale, Greenwood Village, Sheridan) impose an Occupational Privilege Tax -- a flat monthly per-employee 'head tax' with both an employee-withheld portion and an employer portion. It is not an income-based tax. Colorado also has the state-run FAMLI paid leave premium. |
Reciprocity
States that exempt Colorado residents
A Colorado resident working in these states files that state's certificate and is taxed only by Colorado.
Unemployment insurance and paid leave
| Taxable wage base 2026 | $30,600 2025 base was $27,200. |
|---|---|
| New employer rate | 1.53% |
| Experience rate range | 0.56% – 7.34% |
| Experience-rating method | reserve ratio |
| Employee UI contribution | No |
| Paid family / medical leave | Yes Colorado FAMLI 2026 premium is 0.88% of wages up to the Social Security wage base ($184,500), split 50/50: 0.44% employee, 0.44% employer. Employers with fewer than 10 employees owe no employer share but must still withhold the employee 0.44%. |
Employer registration
- Tax agency
- Colorado Department of Revenue
- UI agency
- Colorado Department of Labor and Employment (CDLE)
Sources
tax.colorado.gov · taxfoundation.org · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov · famli.colorado.gov