Individual Income Tax Guide

Colorado imposes a tax on the income of every Colorado resident individual. Colorado income tax also applies to the Colorado-source income of any nonresident individual. In the case of an individual who is a Colorado resident for only part of the year, Colorado tax is imposed both on the income recognized while the individual was a Colorado resident, as well as any income derived from Colorado sources.

In general, each Colorado resident, part-year resident, or nonresident with income from Colorado sources is required to file a Colorado return if they are required to file a federal income tax return or they incur a Colorado tax liability. If an individual is not required to file a federal income tax return, they generally are not required to file a Colorado income tax return.

Colorado income tax is based generally on federal taxable income, although various modifications and adjustments are made in the calculation of Colorado income tax. Colorado law requires certain additions, and permits certain subtractions, in the calculation of Colorado taxable income.

Colorado allows a variety of income tax credits that may be applied against an individual’s income tax liability. Additionally, many Colorado income tax credits are refundable, to the extent they exceed the tax otherwise due. Information about refundable and nonrefundable credits is available online at Income Tax Credits .

Individuals are generally required to remit Colorado income tax as they receive income throughout the year. If the individual earns wage income as an employee, their employer will generally withhold Colorado income tax from their wages. If an individual receives income from other sources, they may be required to remit quarterly estimated tax payments in anticipation of the Colorado income tax they will owe. A refund is allowed for any overpayment of an individual’s tax resulting from either wage withholding or estimated tax payments.

This publication is designed to provide taxpayers with general guidance regarding Colorado individual income tax, including the calculation of the tax, filing of returns, and other related requirements. Nothing in this publication modifies or is intended to modify the requirements of Colorado’s statutes and regulations. Taxpayers are encouraged to consult their tax advisors for guidance regarding specific situations.