Denver rules
How Colorado and Denver tax your paycheck in 2026
Denver is in Colorado, which uses a clean flat 4.4% income tax applied to federal taxable income. Denver layers on a very small flat Occupational Privilege Tax (a "head tax"), so a Denver paycheck is mostly federal tax, FICA and the flat 4.4% state tax.
Colorado flat 4.4% income tax
Colorado starts from your federal taxable income (after the federal standard deduction) and applies a single 4.4% rate — no state brackets to track. TABOR surplus refunds occasionally trim the effective rate in a given year, but 4.4% is the headline figure for 2026.
Denver's Occupational Privilege Tax (OPT)
Denver charges an Occupational Privilege Tax of $5.75 per month from employees earning at least $500 in a month (employers pay $4.00 more). It's a flat head tax, not a percentage — about $69 a year — included in the result line. Unlike a true city income tax, it doesn't scale with your salary.
Compare Denver with other cities
Run your salary through statewide Colorado, no-tax Austin or Phoenix, or high-tax Los Angeles.
Questions
Denver salary calculator FAQ
Does Denver have a city income tax?
Not a percentage-based one. Denver charges a flat Occupational Privilege Tax ("head tax") of $5.75 per month for employees earning at least $500 monthly — about $69 a year — rather than a city income tax that scales with salary. Colorado's flat 4.4% state income tax is the main state deduction.
What is the Colorado income tax rate for 2026?
Colorado levies a flat 4.4% income tax on federal taxable income — no brackets. TABOR surplus refunds can temporarily lower the effective rate in some years, but 4.4% is the 2026 headline rate. It is one of the lower income-tax rates among states that tax wages.
How much is taken out of a paycheck in Denver?
A Denver paycheck loses federal income tax, 6.2% Social Security, 1.45% Medicare, Colorado's flat 4.4% state tax and the small Denver Occupational Privilege Tax. On an $85,000 single salary, total deductions run roughly 26% to 29%.
What is the take-home pay on $100,000 in Denver?
A single filer earning $100,000 in Denver takes home roughly $74,000 to $76,000 a year after federal tax, FICA, Colorado's 4.4% flat income tax and the small Denver head tax. Use the calculator above for your exact figure.
- Sources: Colorado Department of Revenue (4.4% flat tax) · City and County of Denver (Occupational Privilege Tax $5.75/mo) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 9, 2026 · Tax year 2026
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