Understanding Personal Income Tax in Colorado

Colorado personal income taxes are discussed.

If you are a resident or non-resident of Colorado and receive taxable income individually from property owned or business transacted in Colorado, you are subject to tax on net Colorado income.

Therefore, if you are operating your business as an S corporation, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you.

Colorado has an extremely straightforward taxing system. The individual income tax is 4.63 percent of federal taxable income, regardless of filing status.


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