Quick answer
Colorado paycheck basics
Colorado taxes wages at a flat 4.40%, but a Colorado paycheck is shaped by three things on top of that rate. Withholding starts from an annual allowance of $5,500, or $11,000 for married couples filing jointly, so the first slice of pay is not withheld on. Most workers also pay 0.44% of wages toward FAMLI, the state's paid family and medical leave program. And people who work in Denver and a few nearby cities pay a small flat monthly head tax called the occupational privilege tax.
This calculator follows the Colorado Department of Revenue's 2026 withholding worksheet, DR 1098, line by line. It uses the filing status from your federal Form W-4 unless you have filed Colorado's own certificate, form DR 0004, and it adds the FAMLI premium and any occupational privilege tax for the city where you work, so you can see Colorado take-home pay for your own salary or hourly wage.
How Colorado taxes your paycheck
Colorado's income tax is a flat 4.40% of Colorado taxable income, and the Department of Revenue's DR 1098 worksheet turns it into paycheck withholding in a few steps. The employer multiplies the period's taxable wages by the number of pay periods to get annual wages, subtracts an annual withholding allowance, multiplies what is left by 4.40%, and divides by the number of pay periods. The allowance is $11,000 if your federal W-4 shows married filing jointly or qualifying surviving spouse and $5,500 otherwise. If you file form DR 0004, the employer uses the amount on its line 2 instead, even if that amount is zero, and adds any extra withholding from line 3. A new W-4 without a new DR 0004 cancels an old DR 0004. If you claim exempt on your W-4 and have no DR 0004, no Colorado tax is withheld. Taxable wages follow federal withholding wages, so traditional 401(k) deferrals and pretax insurance premiums are left out, and bonuses go through the same worksheet as regular pay.
| Filing status | Rate |
|---|---|
| All filing statuses | 4.40% |
Colorado local income taxes
Colorado has no city or county income tax, but Denver, Glendale, Greenwood Village and Sheridan charge an occupational privilege tax (OPT): a flat monthly amount on people who work in the city, whether or not they live there, plus a separate employer share. Denver's employee OPT is $5.75 a month once you earn at least $500 there in a calendar month; Glendale's is $5 a month above $750; Greenwood Village's is $2 a month at $250 or more; Sheridan's is $3 a month. Pick the city where you work to include it. The calculator spreads the monthly amount evenly across your paychecks, so a biweekly Denver paycheck shows about $2.65; many employers instead take the full amount from one paycheck a month. Aurora repealed its OPT effective January 1, 2025.
| Jurisdiction | Rate | Applies to | Source |
|---|---|---|---|
| Denver Occupational Privilege Tax | $69/year, exempt under $6,000/year | People who work here | Source |
| Glendale Occupational Privilege Tax | $60/year, exempt under $9,000/year | People who work here | Source |
| Greenwood Village Occupational Privilege Tax | $24/year, exempt under $3,000/year | People who work here | Source |
| Sheridan Occupational Privilege Tax | $36/year | People who work here | Source |
Colorado state payroll programs
FAMLI, Colorado's Family and Medical Leave Insurance program, is funded by a premium of 0.88% of wages in 2026, split evenly: employers of 10 or more people pay 0.44% and may deduct up to 0.44% from employee pay. Premiums apply to wages up to the Social Security wage cap, $184,500 in 2026, and are post-tax, so they do not lower taxable income. The calculator shows the full 0.44% employee share; your employer may choose to pay some or all of it for you.
| Program | Employee rate | Wage base | Source |
|---|---|---|---|
| Colorado FAMLI | 0.44% | Up to $184,500/year | Source |
Worked example
A $60,000 salary in Colorado, single, paid biweekly
- Annual salary:
- $60,000
- Filing status:
- Single
- Pay frequency:
- Biweekly (26 paychecks/year)
- Deductions:
- None
- State:
- Colorado
- Salary: +$2,307.69
- Federal income tax: −$193.08
- Social Security: −$143.08
- Medicare: −$33.46
- Colorado income tax: −$92.23
- Colorado FAMLI: −$10.15
Net pay per paycheck: $1,835.69
Computed with Colorado's default withholding certificate (no allowances, no extra withholding) and no pre-tax or post-tax deductions. Your own paycheck will differ with different elections.
Take-home pay by salary in Colorado
Net pay at five common salaries, biweekly, with no bonus, tips or deductions — computed the same way as the worked example above, for Single and Married Filing Jointly.
| Annual salary | Single — per paycheck | Single — annual | MFJ — per paycheck | MFJ — annual |
|---|---|---|---|---|
| $40,000 | $1,254.85 | $32,626.10 | $1,334.92 | $34,707.92 |
| $60,000 | $1,835.69 | $47,727.94 | $1,928.85 | $50,150.10 |
| $80,000 | $2,364.60 | $61,479.60 | $2,509.68 | $65,251.68 |
| $100,000 | $2,868.54 | $74,582.04 | $3,090.53 | $80,353.78 |
| $150,000 | $4,106.66 | $106,773.16 | $4,477.28 | $116,409.28 |
How to use this calculator
- Enter your pay. Choose salary or hourly, fill in the amount and hours, and pick how often you are paid.
- Fill in your federal Form W-4. Filing status, the Step 2 checkbox, and Steps 3 and 4 if they apply to you.
- Fill in your DR 0004. The calculator only shows the fields Colorado actually asks for.
- Pick your local tax jurisdiction, if one applies to where you live or work.
- Add any deductions. Traditional or Roth 401(k), health premiums, HSA, FSA, or other pre-tax and post-tax amounts taken from your pay.
- Read your results. Net pay per paycheck, the full breakdown by category, and any warnings about your specific numbers.
Formulas used
Net pay = gross pay − pre-tax deductions − federal tax − FICA − Colorado income tax − state payroll programs − local tax − post-tax deductions.
Colorado vs. neighboring states
Net pay on a $75,000 salary, single, paid biweekly, in Colorado compared with its bordering states.
| State | Net pay per paycheck | Net pay annual | Difference vs. Colorado (annual) |
|---|---|---|---|
| Colorado | $2,238.63 | $58,204.38 | — |
| Wyoming | $2,368.94 | $61,592.44 | +$3,388.06 |
| Nebraska | $2,257.19 | $58,686.94 | +$482.56 |
| Kansas | $2,219.06 | $57,695.56 | −$508.82 |
| Oklahoma | $2,257.94 | $58,706.44 | +$502.06 |
| New Mexico | $2,263.60 | $58,853.60 | +$649.22 |
| Utah | $2,240.94 | $58,264.44 | +$60.06 |
Frequently asked questions
How is federal income tax withheld from my paycheck calculated?+
Employers use the IRS Publication 15-T percentage method with the elections on your Form W-4: filing status, whether Step 2 is checked, Step 3 credits, and any Step 4 adjustments. That produces an amount to withhold each pay period before Social Security, Medicare, and any state or local tax are applied.
What is FICA and why is it withheld on every paycheck?+
FICA is Social Security tax (6.2% of wages up to the annual Social Security wage base) plus Medicare tax (1.45% of all wages, with an extra 0.9% on wages above $200,000 in a year). Both are withheld on every US paycheck regardless of which state you work in, because they fund federal programs rather than a state one.
Is the result on this calculator the same as my actual paycheck?+
It is an estimate for planning, not a substitute for your pay stub. Your actual withholding depends on the exact elections on file with your employer, your specific pay dates, and any mid-year changes to your deductions — the calculator applies the published federal and state formulas to the numbers you enter.
What is the Colorado state income tax rate for 2026?+
A flat 4.40%, the rate the Department of Revenue's 2026 withholding worksheet (DR 1098) applies for every filing status.
How is Colorado income tax withholding calculated?+
Your employer annualizes the period's taxable wages, subtracts a withholding allowance of $5,500 (or $11,000 if your W-4 says married filing jointly), multiplies the rest by 4.40%, and divides by the number of pay periods. On a $60,000 salary paid biweekly, single, that is about $92.23 per paycheck.
Do I need to fill out the Colorado DR 0004?+
No. Form DR 0004 is optional. Without it, your employer uses the filing status on your federal W-4. You would file a DR 0004 to change the allowance, for example to account for other income, deductions or credits, or to have extra Colorado tax withheld each paycheck.
What is the FAMLI deduction on my Colorado paycheck?+
It is your share of the Family and Medical Leave Insurance premium. In 2026 the total premium is 0.88% of wages, and employers may deduct up to half of it, 0.44%, from your pay, on wages up to $184,500. On a $60,000 salary paid biweekly that is about $10.15 per paycheck.
Is FAMLI taken out before or after tax?+
After tax. The FAMLI program says premiums should be treated as post-tax deductions that do not reduce taxable income, so they do not lower your federal or Colorado withholding.
What is the Denver occupational privilege tax?+
A flat $5.75 a month withheld from people who earn at least $500 in a calendar month for work done in Denver, whether or not they live in Denver. Employers pay a separate employer OPT. You owe the employee tax only once a month, even if you have more than one Denver employer.
Which other Colorado cities have an occupational privilege tax?+
Glendale charges $5 a month on employees who earn more than $750 there in a month, Greenwood Village $2 a month at $250 or more, and Sheridan $3 a month. Aurora's OPT was repealed effective January 1, 2025. The tax is based on where you work, not where you live.
Does Colorado tax 401(k) contributions?+
No. Colorado withholding applies to wages subject to federal withholding, and traditional 401(k) deferrals are not, so they lower Colorado withholding as well as federal. Roth 401(k) contributions do not reduce either.
How are bonuses taxed in Colorado?+
Bonuses are taxable wages and go through the same DR 1098 worksheet as regular pay, so a bonus paid with your paycheck is annualized with it at the flat 4.40% rate. Federally, bonuses are usually withheld at the 22% supplemental rate.
What is the minimum wage in Colorado in 2026?+
$15.16 an hour statewide, according to the U.S. Department of Labor's state minimum wage table. Some Colorado cities, including Denver, set a higher local minimum wage.
Sources
- Colorado Department of Revenue — 2026 Colorado Withholding Worksheet for Employers (DR 1098)
- Colorado Department of Revenue — Colorado Wage Withholding Tax Guide
- Colorado FAMLI — Premium and Benefits Calculator (2026 premium rate and wage cap)
- Colorado FAMLI — Employer FAQs
- City and County of Denver — Tax Guide Topic 61, Occupational Privilege Tax
- City of Glendale — Occupational Privilege Tax
- City of Greenwood Village — Occupational Privilege Tax
- City of Sheridan — Occupational Privilege Tax
- City of Aurora — Occupational Privilege Tax (repealed January 1, 2025)
- U.S. Department of Labor — State Minimum Wage Laws
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- IRS Publication 15 (2026), Employer's Tax Guide
- Social Security Administration — 2026 COLA Fact Sheet