Tax Attorneys in Colorado

Colorado’s flat 4.25% income tax keeps taxation straightforward. Property taxes are among the lowest in the U.S., but sales taxes can exceed 11% in certain municipalities. The Colorado department of revenue – taxation administers and collects state personal income tax. The state partially exempts Social Security benefits and retirement income, offering deductions for residents over 65. Corporate income tax is 4.4%. Colorado’s Taxpayer’s Bill of Rights (TABOR) caps government revenue increases, often resulting in tax refunds. While the tax structure appears favorable, rising housing costs and varying local taxes influence overall affordability, particularly in urban regions.

Colorado levies a flat 4.25% income tax, reduced from 4.55% in 2024. The Taxpayer’s Bill of Rights (TABOR) occasionally triggers tax refunds when state revenue exceeds limits. Social Security benefits and some retirement income receive deductions. Money withdrawn from pensions, IRAs, 401(k) plans and other retirement plan income is subject to Colorado’s 4.25% income tax flat rate.

Colorado also has a 2.90% state sales tax rate and an average combined state and local sales tax rate of 7.81%. Its corporate income tax rate is 4.4%. The Colorado Department of Revenue (CDOR) administers taxes, and state withholding applies to wages. No local income tax exists, but certain municipalities impose occupational taxes. Despite low rates, rising living costs impact overall affordability.

Colorado provides tax relief through exemptions and refunds:

• Social Security benefits (fully exempt for 65+)
• Partial exemptions on pensions, 401(k), and IRA withdrawals
• Workers’ compensation and disability benefits
• Certain agricultural subsidies
• Taxpayer refunds under TABOR (when applicable)

Colorado provides:

• Sales tax exemptions for groceries, prescription drugs, and renewable energy equipment.
• Income tax exemptions for military retirees and Social Security benefits.
• Property tax exemptions for senior homeowners and disabled veterans.
• Green energy tax credits for electric vehicle purchases and home energy efficiency improvements.
• Railroad retirement benefits are exempt

The fees for hiring a Colorado tax lawyer depend on the complexity of your tax situation and the level of legal assistance required.

TaxLawyer.com connects Coloradans with experienced tax attorneys who offer tailored tax solutions while keeping legal costs manageable, ensuring you receive high-quality representation without financial strain.

Finding the right Colorado tax attorney requires:

• Understanding your tax challenge, whether personal or business-related.
• Researching reputable tax attorneys in Colorado with relevant expertise.
• Booking an initial consultation to discuss your options.
• Reviewing fee structures and engagement terms for clarity.

At TaxLawyer.com, we connect Coloradans with top tax lawyers who provide tailored legal solutions for tax disputes and compliance matters.

Colorado’s tax system is structured to favor individuals and businesses.

• Income Tax: Flat 4.25% rate for individuals and corporations.
• Sales Tax: 2.9% state rate, but local taxes can increase it to over 8%. Groceries, prescription drugs and medical equipment are exempt from sales tax, but nonprescription drugs are generally taxable.
• Capital Gains Tax: Colorado taxes capital gains as a normal income, at the rate of 4.25%.
• Property Tax: Colorado has a 0.45% effective property tax rate on owner-occupied housing value, with its residential rates among the lowest nationally.
• Corporate Tax: 4.4% on net income, with credits for renewable energy projects.
• Estate and Inheritance Tax: Colorado does not have an estate tax or inheritance tax
• Fuel & Tobacco Tax: Colorado has a 29 cents per gallon gas tax rate and a $1.94