Colorado Paycheck Calculator

Colorado Paycheck Calculator

Explore tax rates and payroll taxes that you will need to use our Colorado paycheck calculator for quick, efficient, and reliable results.


Colorado has a total of 674,741 small businesses, employing about 1.2 million people and receiving an estimated $11 billion in payroll taxes.

The average income for a small business in Colorado is $119,100 per year or $57.26 per hour with an average yearly payroll of $52925 per employee.

The Colorado economy is the 6th largest in the United States, with a gross domestic product of $371.3 billion as of 2022.

Undoubtedly, it is the second-best state to start a business contributing to the ever-growing economy of the state.

Since we are talking about businesses, tax rates, and payroll taxes, you will need our Colorado paycheck calculator for quick, efficient, and reliable results.

Registering a Business in Colorado

Before you can legally begin operating a business in Colorado, you’ll need to register your business name and file a “doing business as” (DBA) form with the Colorado Secretary of State or MyBizColorado.

This can be done through the online registration portal, which costs $15 to $30 and must be renewed annually.

Colorado Tax Overview

Colorado is well known for its outdoor lifestyle and relaxed pace. However, the state provides many tax advantages for businesses, including a flat or income-based tax rate of 4.55%.

In addition to favorable corporate and personal income rates, Colorado also has a low sales tax of 2.9 percent and just 0.48% property tax.

Employers withhold these taxes from employees' pay by filing necessary documents like Form W-2, and W-3 as instructed by the Colorado Department of Revenue.

Taxable Base Wage

The taxable base wage is the number of your earnings to be taxed or the value that you assign to your time spent working.

Colorado has a personal income tax rate of 4.55%, which essentially means that you pay 4.55% on all the income you earn above $20,400 in taxable wages.


Colorado Base Wage







SUTA Rates

SUTA is a State Unemployment Tax imposed on wages paid to employees by an employer. The state income tax rate depends on your business classification and the maximum amount of taxable wages.


Colorado SUTA Rates


0.71% to 9.64%


0.75% to 10.39%


0.75% to 10.39%

FUTA Rates

The FUTA rate applies to all of an employer’s taxable wages - including bonuses and other non-wage income - up to a maximum of $7,000 per employee, quarterly.


Colorado FUTA Rates







FICA Rates

FICA funds the government’s employees' benefits, like the Social Security tax and Medicare tax. FICA is deducted from your pay before federal income taxes.


Colorado FICA Rates







Colorado Payroll Taxes Withholding

Colorado payroll taxes are written and collected by Colorado law. State regulations are very specific on how employers must withhold and pay out employee withholding tax payments.

Colorado requires employers to withhold both state and federal taxes from employees' wages or compensation, including miscellaneous filings like Form 1099.

Colorado Paycheck Calculator

A paystub, or pay slip, can show the deductions and net amount of employee income that an employer pays. The employer must fill out the W-4 form to withhold HSA, FSA, medical insurance, and LTD (long-term disability insurance) taxes.

The difference between gross pay and net pay with regards to paying periods and 401(K) determines the total amount of taxes you'll pay.

You can use our free Aurora paycheck calculator to calculate your net income. If you are looking for how much cities in Colorado pay in taxes, for example, the Denver paycheck calculator will give you the same sort of calculations that a Colorado paycheck calculator will give.

Colorado Child Support Calculator

Child support is financial support a parent pays (biologically or adoptively) to their child's other parent.

Usually, the parent who has custody of the child is entitled to receive child support from the non-custodial parent.

In Colorado, child support is usually set through an agreement between the parents, according to the Child Support Services Program.

The child support payment is based upon an analysis of the income and expenses of each party.

Labor Laws in Colorado

Colorado's labor laws, as enforced by the state Department of Labor and Employment, attempt to protect employees while also keeping business owners in line.

Every employee has the right to fair treatment and to work in a safe environment. The laws cover topics like minimum wage, paid sick leave, overtime pay, working hours, and more. Also, child labor is illegal.

Colorado Paystub Generator

A pay stub is a portion of the paycheck that states the working hours, taxes, and wages you earned for a specific period.

You can use the Colorado check stub maker online to make pay stubs for loan applications, tax purposes, benefits, and other purposes.

Our error-free paystub generator offers free, fake pay stubs online with accurate information that you can use immediately.

Colorado Tax Resources


Colorado Department of Revenue

Section or Employee Name and Room Number

P.O. Box 17087

Denver, CO 80217-0087

(303) 238-7378.


  • Is Colorado a good tax state?

Colorado is a tax-friendly state. It has the best business climate in the country, and its residents are happy with their taxes, with an income tax of 4.40%.

  • What is the sales tax in Colorado?

Colorado's sales tax will set you back 2.9% when shopping at retailers.

  • Is food taxable in Colorado?

Yes, food is taxed in Colorado, with some exceptions. However, sales tax may vary between counties.


Colorado has a variety of tax rates on different kinds of income (unemployment, wages and tips, retirement benefits, etc.), which can be confusing.

Use our Fort Collins Paycheck Calculator to see how much tax you’ll pay this month!

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