The Ultimate Guide to Colorado State Income Tax: Understanding Your Obligations


The Ultimate Guide to Colorado State Income Tax: Understanding Your Obligations

Colorado state income tax refers to the tax imposed by the state government on the taxable income of individuals and businesses within Colorado. For instance, if a resident earns a salary, they may owe a portion of that income to the state in the form of income tax.

This tax serves as a crucial source of revenue for the state, funding essential public services and infrastructure. It is also a progressive tax, meaning that higher earners pay a greater percentage of their income in taxes. In 1992, Colorado voters approved an amendment to the state constitution that limited the income tax rate to 7%.

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