State Tax Laws - Colorado

Tax rates here are rather straightforward- 4.63% of federal adjusted taxable income. Uses federal exemption and standard deduction. The first $20,000 of combined social security and pensions are deducted for those between 55-64 years old, or $24,000 for those over 65 years of age. There is no estate tax in Colorado. Corporations in Colorado pay a flat tax of 4.63% of net income, just like the personal taxes. Partnerships and S-corps do not pay a separate tax but are required to withhold and pay in the 4.63% tax from partners or shareholders payments. State sales taxes are only 2.9% but in various localities they can range up to 9.6%. A periodic report accompanied by a $10 fee is due each year. Colorado business and tax information can be found at: http://www.colorado.gov/


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