Denver, Colorado Local Income Tax

1.

Denver Income Tax

Denver has local income tax for residents, so residents of Denver pay only the Colorado income tax and Federal income tax on most forms of income.

There is no Denver income tax imposed on nonresidents who work in Denver, although they may have to pay the resident local income tax in their own municipality.

Denver Income Tax Information:

$5.75 per month on compensation over $500

2.

What is a local income tax?

A local income tax is a special tax on earned income collected by local governments like counties, cities, and school districts. Fourteen states including Colorado allow local governments to collect an income tax.

While the federal income tax and the Colorado income tax are progressive income taxes with multiple tax brackets, all local income taxes are flat-rate taxes which are the same for every taxpayer regardless of income.

Another major difference between local income taxes and federal or state taxes is that most local taxes are collected only on earned income, and not on capital gains or other non-earned income like interest and dividends.

3.

How do you pay the Denver income tax?

The Denver income tax is due on April 15th, when you file your federal and state tax returns. Because calculating your local income tax is relatively simple compared to your other tax returns, many tax preparers will file your Denver income tax return for free.

If you file your own taxes, the Denver tax collector will likely mail you a copy of the tax forms you need by April. Unfortunately, many leading e-file providers (like TurboTax and H&R Block) do not support local income taxes. Denver may have a proprietary e-filing system you can use alongside your state and federal e-filing provider.

4.

Other local income taxes in Colorado

We have information on the local income tax rates in 3 Colorado localities. Use this list to compare the Denver income tax with local income taxes in nearby cities. Click on any city or county for more details.