Bonus Tax Calculator — Colorado (2026)
Bonuses in Colorado are taxed as supplemental wages: the employer usually withholds a flat 22% federal, plus 7.65% FICA and Colorado state withholding. Withholding is not the final tax; the true cost is settled on your return. Enter your bonus to see both. Colorado uses a flat personal income tax of 4.40% applied to taxable income after a state standard deduction of $16,100.
Colorado Bonus Tax Calculator
The gross bonus before withholding.
Percentage method vs aggregate method
Under the percentage method the bonus is separated from regular pay and hit with the flat 22% federal rate (37% above $1 million of supplemental wages in a year). Under the aggregate method the employer combines the bonus with your normal check and withholds at your marginal rate — which can temporarily withhold far more than 22%.
Either way the bonus is ordinary income. If your marginal federal bracket is 24% or higher, the 22% flat withholding leaves you short at filing time; if you are in the 12% bracket, you are over-withheld and get it back as a refund.
The Colorado layer on bonuses
Colorado taxes bonus income at the same flat rate as salary — up to 4.40%. A $10,000 bonus therefore carries roughly $440 of Colorado tax at the top rate, on top of federal and FICA.
Several Colorado cities (Denver, Aurora, Greenwood Village, Sheridan, Glendale) charge a flat Occupational Privilege Tax of a few dollars per month.
Reducing the tax on a Denver bonus
Deferring part of the bonus into a 401(k) or HSA cuts federal and Colorado income tax immediately, though FICA still applies. Some employers allow a separate bonus deferral election — ask payroll before the payment date, not after.
Timing matters too: pushing a bonus into January shifts the tax year, useful if this year included unusually high income from tech work or an equity event.
Local and payroll taxes Colorado adds on top
FAMLI paid-leave premiums take roughly 0.45% of wages from the employee side. That deduction sits outside the federal and state income tax lines, so build it into your own budget on top of the numbers above.
Several Colorado cities (Denver, Aurora, Greenwood Village, Sheridan, Glendale) charge a flat Occupational Privilege Tax of a few dollars per month.
Bonuses are wages, so every local layer that applies to your regular Colorado paycheck applies to the bonus too — which is why a supplemental payment often nets a smaller share than your salary does.
Working across a state line from Colorado
Colorado has no income-tax reciprocity agreements, so if you live here and work across a state line you generally file a nonresident return in the work state and claim a credit at home to avoid double taxation.
Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Denver resident spending part of the year at a client site in Wyoming may owe a nonresident return there. Keep a day-count log if you split time between states.
The rest of your Colorado tax bill
Colorado charges a 2.9% state sales tax, homeowners pay an average effective property tax of 0.49% of market value, and the minimum wage in force during 2026 is $15.16 an hour.
Home-rule cities add a lot: Denver's combined rate is about 8.81%.
Income tax is only one part of a state's take. Colorado recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. Colorado allows a large pension/annuity subtraction ($24,000 at 65+) and fully exempts Social Security for filers 65 and older.
Colorado vs Wyoming on the same salary
On a $75,000 salary, a single filer keeps about $59,001 a year in Colorado against roughly $61,593 in Wyoming — a difference of $2,592, or $216 a month.
Effective combined rates are 21.3% in Colorado and 17.9% in Wyoming. Set that gap against living costs: index 105 here versus 96 there, with property tax at 0.49% and 0.61% respectively.
Colorado income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 and up | 4.40% |