Colorado payroll taxes
Every tax withheld from a Colorado paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: news.bloombergtax.com, taxfoundation.org, taxnews.ey.com, content.govdelivery.com.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Colorado SUTA | — | 3.05% (new) | $30,600 |
| Paid Family and Medical Leave Insurance (FAMLI) | 0.44% | 0.44% | $184,500 |
| Colorado income tax | 4.4% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
The Colorado SUTA wage base changes to $32,100 in 2027.
State unemployment insurance
Colorado charges new employers 3.05% on the first $30,600 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.72% to 10.85%. New employer rate is 1.53% base + 0.17% support + 1.35% solvency = 3.05% (heavy construction 6.285%). Range is 0.72%-4.58% for positive-balance and 5.895%-10.85% for negative-balance employers.
Support surcharge and solvency surcharge are included in the rates. FAMLI paid-leave premium is 0.88% split 50/50 (employer share applies with 10+ employees).
Register and file with the Colorado unemployment tax agency.
Paid leave and disability programs
- Paid Family and Medical Leave Insurance (FAMLI): employees pay 0.44%, employers pay 0.44% on wages up to $184,500. Total 0.88% in 2026 split 50/50 (employers with 10+ employees). Employers with <10 employees owe no employer share but must remit the employee 0.44%. 2027 total announced at 0.86% (split assumed 50/50). Cap = SS wage base.
Income tax withholding
Colorado has a flat income tax of 4.4% on taxable income. Occupational privilege taxes (flat monthly head taxes): Denver $5.75/mo employee, Aurora $2/mo, Greenwood Village $2/mo, Sheridan $3/mo, Glendale $5/mo
Frequently asked questions
- What payroll taxes do employers pay in Colorado?
- Social Security, Medicare, federal unemployment (FUTA) and Colorado unemployment insurance (SUTA), plus Paid Family and Medical Leave Insurance (FAMLI).
- What is the Colorado SUTA wage base for 2026?
- $30,600 per employee. It changes to $32,100 in 2027.
- Does Colorado require state income tax withholding?
- Yes. Employers withhold Colorado income tax based on the employee's state withholding certificate or federal W-4.