Coloradans Approve Ballot Measure Lowering Income Tax Rate

In the November 3, 2020, election, Colorado voters approved a statutory decrease to the state’s income tax rate.

What is the New Rate?

The ballot measure, Proposition 116, decreases the tax rate from 4.63% to 4.55% for the following:

When Does the New Rate Take Effect?

The new rate is effective for tax years beginning on and after January 1, 2020.

What Were the Final Election Results?

According to the Colorado Secretary of State, the measure passed with 1,821,505 (57.85%) votes. There were 1,326,943 (42.15%) votes against the proposal.

How Long Was the Previous Rate in Effect?

Beginning in 1987, Colorado instituted a flat tax with a rate of 5%. The rate was reduced to 4.63% in 2000. Aside from a temporary rate reduction in 2019, this rate remained in place until the approval of Proposition 116.

By Amber Harker, J.D.

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All stories by: CCHTaxGroup