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Monday, Jan. 13, 2025

Does Colorado have one of the lowest tax burdens in the country?

Por Jaijongkit, The Colorado Sun
no

While Colorado’s state sales tax is low, other state and local taxes place its burden in the middle of the pack among states.

A 2024 analysis by WalletHub found Colorado’s property, individual income and sales and excise taxes add up to 8.42% — the 24th highest overall tax burden in the U.S. 

Among states with a statewide sales tax, Colorado has the lowest at 2.9%. Alaska, Delaware, Montana, New Hampshire and Oregon do not impose a state sales tax. However, Colorado has one of the highest average local sales tax rates, at 4.91%, making its overall sales tax burden the 16th highest in the U.S., the Tax Foundation found in 2024. Higher sales taxes are often in ski towns, with Winter Park topping the list at 11.2%. 

Colorado’s property tax rate of 0.51% is the third lowest, above Hawaii’s 0.30% and Alabama’s 0.40%, according to TurboTax.

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