Tax rate used in calculating Colorado state tax for year 2025

Withholding Formula >(Colorado Effective 2025)<

1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
   
   
2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
   
   
3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
   
   
4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
   
   
5. Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income.

Exemption Allowance = $5,000 (for Single) or $10,000 (for Married)

6. Apply the taxable income computed in step 5 to the following table to determine the annual Colorado tax withholding.
   
   

Tax Withholding Table
If the Amount of Taxable Income Is:		The Amount of Colorado Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$      0	>and over	$  0	plus	4.40%	$      0





7. Divide the annual Colorado tax withholding by 26 and round to the nearest dollar to obtain the biweekly Colorado tax withholding.