For more on how deductions change taxable wages, see our
pre-tax vs. post-tax deductions guide.
Colorado Paycheck Tax Calculator: How Colorado Withholding Works
A Colorado paycheck calculator has three state lines
to get right: 4.40% income tax withholding under DR 1098, the 0.44%
FAMLI premium and, for some workers, a monthly local occupational
privilege tax. On your pay stub the income tax usually appears as
SIT or state withholding,
and FAMLI often appears as FAMLI EE or FLI; our
pay stub abbreviations list
explains the codes.
Form DR 0004 Is Optional
Colorado has its own withholding certificate, Form DR 0004. Employees
can file it to set their own annual allowance on Line 2
and request extra withholding on Line 3. If you don't file one, your
employer uses the $5,500 or $11,000 default from DR 1098. The
worksheet on DR 0004 is how you account for dependents, itemized
deductions or credits; your employer can't adjust Colorado
withholding any other way.
Colorado FAMLI in 2026
FAMLI funds paid family and medical leave for Colorado workers. The
2026 premium is 0.88% of wages, split evenly: 0.44% from the
employee and 0.44% from the employer. Premiums stop once wages for
the year reach the Social Security wage base of $184,500. Employers
with fewer than 10 employees still remit the employee share but
don't owe the employer share, and any employer can choose to pay the
employee share. If yours does, set the FAMLI field to 0.
Federal Withholding for Colorado Paychecks
Federal withholding uses your Form W-4 and the 2026 IRS Publication
15-T tables. The calculator supports filing status, Step 2(c), Step 3
credits and Step 4(a), 4(b) and 4(c). If you claim the new overtime
or tips deductions, our
W-4 Step 4(b) worksheet guide
shows how to enter them, and our
2026 federal tax withholding guide
covers the rest. Colorado withholding starts from federal taxable
wages, so pre-tax deductions lower both.
Working Across State Lines
Colorado residents owe Colorado tax on all of their income and claim
a credit for tax paid to another state. Nonresidents owe Colorado tax
on wages for work done in Colorado. Colorado has no reciprocal
agreements, so commuters from
Wyoming,
which has no income tax, still have Colorado tax withheld, while
people who live in Colorado and work in
Utah
or Kansas
may see two states' withholding.
Employer Payroll Costs in Colorado
Employers pay state unemployment insurance
premiums on the first $30,600 of each employee's wages in 2026, the
employer half of FAMLI, the employer OPT where it applies, their
share of Social Security and Medicare and federal unemployment tax.
None of these come out of your pay. At year-end, our
W-2 form generator
can use the same wage and withholding totals.
Why Your Actual Colorado Paycheck May Differ
This calculator is a close estimate, not your employer's payroll
run. A DR 0004 on file, whether your employer pays FAMLI for you,
the week OPT is taken, benefit elections, year-to-date wages and a
27th biweekly payday in some years can all move the result a little.
Bonuses can be withheld differently; see
why bonuses are taxed so high.
For a full checklist, see
why your paycheck is lower than expected.
Official 2026 Colorado Payroll Sources
Payroll facts on this page are checked against the
2026 DR 1098 withholding worksheet,
Form DR 0004 (2026),
the FAMLI Division,
the Colorado Department of Labor and Employment,
the Denver OPT tax guide
and IRS Publication 15-T for 2026.
Reviewed September 24, 2026.
