Colorado variant. This is a Colorado-specific version of the Payroll Tax Estimator (Flat Rate), using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Payroll Tax Estimator (Flat Rate).
Colorado employers owe federal payroll taxes (Social Security, Medicare, FUTA) plus state obligations (state income tax withholding and SUTA).
Payroll tax obligations in Colorado
Employers match the 6.2% Social Security and 1.45% Medicare withheld from employees, and pay FUTA (0.6% on the first $7,000 after credits) plus state unemployment insurance.
Colorado also requires state income tax withholding (Flat 4.4%).
About taxes and housing in Colorado
Colorado applies a single flat income tax rate of 4.4% to all taxable income.
Colorado has among the lowest effective property tax rates in the country, though rapidly rising home values have pushed up assessments.
Colorado's economy spans aerospace, technology, and outdoor recreation, with strong population growth concentrated along the Front Range.
Worked example: employer cost on $92,911
On a $92,911 salary, the employer's FICA match alone is 7.65% = $7,108, before FUTA and Colorado unemployment insurance.
Quick reference
- State income tax: Flat 4.4%
- State sales tax: 2.9% (plus 4.91% avg local)
- Median home value: $565,000
- Median household income: $92,911
- Effective property tax rate: 0.55%
- Avg auto insurance: $2,065/yr
Frequently Asked Questions
What payroll taxes do Colorado employers pay?
Employer FICA match (7.65%), FUTA, state unemployment, and state income tax withholding.
What is the employer FICA match?
Employers match 6.2% Social Security + 1.45% Medicare = 7.65% of wages.