Cost of Doing Business

Competitive environment versus the coasts

Lower rate

Competitive tax rates for corporations

Colorado’s flat corporate income tax rate of 4.63% is lower than most competitive markets on the coast.

Small business advantage

Since most small businesses are S Corporations, partnerships, or sole proprietorships, they pay the flat 4.63% individual rate for business taxes. This is very competitive for small businesses compared to other states.

Colorado state tax rates

Colorado Corporate Income Tax rate (% of federal taxable income)Flat 4.63%
Colorado individual income tax rate (% of federal taxable income)Flat 4.63%
Colorado Sales and Use Tax rate2.9% for both 
Colorado Property TaxResidential – 7.2% (fluctuates from year to year) of market value Commercial, Industrial, Personal, Vacant Land – 29% of market value Mixed Use – 7.2% for residential portion, 29% for commercial of market value

Adams and Arapahoe County tax rates

Adams County Sales/Use Tax .75% sales No use tax 
Arapahoe County Sales/Use taxSales .25%

Aurora tax rates

City of Aurora Sales and Use tax3.75% sales tax General use 3.75%
City of Aurora Occupational Privilege Tax$4.00 per month per employee ($2.00 paid by employer, $2.00 paid by employee) (Applied if employee’s gross earnings are $250 more per calendar month and the employee works within the city of Aurora for any period within that month)
City of Aurora mills8.605 mill levy
Aurora Public Schools81.275 mill levy
Cherry Creek Schools46.997 mill levy

Other tax rates

Regional Transportation District Sales Tax1%
SCFD Sales Tax0.1%