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 rate | 2.9% for both |
| Colorado Property Tax | Residential – 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 tax | Sales .25% |
Aurora tax rates
| City of Aurora Sales and Use tax | 3.75% 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 mills | 8.605 mill levy |
| Aurora Public Schools | 81.275 mill levy |
| Cherry Creek Schools | 46.997 mill levy |
Other tax rates
| Regional Transportation District Sales Tax | 1% |
| SCFD Sales Tax | 0.1% |
More details
Tax information
Find more detailed information about tax assessment and levies.