PAYROLL TAX RATES
Colorado payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Colorado, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Colorado Department of Revenue, Taxation Division (opens in a new tab) | Colorado DOR, Colorado Wage Withholding Tax Guide (opens in a new tab) | |
| Withholding rates | 4.4% flat | Colorado DOR, DR 1098 (10/21/25): 2026 Colorado Withholding Worksheet for Employers (PDF) (opens in a new tab) | |
| Supplemental wages | Same as regular wages | Colorado DOR, DR 1098 (10/21/25): 2026 Colorado Withholding Worksheet for Employers (PDF) (opens in a new tab) | |
| Reciprocity | None | Colorado DOR, Colorado Wage Withholding Tax Guide (opens in a new tab) | |
| Employee's withholding form | Form DR 0004 (optional; federal W-4 otherwise) | Colorado DOR, DR 0004 Colorado Employee Withholding Certificate (opens in a new tab) | |
| Local income taxes | No | City and County of Denver, Treasury: Business Tax Information (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $15.16 | CDLE, Employers (2026 Minimum Wage) (opens in a new tab) | |
| Next change | $15.71 | CDLE press release, Colorado Minimum Wage will Increase to $15.71/hour in 2027 (Aug 13, 2026) (opens in a new tab) | |
| Tipped employees, cash wage | $12.14 | CDLE, Employers (2026 Minimum Wage) (opens in a new tab) | |
| Rises with inflation | Yes | CDLE press release, Colorado Minimum Wage will Increase to $15.71/hour in 2027 (Aug 13, 2026) (opens in a new tab) | |
| Local rates | Higher local minimums in 2026: Denver $19.29, Edgewater $18.17, City of Boulder and unincorporated Boulder County $16.82. For 2027: Denver $19.84, Edgewater $19.84, City of Boulder $18.17; Boulder County to be announced. | CDLE, Division of Labor Standards and Statistics: Annual Minimum Wages (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
Colorado Paid Family and Medical Leave Insurance (FAMLI)
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | CDLE, Division of Family and Medical Leave Insurance (opens in a new tab) | FAMLI Division, Employer FAQs (opens in a new tab) | |
| Status | Contributing | FAMLI Division, Employer FAQs (opens in a new tab) | |
| Total rate | 0.88%0.86% from January 1, 2027 | FAMLI Division, Employers (opens in a new tab) | |
| Employee share | Up to 0.44% | FAMLI Division, Employers (opens in a new tab) | |
| Employer share | 0.44% | FAMLI Division, Employers (opens in a new tab) | |
| Wage cap | $184,500 | FAMLI Division, Employers (opens in a new tab) | |
| Small employers | 9 or fewer employees, counted in all states: no employer shareCounted from employees on payroll in 20 or more weeks of the prior year; headcount due by February 28 | FAMLI Division, Employers (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employee | CDLE Division of Workers' Compensation, Insurance Requirements (opens in a new tab) | |
| State fund | Pinnacol Assurance (opens in a new tab) | CDLE Division of Workers' Compensation, Insurance Requirements (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Colorado
Employer taxes and contributions on one employee's pay in Colorado, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
Pay$
Pay frequency
Construction employerUses the construction new employer rate
- Employer taxes and contributions per check
- $270.92
- First check of the year
- Cost per check
- $2,578.61
- Pay included, first check
- Cost per year
- $65,829.30
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,494.38, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Colorado unemployment | 3.05% on the first $30,6003.05% for non-construction, general construction and trades; 6.285% for heavy construction | $70.38None after check 14 | $933.30 | CDLE, Unemployment Insurance: Introductory Rates (2026) (opens in a new tab); CDLE, Unemployment Insurance: Premiums (opens in a new tab) |
| Colorado Paid Family and Medical Leave Insurance (FAMLI), employer share | 0.44% on the first $184,500Small employers may owe less or none; see Paid family and medical leave above | $10.15 | $264.00 | FAMLI Division, Employers (opens in a new tab) |
| Employer taxes and contributions | $270.92 | $5,829.30 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,578.61 | $65,829.30 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
A new employer pays 3.05% for non-construction, general construction and trades; 6.285% for heavy construction. The tax applies to the first $30,600 of each employee's wages a year. The base is reset each year from average wages.
Yes: 4.4% flat. Supplemental wages: same as regular wages.
$15.16 an hour. It rises to $15.71 on January 1, 2027. Some cities and counties set their own rates. See the table above.
Yes: Colorado Paid Family and Medical Leave Insurance (FAMLI), 0.88% in total.
WORKLIO HCM
Payroll taxes calculated, deposited and filed in every state
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Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- CDLE, Unemployment Insurance: Premiums (opens in a new tab)
- Session Laws 2020, ch. 296 (SB20-207), amending C.R.S. 8-70-103(6.5) (opens in a new tab)
- CDLE, Unemployment Insurance: Introductory Rates (2026) (opens in a new tab)
- CDLE, Unemployment Insurance: Employer Liability Requirements (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions (updated September 11, 2026) (opens in a new tab)
- Colorado DOR, Colorado Wage Withholding Tax Guide (opens in a new tab)
- Colorado DOR, DR 1098 (10/21/25): 2026 Colorado Withholding Worksheet for Employers (PDF) (opens in a new tab)
- Colorado DOR, DR 0004 Colorado Employee Withholding Certificate (opens in a new tab)
- City and County of Denver, Treasury: Business Tax Information (opens in a new tab)
- CDLE, Employers (2026 Minimum Wage) (opens in a new tab)
- CDLE press release, Colorado Minimum Wage will Increase to $15.71/hour in 2027 (Aug 13, 2026) (opens in a new tab)
- CDLE, Division of Labor Standards and Statistics: Annual Minimum Wages (opens in a new tab)
- FAMLI Division, Employer FAQs (opens in a new tab)
- FAMLI Division, Employers (opens in a new tab)
- FAMLI Division, September 2026 Newsletter (via FAMLI Newsletters page) (opens in a new tab)
- CDLE Division of Workers' Compensation, Insurance Requirements (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.