Cost of Doing Business
Competitive environment versus the coasts
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%|
Find more detailed information about tax assessment and levies.