Colorado Capital Gains Tax Calculator
Colorado taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Colorado income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Colorado state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Colorado Department of Revenue brackets for tax year 2025, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Colorado state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Colorado Department of Revenue so you can confirm any special rule that applies to you.
Colorado taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $880.00 in Colorado state tax, an effective rate on the gain of 4.40%.
How Colorado taxes capital gains
Colorado taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Colorado bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Colorado capital gains tax: frequently asked questions
How are capital gains taxed in Colorado?
Colorado taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Colorado income tax brackets published by the Colorado Department of Revenue. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Colorado Department of Revenue.
How much state tax will I pay on a $20,000.00 capital gain in Colorado?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $880.00 of Colorado state income tax for a single filer, an effective rate on the gain of 4.40%. Your figure depends on your total income and filing status; enter them above.
Does Colorado have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Colorado Department of Revenue; this calculator uses the ordinary income method and links the source.
What is Colorado's income tax rate?
Colorado taxes all individual taxable income at a flat rate of 4.4% for tax year 2024 and later. This rate was reduced from 4.55% by HB 23-1375, signed into law in 2023, which amended CRS §39-22-104. All filing statuses pay the same flat rate on all taxable income.
Does Colorado have a standard deduction?
Colorado conforms to the federal standard deduction. For tax year 2024, the deduction is $14,600 for single filers and married filing separately, $29,200 for married filing jointly, and $21,900 for head of household. In addition, qualifying lower-income taxpayers may claim a Personal Exemption Credit of $101 per exemption for 2024.
What is the Colorado TABOR refund and how does it affect taxes?
The Taxpayer's Bill of Rights (TABOR), added to the Colorado Constitution in 1992, limits the growth of state revenue and spending. When state revenues exceed the TABOR cap, the surplus must be refunded to taxpayers. Refunds are typically issued as temporary income tax rate reductions or direct rebates. The 4.4% flat rate itself is the standard rate; any TABOR refund mechanism operates separately.
What other major taxes does Colorado impose?
Colorado levies a statewide sales and use tax of 2.9%. Local jurisdictions (cities, counties, and special districts) add their own rates, with most combined rates falling between 6% and 10%. Colorado also imposes a corporate income tax at 4.4% and various excise taxes on fuel, tobacco, and marijuana.
Official sources
- Colorado income tax rates applied to capital gains (tax year 2025): Colorado Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Colorado Department of Revenue.