Colorado Contractor Tax Guide
Verified current statutory flat rate as of 2026-09-23.
Combined Social Security and Medicare tax (Self-Employment).
Progressive marginal rates, applied separately to taxable income.
How 1099 Taxes Work in Colorado
As a freelancer, consultant, or gig worker in Colorado, you are technically your own employer. This means you aren't subject to standard W-2 withholding from a "boss." Instead, you must manually track your earnings and determine federal and any applicable state obligations. Check the Colorado Department of Revenue for state-specific rules.
Colorado-Specific Considerations
Business Entity Tax
Sole proprietors owe no state entity fee. Colorado LLCs (including single-member ones) file an annual Periodic Report with the Secretary of State for $25/year — a registration fee, not an income tax. There's no Colorado franchise or net-worth tax on pass-through entities; the state's corporate income tax applies only to C-corps.
Local Income Tax
Colorado has no general local income tax, but Denver and a handful of other Front Range cities charge a flat monthly Occupational Privilege Tax (“head tax”) on anyone doing business there. In Denver, a self-employed individual owes a flat $4.00/month business OPT for themselves, with no minimum-earnings threshold — smaller cities like Glendale, Greenwood Village, and Sheridan have their own, smaller versions.
Filing & Estimated Payments
Individual returns use Form DR 0104. Colorado follows the federal-style schedule — April 15, June 15, September 15, January 15 — via Form DR 0104EP.
Worth Knowing
Colorado's FAMLI paid family and medical leave program is automatic for employees but opt-in for the self-employed. Opting in means committing to pay the premium (0.44% of net self-employment income for 2026) for a minimum of 3 years before you're covered — a real planning decision, not a one-time signup.
Worked Example: $75,000 Colorado Contractor
On $75k of net 1099 profit (single filer, no deductions), the calculator estimates $6,504 in federal income tax, $10,597 in self-employment tax, and $2,358 in state tax — leaving about $55,540 take-home.
Sources: Colorado Secretary of State — Periodic Report Fees, Denver — Occupational Privilege Tax Guide, Colorado FAMLI — Self-Employed Workers
Quarterly Estimated Payments
Federal estimated payments generally apply when you expect to owe at least $1,000, subject to withholding and safe-harbor rules. Typical federal due dates are below; weekends and holidays can shift them. January is in the following year. State requirements vary:
Deductions and Expenses in Colorado
The single best way to lower your tax bill in Colorado is to optimize your business deductions. Common expenses you can subtract from your gross income include:
Home Office
A proportional amount of rent or mortgage for your dedicated workspace.
Software & Tools
Subscriptions, laptops, and professional design or dev tools.
Travel & Auto
Mileage driven for client meetings or local hardware purchases.
Internet & Phone
The percentage of your utility bills used primarily for business.
Official Colorado Tax Resources
Colorado Department of Revenue
Visit the official state portal to download forms, pay online, or contact support.
Calculate Your Net Pay
Ready to see an estimate of how much you'll keep after Colorado taxes? Try our free take-home estimator.
Open CalculatorDoes Colorado tax income?
Colorado has a flat income tax: everyone pays the same 4.4% rate regardless of income level. Our estimator uses this statutory rate directly.