Colorado standard income tax rate to remain at 4.40% until October 2025.
The Colorado Department of Revenue reminds employers and tax professionals that any possible temporary rate reductions under “Colo. Rev. Stat. § 39-22-627” for the 2025 income tax year cannot be determined until October 1, 2025. Therefore, wage withholding will continue at the standard income tax rate of 4.40%.
This means that, for most of 2025, employers would withhold income taxes at the 4.40% rate. The department said it would determine in October 2025 any temporary rate reductions that could reduce taxes owed for part or all of the 2025 tax year. Taxpayers and employers should be informed that revised versions of Form DR 0004 and Form DR 1098 will be made available by the end of November 2024. These forms will reflect any new adjustments to the standard deduction determined by the IRS.
Payroll Mate users must always check for and install the latest updates in order to use the latest state payroll withholding tax tables.