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CO

Colorado Nanny Tax Guide

Colorado has a flat income tax rate and an active Paid Family and Medical Leave Insurance (FAMLI) program. Denver residents or workers may also owe local occupational privilege tax.

State Income Tax
State Unemployment
Disability Insurance
Paid Family Leave

Minimum Wage

$14.81/hour

SUTA Rate Range

0.0% - 11.01%

Key Things to Know

  • Flat state income tax of 4.4%
  • Paid Family and Medical Leave (FAMLI) program active
  • State minimum wage is $14.81/hour
  • Denver has local occupational privilege tax

Colorado Employer Requirements

State Income Tax

Colorado uses a flat 4.4% income tax rate. This makes calculating withholding straightforward compared to states with progressive brackets.

FAMLI (Paid Family Leave)

Colorado's FAMLI program requires both employer and employee contributions. Employees pay 0.4% of wages, matched by employers. Benefits provide up to 12 weeks of paid leave.

State Unemployment Insurance

Employers pay SUI tax on the first $23,800 of wages. New employer rate is 1.72%, with rates ranging from 0.0% to 11.01% based on experience.

Local Taxes (Denver)

Denver imposes an Occupational Privilege Tax (OPT) of $5.75/month on employees. Employers also pay $4.00/month per employee.

What will it cost?

Wondering what you'll actually owe as a Colorado employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of February 2026Sources: Colorado tax agency, IRS Publication 926

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