Colorado State Taxes – What You Should Know

Taxes are an integral part of everyone’s life who is earning more than the defined sum of money by the tax authorities. Therefore, you must have basic knowledge about the structure of tax law and other associated aspects. Tax law is not an easy thing to know and cope with. Firstly, authorities keep on updating the tax law regularly. Therefore, while preparing your taxes you should not use the information what you have got a year ago. Secondly, tax law changes from one state to another so are the tax relief options. So, You should get to know the tax law which is applicable in your state and if you are residing Colorado and want to know about the few aspects of the state tax law, read on…

Let’s start with income tax. In the state of Colorado the income tax rate is fixed at a particular percentage of the taxable federal income irrespective of what income level you fall into. To know the latest percentage, you should refer authentic information from IRS and other state tax authorities and these days internet is the best place to get information without much of hassle. Like other states, last date to file your taxes is 15th April. In case, 15th is weekend or holiday then next working day will be considered as the last date for filing taxes.

Another common type of tax is sales tax. In Colorado, the rate of sales tax is fixed at 2.9% for all the retail sales. However, it doesn’t mean that this would calculate the final taxable amount that you would be paying some cities and counties in Colorado might charge some additional taxes. Following are some of the special district taxes that would increase the fixed sales tax rate.

• Cultural Facilities District Tax or CD
• LID (Local Improvement District). It is applicable within the parts of boulder and southeast Jefferson counties.
• FTBL or FD is Football stadium district tax which would help to build Denver Bronco’s stadium.
• In counties such as Carbondale, Gunnison, Basalt and Glenwood springs, you would need to pay regional transport district tax or RTA.
• RTD must be paid while shopping in Denver, Boulder, Jefferson and some parts of Arapahoe, Adams, Broomfield and Douglas.

If you are not sure about the tax rates and want to get sneak peak before start shopping in any of the cities or counties in Colorado, you can visit online rate finder provided by the Department of Revenue. If you own business in Colorado, you would need to pay taxes on the furniture, computers, equipment and all the other items that help you to generate income for business directly or indirectly. The percentage of property taxes is available on the value of your property.

As a taxpayer, you have several options to pay your taxes in Colorado. You can file your tax returns electronically using system known as Netfile. You can also file taxes online. you can also make use of Telefile system and file your taxes using touch-tone telephone which will be available 24X7 in addition to Netfile system during tax season.