Self-employment tax in Colorado
Colorado taxes self-employed income at the verified 2025 rate of 4.4%, starting from federal taxable income - Colorado has no separate state standard deduction - on top of federal self-employment and income tax. The 2026 Colorado rate is unverified, so this page uses the 2025 rate and labels it as 2025.
What a Colorado freelancer owes
- Federal self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare).
- Federal income tax on your net profit (after the deductible half of SE tax).
- Colorado income tax at 4.4% (verified 2025 rate; 2026 rate unverified) on federal taxable income, with no separate Colorado standard deduction.
Estimate your Colorado taxes
Free 1099 self-employment tax calculator — add Colorado's 4.4% flat state rate. No sign-up.
Enter Colorado's 4.4% flat in the State Tax field for a full estimate.
States with no income tax are set to 0%. Estimate only — adjust for local taxes.
Estimates use 2026 US federal figures (IRS Rev. Proc. 2025-32): self-employment tax of 15.3% (12.4% Social Security up to the $184,500 wage base + 2.9% Medicare) plus federal income tax on your net profit after the standard deduction. State and local taxes are only included if you set a state rate above. Simplified estimate for planning only — not tax advice.
Guide: Self-employment tax in Colorado — 4.4% on federal taxable income
Colorado taxes freelancers at a flat rate, but the base is unusual: it starts from your federal return. The rate is 4.4% for tax year 2025 (2022: 4.4%, 2023: 4.4%, 2024: 4.25% temporary reduction, 2025: 4.4%). The 2026 Colorado rate is unverified, so this page uses the verified 2025 rate and labels it as 2025. Colorado has no separate state standard deduction: Colorado tax starts from federal taxable income, plus additions minus subtractions.
The federal layer is the same in every state. Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit, and it applies once your net earnings reach $400. The Social Security wage base is $184,500 for 2026; Medicare is uncapped. The deduction for half of your SE tax lowers your income tax only — it does not lower your net earnings or your SE tax.
Three Colorado wrinkles are worth knowing. High earners: for 2023 through 2025, federal AGI over $300,000 means adding back federal deductions in excess of $12,000 single / $16,000 joint, and the guide lists that limit dropping to $1,000 / $2,000 for 2026 and later. Pass-through owners can consider the elective SALT Parity Act entity-level payment (Form DR 0106 or DR 1705). And while there is no local income tax, some cities levy an Occupational Privilege Tax (OPT, or head tax): verified for Denver, it applies to individuals performing services in Denver earning $500 or more in a calendar month, with an Employee OPT of $5.75 per month and a Business OPT of $4.00 per month, which the business also pays for each owner, partner, or manager engaged in business in Denver. OPT rates for other Colorado cities (Glendale, Greenwood Village, Sheridan) are unverified.
Worked example. Because Colorado starts from federal taxable income, take a freelancer whose federal taxable income is $50,000. Colorado tax at the verified 2025 rate is $50,000 x 4.4% = $2,200. Separately, on a $60,000 profit, federal SE tax is $60,000 x 92.35% = $55,410, x 15.3% = $8,477.73. A Denver freelancer would also owe Business OPT of $4.00 per month, or $48 per year, as a flat line — not folded into the percentage above.
Colorado estimated payments use Form DR 0104EP, due April 15, June 15, and September 15, and January 15. Estimates are generally required if you expect to owe more than $1,000 of net tax after withholding and credits. Keep every receipt and invoice in MoneyFeed via WhatsApp, so your federal taxable income — the Colorado starting point — is ready when each estimate comes due.
FAQ
The verified rate is 4.4% for tax year 2025 (2022: 4.4%, 2023: 4.4%, 2024: 4.25% temporary reduction, 2025: 4.4%). The 2026 Colorado rate is unverified, so this page uses the verified 2025 rate and labels it as 2025.
No separate one. Colorado tax starts from federal taxable income, plus additions minus subtractions — so your federal deductions already shape the Colorado base.
There is no local income tax identified, but some cities levy an Occupational Privilege Tax (OPT, or head tax). Verified for Denver: it applies to individuals performing services in Denver earning $500 or more in a calendar month, with an Employee OPT of $5.75 per month and a Business OPT of $4.00 per month, which the business also pays for each owner, partner, or manager engaged in business in Denver. Rates for other Colorado cities are unverified.
An elective entity-level payment for pass-throughs, made on Form DR 0106 or DR 1705. It is an election for the entity, not something a sole proprietor pays by default.
Form DR 0104EP installments are due April 15, June 15, and September 15, and January 15. Estimates are generally required if you expect to owe more than $1,000 of net tax after withholding and credits.
Colorado freelancer tax — FAQ
Do freelancers pay state income tax in Colorado?
Yes, at 4.4% for tax year 2025 (2022: 4.4%, 2023: 4.4%, 2024: 4.25% temporary reduction, 2025: 4.4%) - the 2026 rate is unverified, so this page uses the verified 2025 rate and labels it as 2025. Colorado tax starts from federal taxable income, so there is no separate Colorado standard deduction.
Do I owe local tax in Colorado?
There is no local income tax identified, but some cities levy an Occupational Privilege Tax (OPT, or head tax). Verified for Denver: it applies to individuals performing services in Denver earning $500 or more in a calendar month, with a Business OPT of $4.00 per month, which the business also pays for each owner, partner, or manager engaged in business in Denver. Rates for other Colorado cities are unverified.
How do I estimate my Colorado 1099 taxes?
Use the free MoneyFeed 1099 calculator for the federal estimate, then add Colorado tax at 4.4% (2025 rate) on your federal taxable income.
Figures are 2026 headline guidance for freelancers and the self-employed, not tax advice. Check current IRS and state rules or a CPA for your situation.