Prop 121: Colorado voters lower state income tax rate

MIAMI, FL – DECEMBER 22: A copy of a IRS 1040 tax form is seen at an H&R Block office on the day President Donald Trump signed the Republican tax cut…

MIAMI, FL – DECEMBER 22: A copy of a IRS 1040 tax form is seen at an H&R Block office on the day President Donald Trump signed the Republican tax cut bill in Washington, DC on December 22, 2017 in Miami, Florida. Kathy Pickering, vice president of regulatory affairs and executive director of The Tax […]

by: Colleen Flynn

Posted: Nov 8, 2022 / 10:30 PM MST

Updated: Nov 9, 2022 / 08:35 AM MST

DENVER (KDVR) — Colorado voters have voted in favor of lowering the state tax rate, according to the Associated Press.

Proposition 121 will lower Colorado’s income tax rate from 4.55% to 4.40% beginning in the 2022 tax year.

All Results Governor Senate House Ballot Measures Denver

According to Ballotpedia, the last time voters chose to lower the state income tax rate was just two years ago with Proposition 116, which changed the rate from 4.63% to 4.55%. The measure passed with approximately 58% of the vote.

The tax rate prior to 1987 was dependent on income — higher earners paid more taxes and lower earners paid less. But that was voted out with a flat rate of 5% that went into effect from 1987 until it was lowered in 1999 to 4.75%. It was again reduced in 2000 to 4.63%, where it remained until 2020.