PolicyEngine

Colorado Amendment 87

Graduated income tax · November 3, 2026 · Tax year 2027

What Amendment 87 would do

Colorado Amendment 87 would replace the 4.4% flat income tax with six rates from 3.7% to 8.4%, starting in tax year 2027.

What changes if it passes

  • Applies the same rate schedule to estates, trusts and C corporations.
  • Keeps the 4.4% rate on gains from selling a principal residence above the federal exclusion.
  • Lets the state keep and spend the added revenue as a voter-approved revenue change under TABOR.

Estimates at a glance

Change in individual income tax revenue, tax year 2027

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PolicyEngine estimate

Official estimate

+$635.7M

Legislative Council Staff, 2026 Blue Book, Table 3, individual taxpayers, 2023 incomes

Tax returns paying more / less

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Returns whose state income tax rises or falls (a joint return counts once)

Current law and if it passes

Income tax rates on Colorado taxable income, from tax year 2027
GroupCurrent lawIf it passes
$0 to $25,0004.4%3.7%
$25,000 to $100,0004.4%4.2%
$100,000 to $500,0004.4%4.4%
$500,000 to $750,0004.4%7.4%
$750,000 to $1 million4.4%7.9%
Over $1 million4.4%8.4%

Who is affected

According to the Blue Book, taxes fall for filers with Colorado taxable income below $510,834 and rise at $510,834 and above.

Key facts

Vote needed
A majority vote.
Takes effect
Tax years beginning on or after January 1, 2027.
Years modeled
Tax year 2027