How to Pay Colorado State Income Tax
Where Colorado State Income Tax Goes and How to Send It
Colorado state income tax is collected by the Colorado Department of Revenue. If you owe tax when you file your return, you can pay directly to the state through their website, by mail, or through a third-party payment processor. The state accepts checks, electronic bank transfers (ACH), credit cards, and debit cards—though credit and debit card payments charge a processing fee that the state does not charge for ACH or check payments.
Most people who work in Colorado have tax withheld from their paychecks automatically, so they do not owe anything when they file. But if you are self-employed, have investment income, or did not have enough withheld, you will owe a balance. The amount you owe depends on your income and filing status; Colorado's tax rate ranges from 4.4% to 5.55% depending on your income bracket.
Key Takeaways
- You can pay Colorado income tax online through the Department of Revenue website, by mail with a check, or through a payment processor—each method has different fees and processing times.
- ACH bank transfers and checks have no processing fee, while credit and debit card payments charge a fee that varies by processor.
- If you owe tax, payment is due by the same date your return is due—typically April 15, unless you file an extension.
- The Department of Revenue can set up a payment plan if you cannot pay in full, and penalties and interest accrue on unpaid balances.
- Estimated tax payments are required if you expect to owe $500 or more and are not having tax withheld from regular income.
Paying Online Through the Colorado Department of Revenue
The Colorado Department of Revenue operates a payment portal where you can pay your state income tax balance using ACH, credit card, or debit card. To pay online, you will need your Social Security number or federal employer identification number, the tax year you are paying for, and the amount owed. You can access the payment system through the Department of Revenue website under "Pay Your Tax."
ACH payments (direct transfers from your bank account) typically process within one to three business days and carry no fee. Credit and debit card payments process immediately but charge a convenience fee—the exact percentage varies depending on which third-party processor handles your payment. The processor will show you the fee before you confirm the payment, so you know the total cost.
Online payments can be made any time, including evenings and weekends. If you pay by the due date, your payment counts as on-time even if it processes a day or two later, as long as you initiated it by the deadline.
Paying by Mail or Phone
You can mail a check to the Colorado Department of Revenue along with your tax return or a payment voucher. Include your name, Social Security number, tax year, and the amount of the payment on the check. Mail it to the address listed on the Department of Revenue website for your specific return type (individual income tax, corporate tax, etc.).
Checks should be mailed early enough to arrive by the due date. The postmark date counts as your payment date, so a check postmarked by April 15 is considered on-time even if it arrives later. However, if the check is lost or delayed, you remain responsible for any penalties and interest that accrue.
The Department of Revenue does not accept payment by phone directly. If you need to pay by phone, you must use a third-party payment processor, which will charge a fee. You can find approved processors on the Department of Revenue website.
Payment Due Dates and Extensions
Colorado income tax is due on the same date as your federal return—typically April 15 for the prior tax year. If April 15 falls on a weekend or holiday, the due date moves to the next business day. If you file a federal extension (Form 4868), your Colorado return is automatically extended to the same date, usually October 15.
An extension gives you more time to file your return, but it does not extend the time to pay. If you owe tax, interest and penalties begin accruing on any unpaid balance after April 15, even if you have an extension to file. You can estimate what you owe and pay it by April 15 to avoid penalties, then file your actual return later.
If you miss the due date, penalties and interest are calculated from the original due date. The penalty for late payment is typically 0.5% of the unpaid tax per month (up to 25% total), plus interest at a rate set by the state each year.
Setting Up a Payment Plan if You Cannot Pay in Full
If you owe tax but cannot pay the full amount by the due date, the Colorado Department of Revenue offers payment plans. You can request a plan by contacting the department directly or through their website. A payment plan allows you to pay your balance in installments over time, though interest and penalties continue to accrue on the unpaid portion.
The terms of a payment plan depend on the amount owed and your circumstances. Short-term plans (30 days or less) typically have no setup fee, while longer plans may include a fee. You must make payments on time; if you miss a payment, the plan can be cancelled and the full balance becomes due immediately.
Payment plans are not the same as an offer in compromise (a settlement for less than you owe). The Department of Revenue rarely accepts offers in compromise for income tax, but you can ask about your options when you contact them about a payment plan.
Estimated Tax Payments for Self-Employed and Other Taxpayers
If you are self-employed, have investment income, or do not have enough tax withheld from your regular income, you may need to make estimated tax payments throughout the year. Colorado requires estimated payments if you expect to owe $500 or more when you file your return.
Estimated payments are due on the same schedule as federal estimated payments: April 15, June 15, September 15, and January 15 of the following year. You can pay estimated tax online through the Department of Revenue website using the same payment methods as regular tax payments. If you miss a payment, you may owe a penalty for underpayment, even if you pay the full amount when you file your return.
You do not have to make estimated payments if you have enough tax withheld from W-2 wages or other income. Some people combine withholding and estimated payments to spread their tax liability throughout the year.
What Happens if You Do Not Pay
If you do not pay your Colorado income tax by the due date, penalties and interest begin accruing immediately. The state can place a lien on your property, garnish your wages, or intercept your federal tax refund to collect the debt. The Department of Revenue can also revoke your driver's license or professional licenses if you owe a large amount and do not respond to collection notices.
The longer you wait to pay, the more you owe in penalties and interest. Contacting the Department of Revenue to set up a payment plan or discuss your situation is always better than ignoring the debt. The state is often willing to work with you if you reach out before they have to pursue collection action.
Frequently Asked Questions
Can I pay Colorado state income tax with a credit card?
Yes, but you will pay a convenience fee on top of your tax bill. The fee is charged by the third-party processor and varies, typically ranging from 1.5% to 3% of the payment amount. ACH or check payments have no fee, so they are cheaper if you have the option.
What if I overpaid my Colorado income tax?
If you overpaid, you will receive a refund. The state will mail a check or, if you provided direct deposit information on your return, deposit the refund to your bank account. Refunds typically take four to six weeks to arrive, though it can take longer during busy filing season.
Do I have to pay Colorado income tax if I live out of state but work in Colorado?
Yes, Colorado taxes income earned within the state, regardless of where you live. You may also owe tax to your home state, depending on its rules. Some states offer credits for taxes paid to other states to avoid double taxation, so check your home state's rules.
Can I pay someone else's Colorado income tax for them?
Yes, you can pay on behalf of another person if you have their Social Security number and tax year information. The payment will be credited to their account. However, only the person who owes the tax can set up a payment plan or request a refund.
What if I owe both federal and Colorado income tax?
Federal and Colorado taxes are separate debts, and you must pay each to the correct agency. Payments to the IRS do not reduce what you owe Colorado, and vice versa. You can pay both online through their respective websites, or pay one by mail and one online if you prefer.