Colorado payroll taxes 2026 are as close to painless as state taxes get — one flat income tax rate, no brackets, no wage tiers. But "easier" isn't the same as "simple." FAMLI contributions, a state unemployment account, and quarterly deadlines are waiting to catch you. Here's exactly what you owe, when you owe it, and where to send it.
- Colorado's flat state income tax rate is 4.40% — no brackets, no guesswork.
- FAMLI total premium is 0.90%, split 50/50 — employers under 10 employees skip their half.
- SUTA wage base is $23,800; new employers pay 1.70%.
- Most micro-businesses file withholding quarterly, not monthly.
- W-2s and annual reconciliation are due January 31, 2027.
Colorado Payroll Tax Rates at a Glance (2026)
Four obligations. One table. Bookmark it.
| Tax | Rate / Range | Wage Base | Who Pays |
|---|---|---|---|
| CO State Income Tax | 4.40% flat | All wages | Employee (withheld by employer) |
| FAMLI — Employer Share | 0.45% | SS wage base | Employers with 10+ employees only |
| FAMLI — Employee Share | 0.45% | SS wage base | All employers withhold from employee |
| CO SUTA (UI) | 0.75%–10.39% (new: 1.70%) | $23,800/employee | Employer only |
| Federal FUTA | 6.0% (less CO credit) | $7,000/employee | Employer only |
What Colorado Employers Must Withhold & Pay
State Income Tax Withholding — Flat and Simple
Every Colorado employee owes 4.40% of their wages in state income tax. You withhold it from every paycheck and remit it to the Colorado Department of Revenue via the Revenue Online portal. Employees fill out a DR 0004 — Colorado's own withholding certificate — though the federal W-4 works as a fallback if they haven't submitted one.
No brackets. No phase-outs. An employee earning $35,000 and one earning $350,000 both have 4.40% withheld. That's genuinely rare. Most states make this complicated. Colorado doesn't.
FAMLI — Colorado's Paid Leave Program
FAMLI (Family and Medical Leave Insurance) is Colorado's state-run paid leave program. The 2026 total premium is 0.90% of covered wages, split evenly: 0.45% from the employer, 0.45% withheld from the employee.
The rule that matters most for small employers: fewer than 10 employees means you're exempt from paying the employer share. You still must withhold and remit the 0.45% employee portion. Wages above the federal Social Security wage base aren't subject to FAMLI. Premiums are remitted quarterly alongside UI contributions.
Under 10 employees? You pay 0.45% FAMLI — the employee share only, not 0.90%. That gap compounds fast over a full year of payroll.
Colorado UI / SUTA — Your Unemployment Account
Colorado unemployment insurance goes to the Colorado Department of Labor and Employment (CDLE), not the IRS. The 2026 taxable wage base is $23,800 per employee. New employers pay a flat 1.70% until their claims history earns an experience rating — which can range anywhere from 0.75% to 10.39%.
Federal payroll taxes — Social Security, Medicare, FUTA — stack on top of everything above. New to all of this? Our Small Business Payroll 101 covers the federal layer in plain language. Want a contrast? See how the other side lives in our breakdown of California payroll taxes 2026.
Key Colorado Payroll Deadlines & Filing Requirements
Dave runs a Denver landscaping company. He paid his two employees for six months before realizing he'd never registered with CDLE. Penalties and back interest erased his entire Q2 savings. Don't be Dave.
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1
State Withholding Deposit Frequency — weekly, monthly, or quarterly, based on your prior-year annual withholding liability. Most micro-businesses with under 10 employees qualify for quarterly deposits. Verify your prior-year total before assuming.
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Quarterly UI Wage Reports (CDLE) — due the last day of the month after each quarter closes: Apr 30, Jul 31, Oct 31, Jan 31. File and pay at MyUI Employer+.
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3
FAMLI Premiums — remitted quarterly on the same schedule as UI. Report via the My FAMLI+ Employer portal.
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W-2s to Employees — due by January 31, 2027. Colorado also requires W-2 copies filed with the state by January 31. No separate extension window.
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DR 1094 Annual Reconciliation — the Colorado W-2 Wage Withholding Tax Return reconciles your total withholding for the year. Filed annually alongside W-2 submissions.
Most Colorado micro-businesses remit state withholding quarterly — but only if prior-year liability falls under the threshold. Confirm your actual number. New employers default to quarterly until notified otherwise.
The federal calendar runs separately. Your Form 941 quarterly federal tax returns don't sync with state deadlines. Q4 is a pile-up — see the Q4 payroll deadlines 2026 calendar before October hits.
Colorado's FAMLI program launched in 2023 — newer than most employers realize. Some small business owners aren't withholding the employee share at all. Their employees will face a surprise tax bill. FAMLI must appear as a line item on every pay stub.
How PayHRoll Simplifies Colorado Payroll
PayHRoll auto-calculates the 4.40% CO flat rate, applies the correct FAMLI split based on your headcount, and sends quarterly UI filing reminders before anything slips. Every pay stub shows the correct Colorado withholding line items — FAMLI included — so employees always know where their money went. One fewer payroll mistake to make.
Colorado payroll is four obligations: state income tax at 4.40%, FAMLI (employee share always, employer share only at 10+ employees), SUTA on a $23,800 wage base, and federal taxes on top. Register with CDLE and Revenue Online before you run your first payroll. Set quarterly calendar reminders. The flat rate makes the math easy — the deadlines are where small employers get caught.
Frequently Asked Questions
What is the Colorado state income tax rate for payroll in 2026?
Colorado has a flat state income tax rate of 4.40% in 2026. It applies to all employee wages regardless of income level — no brackets, no tier math.
Do small employers in Colorado have to pay FAMLI taxes?
Employers with fewer than 10 employees are exempt from the employer share of FAMLI (0.45%). They must still withhold and remit the employee share of 0.45% from every paycheck — that obligation applies to all Colorado employers regardless of size.
What is Colorado's 2026 unemployment insurance (SUTA) wage base?
The Colorado SUTA taxable wage base is $23,800 per employee in 2026. New employers pay 1.70%; experienced employers pay 0.75%–10.39% based on their claims history with CDLE.
Can I use the federal W-4 for Colorado state withholding?
Yes. Colorado accepts the federal W-4 as a fallback when employees haven't submitted a DR 0004. The DR 0004 is worth offering, though — it lets employees adjust state withholding independently of their federal elections, giving them more control over take-home pay.
When do Colorado employers register for a SUTA account?
The moment you hire your first employee. No grace period exists — SUTA obligations begin with the first paycheck. Register at MyUI Employer+ before you run payroll, not after.
PayHRoll calculates your CO withholding, FAMLI split, and SUTA automatically — and keeps you ahead of every quarterly deadline.
Run Colorado Payroll Free- State income tax: 4.25% flat rate on all wages — no brackets to calculate.
- FAMLI (employee share): 0.45% withheld from every paycheck; employer match required if 10+ employees.
- SUTA wage base: $23,800 per employee; new employers pay 1.70%.
- Withholding form: DR 0004 (state) or federal W-4 as fallback — offer both at onboarding.
- SUTA registration: Before the first paycheck at MyUI Employer+ — no grace period.
- Deposit schedule: Determined by prior-year withholding liability — verify with CDOR each January.
Rates current as of 2026. Verify FAMLI and SUTA rates annually — both can change each calendar year based on fund solvency and employer experience ratings.