Colorado voters approved Amendment 87, replacing the 4.4% flat income tax with graduated rates starting in 2027
Colorado will return to a graduated income tax for the first time since 1986. Rates fall on the first $100,000 of income and rise on income above roughly $500,000.
Key takeaways
- The AP called Amendment 87 at 10:49 a.m. on November 6, 2026, with about 51.4% voting yes.
- Six brackets run from 3.7% to 8.4% and apply to tax years starting in 2027 or later.
- Revenue estimates range from about $2 billion a year to $2.7 billion, depending on the outlet.
Colorado voters have approved Amendment 87, which strikes the state constitution's flat-rate income tax requirement and sets up graduated brackets. The Associated Press called the race at 10:49 a.m. on Friday, November 6, with the measure ahead 51.4% to 48.6%, The Colorado Sun reported. The rival Proposition 136, which would have capped the rate at 4.4%, failed.
What changes for taxpayers?
The current flat rate is 4.4%. Under the new schedule described by the Sun, income up to $25,000 is taxed at 3.7%, up to $100,000 at 4.2%, up to $500,000 at 4.4%, up to $750,000 at 7.4%, up to $1 million at 7.9% and above $1 million at 8.4%. The change applies starting with tax year 2027, and the same brackets cover business profits.
The Sun's examples: a household with $75,000 in taxable income would pay $275 less a year, while one with $550,000 would pay $1,175 more.
How much money will it raise?
Estimates differ. The Sun put the new revenue at about $2 billion a year for health care, schools and child care, while Colorado Politics reported the measure is meant to raise $2.7 billion more for state operations. Colorado Politics also noted the Denver metro counties backed the measure while many rural counties and El Paso, Douglas, Weld, Mesa and Pueblo counties voted against it.
Opponents, including business groups, far outspent supporters, according to the Sun. Gov. Jared Polis had argued the tax would hurt the economy.
What happens next
The legislature's Joint Budget Committee returns next week to build a spending plan, and supporters want interim committees to plan longer-term investments, the Sun reported. For background, see our explainer on Amendment 87 and Proposition 136.
Sources
- The Colorado Sun, “Colorado voters approve Amendment 87, imposing higher income taxes on top earners,” November 6, 2026
- Colorado Politics, “Colorado passes graduated income tax, eliminating flat rate,” November 6, 2026
Written by Action Global News from the sources above; quotations are attributed to the outlet that published them. See our editorial standards and corrections policy.
Frequently asked
When do Colorado's new income tax rates take effect?
Amendment 87 applies to tax years beginning in 2027 or later.
Who pays more under Amendment 87?
Households and businesses with income above roughly $500,000 pay more; rates fall on the first $100,000 of income.