How Denver taxes your pay
Denver's occupational privilege tax is a flat charge per month, not a percentage of pay, so it costs a nurse and a surgeon the same. It follows the job: anyone who works in Denver and earns over the monthly threshold pays it, wherever they live, and someone who lives in Denver but works in Lakewood does not.
The employer pays a separate business share on top, which never shows on your stub. Aurora, Glendale, Greenwood Village and Sheridan charge their own versions of the tax; those are not in our tables, so pick "Other / not listed" if you work in one of them.
Denver tax rates for 2026
- Denver occupational privilege tax: $5.75 a month in any month you earn at least $500 for work done here, whatever you earn above that.
| Salary | Live and work here | Work here, live elsewhere in Colorado | Take-home, living here | Take-home with no local tax |
|---|---|---|---|---|
| $40,000 | $69 | $69 | $32,557 | $32,626 |
| $60,000 | $69 | $69 | $47,659 | $47,728 |
| $75,000 | $69 | $69 | $58,135 | $58,204 |
| $100,000 | $69 | $69 | $74,513 | $74,582 |
| $150,000 | $69 | $69 | $106,704 | $106,773 |
| $250,000 | $69 | $69 | $171,543 | $171,612 |
The commuter column assumes a home elsewhere in Colorado with no local tax of its own; a home city or county with its own tax can add to it or credit it.
Worked example: the Colorado median wage in Denver
The median annual wage in Colorado is $59,800: half of all jobs pay more and half pay less, in the Bureau of Labor Statistics wage survey for May 2025 (all occupations; survey date May 31, 2025). Paid every two weeks as a single filer, with no 401(k) or benefits, that salary works out like this in Denver, Colorado.
| Line | Each paycheck | Year |
|---|---|---|
| Gross pay | $2,300.00 | $59,800.00 |
| Federal income tax | $192.15 | $4,995.90 |
| Social Security | $142.60 | $3,707.60 |
| Medicare | $33.35 | $867.10 |
| Colorado income tax | $91.89 | $2,389.14 |
| Denver occupational privilege tax | $5.75 | $69.00 |
| CO FAMLI (employee) | $10.12 | $263.12 |
| Take-home pay | $1,824.14 | $47,508.14 |
You keep 79.4% of gross pay. Of the $12,292 withheld, federal income tax is the largest part at $4,996, followed by Social Security at $3,708. The year is not 26 times the first paycheck because a limit or threshold is reached during the year; the year column adds up every paycheck.
Without the local tax the same salary would leave $47,577 a year in Colorado, so living and working in Denver costs $69 a year, or 0.1% of pay.
Denver paycheck questions
How much is Denver local tax on $75,000 a year?
$69 for the year if you live and work in Denver, single and paid every two weeks. That leaves $58,135 after all taxes, against $58,204 with no local tax.
Do I pay Denver tax if I live there but work somewhere else?
No. Denver's tax follows the job, so pay for work done outside it is not taxed here.
What is the Colorado median wage after tax in Denver?
The median wage in Colorado is $59,800 (Bureau of Labor Statistics, May 2025). Living and working in Denver, that leaves $47,508 a year after federal, Colorado, FICA and $69 of local tax.
What does a paycheck look like in Denver?
At the Colorado median wage, paid every two weeks, each paycheck is $2,300.00 before tax and $1,824.14 after it. $5.75 of that goes to Denver, next to $192.15 of federal income tax and $91.89 for Colorado.
How much Denver tax is withheld on $250,000?
$69 for the year living and working there, which leaves $171,543 after every tax, against $171,612 with no local tax.
Sources
Rules checked . How we calculate.