Colorado: State Tax on Investment Income
Direct answer
In Colorado, a $10,000 long-term capital gain costs about $440 in state tax, because investment income is taxed as ordinary income at 4.40%. Federal tax is separate.
Colorado at a glance
- Investment income taxTaxed as ordinary income at a flat 4.40%
- State personal income taxFlat 4.40%
State tax on a $10,000 long-term capital gain
Estimate for a single filer. This is a close approximation using the published 2026 rate. Federal capital-gains tax is separate and not included here.
| Long-term capital gain | $10,000 |
| Colorado state tax | −$440 |
| Net after state tax | $9,560 |
Calculate your real numbers
These guides summarize published 2026 rates for planning. For your actual figures — including your filing status, holding period, and other income — use a free CompoundFig calculator:
Frequently asked questions
Does Colorado tax investment income in 2026?
Yes. In Colorado, investment income (interest, dividends, and capital gains) is taxed as ordinary income at a flat 4.40%. The federal tax is separate.
Are capital gains taxed the same as ordinary income?
At the state level, most states treat long-term capital gains as ordinary income (there is no special low state rate). The federal government does give preferential long-term capital-gains rates, but your state tax depends on that state's own rules — which is exactly what this guide summarizes.
How much state tax would I owe on a $10,000 long-term gain in Colorado?
Using the published 2026 rate, roughly $440 in state tax. Use the calculators below for your exact figure.
Where do these numbers come from?
State tax structures and rates reflect the Tax Foundation — State Individual Income Tax Rates and Brackets, 2026 (2026-08-11). Rates change yearly, so confirm with the state revenue department or a qualified tax professional before making decisions.
Sources: Tax Foundation — State Individual Income Tax Rates and Brackets, 2026 (https://taxfoundation.org/data/all/state/state-income-tax-rates-2026, retrieved 2026-08-11).
This page is for general education only and is not tax advice. State tax rates and brackets change yearly and vary by filing status, deductions, and credits. Confirm current figures with your state revenue department or a qualified tax professional. CompoundFig content is reviewed for accuracy by Priya Nair, CFP®.