DENVER — If you’re a Colorado taxpayer who loves a tax rate reduction and TABOR refunds, we’ve got good news for you: You’re getting both in 2025.
In a report published late last month, the Colorado Office of the State Auditor reported that the state saw an excess revenue of approximately $1.4 billion in fiscal year 2024 which, when combined with what was left over from the prior year, amounted to a total of about $1.7 billion in excess revenue — enough to trigger all three of the refunding mechanisms under TABOR.
"If the state collects more revenue than is essentially allowed under the measure, there's a requirement that the excess revenue be returned to Coloradans," said Phyllis Resnick, the executive director for the Colorado Future Center at Colorado State University.
TABOR, or the Taxpayer’s Bill of Rights, was approved by voters in 1992, and puts caps on the amount of tax revenue the state can keep year-to-year. If there’s excess revenue in any given fiscal year, by law, the state government requires those excess funds to be refunded to taxpayers.
"It's never a bad day when someone says, 'we're going to give you a little extra back, you know?" Resnick said.
OK, who cares? How much am I getting back next year?
Alright, alright. Let's not delay the news any longer: Per the forecast from the Colorado Legislative Council, single filers will get an average of $326 while joint filers will get an average of $652 for tax year 2024.
Here's how those refunds break down by income level:
| Adjusted gross income | | Single filers | | Joint filers |
| $53,000 and below | $181 | $362 |
| $53,001 to $107,000 | $241 | $482 |
| $107,001 to $172,000 | $277 | $554 |
| $172,001 to $243,000 | $330 | $660 |
| $243,001 to $320,000 | $355 | $710 |
| $320,001 and above | $571 | $1,142 |
There was mention of a tax rate reduction?
Yes, there was. Thanks to a new law concerning TABOR refund mechanisms signed earlier this year by Gov. Polis, Colorado taxpayers will also see their income tax rate fall from the current 4.40% to 4.25% in 2024, as the excess revenue exceeded the $1.5 billion benchmark required to trigger that tax rate reduction.
But it's not all good news.
The report from the Office of the State Auditor also states that TABOR refunds are going to be lower, if non-existent in the coming years, due to legislation signed into law by the governor during the past legislative session, which diverts excess revenues toward things like child tax credits and a tax credit for seniors.
"Twenty-two bills enacted during the 2024 legislative session establish or extend individual income tax credits or deductions, and are expected to reduce income tax revenue by between $405 million and $1.08 billion annually during the forecast period, on an accrual accounting basis," the report states.
The income tax rate will see an increase in both 2026 and 2027 from 4.25% to 4.33%, per the report, with TABOR refunds taking a hit beginning tax year 2025 — meaning, on taxes filed in 2026 — with single filers getting a flat $41 TABOR refund and joint filers receiving only $82.
Denver7 explored multiple perspectives on the never-ending debate around TABOR back in 2018. View our report in the video below.
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