Colorado Side Hustle Tax Calculator
Calculate your Colorado state tax (4.40%), federal tax, and self-employment tax on 1099 income.
Last updated: January 2026 · Data from IRS Rev Proc 2024-40
Colorado side hustlers enjoy a straightforward flat tax system with a competitive 4.4% state income tax rate for 2025. The Centennial State has no local income taxes, making tax planning simpler than neighboring states.
How Side Hustle Taxes Work in Colorado
Colorado uses a simple flat tax system:
**Colorado state tax (2025):** - Flat rate: 4.40% on all taxable income - No brackets—everyone pays the same percentage
**No local income taxes:** - Denver and all Colorado cities have no income taxes - Colorado's TABOR makes adding new taxes difficult
Colorado's 4.4% is lower than California (9.3%+) and competitive in the region.
What Colorado Side Hustlers Owe
Let's say you're a single filer in Denver with a $58,000 W-2 job and $16,000 in side hustle income from freelance photography, with $2,500 in business expenses.
**Your estimated taxes on the side hustle:** - Net self-employment income: $13,500 - Federal SE tax (15.3% of 92.35%): ~$1,909 - Federal income tax on side income: ~$2,970 (22% bracket) - Colorado state tax (4.4%): ~$594 - **Total additional tax: ~$5,473**
Colorado Tax Deadlines 2025
Colorado estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026
Use Form DR 0104EP for Colorado estimated tax payments.
Common Deductions for Colorado Freelancers
Colorado deductions for side hustlers: - Colorado taxable income starts with federal taxable income - All Schedule C business expenses automatically reduce Colorado taxes - Home office deduction - Business vehicle mileage (67 cents/mile for 2025)
Colorado Side Hustle Tax FAQ
What is Colorado's tax rate on side hustle income?
Colorado has a flat 4.4% income tax rate on all taxable income including self-employment earnings. There are no local income taxes.
Does Denver have a city income tax?
No, Denver and all Colorado cities do not have local income taxes. You only pay the state 4.4% flat rate plus federal taxes.
Is Colorado's tax rate going down?
Colorado's rate has been reduced in recent years—from 4.55% in 2022 to 4.4% now. TABOR requires voter approval for tax increases.
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This calculator provides estimates only. For personalized advice, consult a qualified tax professional.
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