FAQ
Questions? We’ve got answers.
Find quick answers about the graduated income tax proposal, how it works, and what it means for Colorado families and communities.
What are the income brackets and tax rates under this measure?
| Annual Income Range | Current Tax Rate | Under #195 Tax Rate |
|---|---|---|
| $0–25,000 | 4.4% | 3.7% |
| $25,000–100,000 | 4.4% | 4.2% |
| $100,000–500,000 | 4.4% | 4.4% |
| $500,000–750,000 | 4.4% | 7.4% |
| $750,000–1,000,000 | 4.4% | 7.9% |
| Over $1,000,000 | 4.4% | 8.4% |
Estimated Revenue: $2.0 billion ($2.7 billion max)
Eligible Uses: K-12 Public School Education, Health Care, Early Child Care and Education
Why does the campaign say incomes over $500K pay more, but the table shows an average decrease?
The reason that the table shows a tax decrease for those making between $500k and $1m has to do with the interaction of Adjusted Gross Income (AGI) and Colorado Taxable Income (CTI). The income is based on AGI, which is what is used to start filing taxes. After deductions and exemptions, many people – especially those with higher incomes – are able to reduce their taxable income through those deductions and credits. Because of this, many people who make more than $500k have a taxable income lower than that, and would therefore qualify for a tax cut. Additionally, most people within that income band are clustered closer to the $500k range, making the deductions even more impactful there. SO, when you hear us say that only people making more than $500K will see a tax increase, that’s because we are talking about Colorado Taxable Income (versus Adjusted Gross Income.) It’s important to note this quirk has already been taken into account in the $2 billion estimated revenue.
How would this measure impact small businesses?
The new tax structure would apply to both individuals and corporations. So, small businesses making below $500k per year will actually see a tax cut. A new analysis by the nonpartisan Institute on Taxation and Economic Policy (ITEP) of our graduated income tax measure found that 94% of the revenue from increased corporate taxes would come from non-resident businesses. In other words, of the small portion of corporations that would pay slightly more on net (not gross) revenue of over half a million dollars in a year, the vast majority of them aren’t even based in Colorado.
How are we ensuring that the money will go towards public education, health care, and child care?
The money from the increased taxes will go into the Colorado’s Future Fund. By law, money in that fund can only be used for K-12 public education, health care, and child care. Every year there will be a public audit, report, and hearing to ensure that the funds were used appropriately. There will be significant checks and balances to make sure that the funds are used as intended by the voters.
LATEST UPDATES/NEWS
A survey from Global Strategy Group finds that a graduated income tax ballot measure
April 2026 — A survey from Global Strategy Group finds that a graduated income tax ballot measure begins the campaign with majority support and has a clear path to victory, even after voters hear a sustained set of attacks from opponents
Rally Kicks Off Graduated Income Tax Ballot Campaign
DENVER – Two hundred people rallied on the west steps of the Colorado Capitol Tuesday to kick off efforts to collect the 125,000 voter signatures necessary to get a graduated income tax question on the November ballot.
Press Release: PCF Launches 2026 Ballot Measures
Protect Colorado’s Future is advancing a fair tax system for all Coloradans with new ballot initiatives aimed at equity and opportunity.
Opinion: Why Colorado Needs a Graduated Income Tax
A Colorado Sun opinion argues for replacing the state’s flat tax with a graduated income tax that lowers rates for most residents and increases revenue needed for schools, healthcare, and other priorities.
NYT Opinion: Romney Calls to Tax the Rich
Former Senator Mitt Romney urges a bipartisan approach to raising taxes on the wealthy, arguing it’s essential for reducing inequality and stabilizing the national budget. Published in The New York Times.
Opinion: TABOR, Medicaid & the Budget
A Colorado Sun opinion piece argues that Colorado’s longstanding Taxpayer’s Bill of Rights (TABOR) — not Medicaid — is the main driver of the state’s budget challenges and calls for reform to better fund essential services.
Guest Commentary: Why Colorado Must Invest in Child Care and Tax Fairness
Guest Commentary: CSPC’s Mirla Coronado de Low makes the case in The Denver Post for why Colorado must invest in child care — and adopt a fair, graduated income tax.
How Does a Graduated Income Tax Work?
The way a government structures its income tax says a lot about its values and priorities. A regressive structure — for instance, a flat income tax like Colorado’s
TABOR: Restrictive Tax Policy Limits Economic Mobility
Fiscal policy is unusually difficult in Colorado, due to a measure known as the Taxpayer’s Bill of Rights or TABOR.
What makes up Colorado’s budget and how has it changed over the years?
Colorado’s budget is a complicated quilt of revenues and expenditures stitched together with constitutional restrictions that dictate its shape and limit its reach.
Graduated Income Tax Ballot Measures Move forward
DENVER, CO — Feb. 4, 2026 — The Colorado Title Board on Wednesday approved eightnversions of a graduated income tax ballot question proposed by Protect Colorado’s Future