Colorado Voters Will Weigh Graduated Income Tax in 2026

The proposed ballot initiative would shift from a flat tax to eight brackets, affecting individual tax bills.

Updated on Sept. 25, 2026 in Taxes

Isometric editorial illustration of eight stacked granite tiers, representing Colorado tax brackets against a stylized mountain backdrop. — Colorado voters will decide in 2026 whether to adopt Amendment 87, replacing the state's 4.4% flat income tax with an eight-tier graduated system. AI Illustration. Upload story photo >

Live Poll

Do you support replacing Colorado's flat income tax with a graduated income tax system?

Colorado voters will decide in November 2026 whether to replace the current 4.4% flat state income tax with a new graduated tax system. This ballot measure, known as Amendment 87, would adjust tax rates for individuals and businesses based on income levels.

Why it matters

The proposal seeks to raise an estimated $2.7 billion in additional annual state revenue to fund services like healthcare and education. Proponents argue this structure addresses funding needs, while opponents contend it could negatively impact state economic competitiveness.

Amendment 87 would transition Colorado from a 4.4% flat tax to eight ascending brackets, with an income threshold of $500,000 for rate changes. Proponents project that 97% of Colorado households would see a tax decrease under the new system.

The players

Protect Colorado's Future

An organization advocating for the ballot initiative that provides a tax calculator for residents to estimate potential impacts.

The details

The initiative proposes a graduated structure that replaces the current single flat rate for all taxpayers. Under this plan, those earning below $500,000 annually would see a decrease in their tax burden, while individuals and companies with income exceeding that threshold would face higher rates. The measure also includes modifications to the Taxpayer Bill of Rights to accommodate these changes.

Voters will cast ballots on Amendment 87 in November 2026.

Money Landscape

This proposal represents a major departure from the state's traditional reliance on a flat tax rate. It sits within a broader cycle of fiscal policy debates regarding how states balance public service funding against established tax growth limitations.

Residents can utilize the Protect Colorado's Future tax calculator to compare how the proposed eight-bracket system might change their specific tax liability versus current rates. Households should discuss the potential long-term budgetary impact with a qualified tax professional.

The takeaway

This ballot initiative proposes a fundamental shift in how the state collects income tax by moving toward a graduated system. Consider monitoring state legislative updates regarding Amendment 87 as the November 2026 election approaches.