2026 Colorado Amendment 87
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November 3, 2026
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Graduated Income Tax |
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2026 Colorado Amendment 87 is a proposed ballot measure that will appear before voters in Colorado during the 2026 general election. The measure aims to replace Colorado's flat income tax with a graduated income tax system, where taxpayers are subject to different rates on different portions of their earnings.
Background
[edit]The amendment is backed by the Bell Policy Center, a Denver-based liberal think tank,[1] and Protect Colorado's Future, an organizing coalition.[2] The initiative qualified for the ballot after meeting the minimum requirements of at least 125,000 voter signatures in support, with the signatures of at least 2 percent of the voters in each of the state's 35 state senate districts.[1]
Colorado is one of 15 U.S. states with a flat income tax rate.[2] The state previously used a gradual income tax rate, switching to the flat rate in 1987.[3]
Contents
[edit]The proposed amendment will appear on the ballot as follows:[4]
Shall state taxes be increased $2.7 billion annually, in order to increase or improve levels of public services, including k-12 public school education, health care, and early child care and education services, by an amendment to the Colorado constitution and a change to the Colorado revised statutes repealing existing law and creating new law to replace the uniform state income tax rate with a graduated income tax structure, and, in connection therewith, amending the taxpayer’s bill of rights to eliminate the constitutional requirement for all taxable net income to be taxed at one rate with no added tax on income; establishing various income tax rates based on the amount of taxable income earned by individuals, estates, trusts, and corporations, while maintaining the current 4.4% tax on income from the sale of a principal residence, which will result in the estimated change in income taxes owed by individuals as identified in the following table; and authorizing the state to retain and spend any increased revenue from the new tax structure, as a voter-approved revenue change, to supplement current levels of funding for k-12 public school education, health care, and early child care and education programs?
Impact
[edit]The amendment would raise income taxes on individuals and businesses earning more than $506,000 in annual taxable income.[1] The Bell Policy Center has claimed that the amendment would lower income tax for 97 percent of Colorado residents and 95 percent of Colorado businesses.[2]
New tax rates
[edit]If the amendment passes, the state would switch from a 4.4 percent flat income tax rate to a graduated income tax system using the following marginal tax rates:
| Federal taxable income | Marginal tax rate[5] |
|---|---|
| <$25,000 | 3.7% |
| $25,000 – $100,000 | 4.2% |
| $100,000 – $500,000 | 4.4% |
| $500,000 – $750,000 | 7.4% |
| $750,000 – $1,000,000 | 7.9% |
| $1,000,000+ | 8.4% |
Under the graduated income tax system, taxpayers would be subject to different rates on different portions of their earnings. A resident with $400,000 in federal taxable income would pay 3.70 percent on the amount up to $25,000, 4.20 percent on the amount greater than $25,000 up to $100,000, and 4.40 percent on the amount greater than $100,000.
Endorsements
[edit]- Statewide officials
- Dave Young, treasurer of Colorado (2019–present) (Democratic)[2]
- Labor unions
- Organizations
- League of Women Voters of Colorado[7]
- ProgressNow Colorado[8]
- Government bodies
- Political parties
References
[edit]- 1 2 3 Paul, Jesse (September 3, 2025). "Liberal groups want to change Colorado's income tax structure. Can they get their proposal before voters?". The Colorado Sun. Retrieved June 21, 2026.
- 1 2 3 4 Ventrelli, Marissa (June 10, 2026). "Flat or graduated income tax? Colorado groups push dueling measures for November election". Colorado Politics. Retrieved June 21, 2026.
- ↑ "Coloradans launch 2026 ballot push for graduated state income tax". Colorado Center on Law and Policy. September 3, 2025. Retrieved June 21, 2026.
- ↑ "2026 State Ballot Information Booklet" (PDF). Colorado General Assembly. September 10, 2026. Retrieved October 5, 2026.
- ↑ "How Initiative 195's Progressive Tax Affects Colorado's Economy". Common Sense Institute. Retrieved June 21, 2026.
- ↑ "SEIU Endorsements". SEIU Colorado. April 28, 2026. Retrieved September 27, 2026.
- ↑ "Where The League Stands". League of Women Voters of Colorado. Retrieved September 27, 2026.
- ↑ "Vote YES on Amendment 87 to Protect Colorado's Future". ProgressNowCO. Retrieved September 27, 2026.
- ↑ "Support for and Opposition to State Ballot Measures". Boulder County. Retrieved August 30, 2026.
- ↑ "How to Vote on Colorado's 2026 Ballot Measures". Colorado Democratic Party. Retrieved September 27, 2026.
- 1 2 "How the ballot proposal to overhaul Colorado taxes could change your tax bill — and who pays more". The Denver Post. September 20, 2026. Retrieved September 27, 2026.
- ↑ Tann, Robert (March 18, 2026). "Supporters of Colorado measure to raise taxes on higher earners begin collecting signatures for 2026 ballot". Vail Daily. Retrieved June 21, 2026.
- ↑ "EDITORIAL: The high cost of a 'progressive' tax hike". The Colorado Springs Gazette. June 17, 2026. Retrieved June 21, 2026.
- ↑ "EDITORIAL: The high cost of a 'progressive' tax hike". The Denver Gazette. June 17, 2026. Retrieved June 21, 2026.
- ↑ "Colorado Joins the Tax Increase Line". The Wall Street Journal. May 13, 2026. Retrieved June 21, 2026.