Overview of Taxes in Colorado
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Paying taxes funds public services and goods. The state government taxes individuals and businesses. Residents and non-residents pay these taxes. You must pay them on income, property, and other taxable assets.
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Colorado residents pay taxes on all income. Non-residents pay taxes on Colorado income. Part-year residents also pay taxes on Colorado income. Retirees pay taxes on certain retirement income. However, some income is tax exempt.
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The state income tax rate is 4.5%. It ranges from 4.55% to 4.63% based on income. Corporations pay 4.63%. Non-residents pay a flat 4.63% rate. Taxpayers can use deductions and credits to lower tax liability.
Importance of Understanding Tax Laws
- Filing taxes funds state programs and services. Understanding tax laws is crucial, whether you currently live in Colorado or plan to move there. Income tax affects residents, part-year residents, and non-residents.
Consequences of Late Tax Filing
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What happens if you file taxes late in Colorado?
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Will I get in trouble if I don’t file my tax return?