November 21, 2022 Colorado voters approve measures to cut personal income tax rate retroactive to January 1, 2022, and to further limit standard and itemized deductions for highly paid starting in 2023 The Tax Foundation reports that Colorado voters approved Proposition 121, which lowers the state's personal income tax rate from 4.55% to 4.40% retroactive to January 1, 2022. The Colorado Department of Revenue confirmed the 2022 personal income tax rate in its frequently asked questions; however, the Colorado Withholding Worksheet for Employers continues to show a withholding rate of 4.55% for 2022. This is the latest in a series of Colorado personal income tax rate cuts. In 2020, Proposition 116 reduced the income tax rate to 4.55%. In 2019, the Colorado income tax rate was temporarily reduced to 4.50%. From 2000 to 2018, the Colorado income tax rate was 4.63%. Colorado voters also approve further limiting standard and itemized deductions for highly paid The Tax Foundation also reports that Colorado voters approved Proposition FF, which, effective January 1, 2023, funds a universal school meals program by further limiting standard and itemized deductions by reducing the state income tax deduction amounts for those earning $300,000 or more from $30,000 for single filers and $60,000 for joint filers to $12,000 for single filers and $16,000 for joint filers. ———————————————
Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor ——————————————— EY Payroll News Flash
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