Denver, CO Taxes 2025
Complete local tax guide and OBBBA calculator
On This Page
Denver Tax Overview 2025
Fast-growing city with flat state income tax. High local sales tax.
Local Income Tax
0%
City/county rate
Sales Tax
8.81%
State + local
Property Tax
0.50%
Effective rate
Median Home
$590,000
Home value
No Local Income Tax!
Denver does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Denver is located in Colorado (4.4% state income tax)
💼 Denver Local Income Tax
Denver does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in Colorado) and federal income tax.
This is good news for Denver residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Denver
🛒 Denver Sales Tax 2025
The combined sales tax rate in Denver is 8.81%. This includes both the Colorado sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Denver. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Colorado law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $4.41 | $54.41 |
| $100 | $8.81 | $108.81 |
| $500 | $44.05 | $544.05 |
| $1,000 | $88.10 | $1,088.10 |
🏠 Denver Property Tax 2025
The average effective property tax rate in Denver is 0.50%. Based on the median home value of $590,000, the typical homeowner pays approximately $2,950 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Denver based on school district and other taxing authorities.
Estimated Annual Property Tax in Denver
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $1,000 | $83 | ✓ Yes |
| $300,000 | $1,500 | $125 | ✓ Yes |
| $400,000 | $2,000 | $167 | ✓ Yes |
| $500,000 | $2,500 | $208 | ✓ Yes |
| $750,000 | $3,750 | $313 | ✓ Yes |
| $1,000,000 | $5,000 | $417 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Denver Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Denver Residents
Service and hospitality workers benefit from tips and overtime deductions.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Denver resident.
Available OBBBA Deductions:
Calculate Your Denver Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Denver resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Denver?
The combined sales tax rate in Denver is 8.81%. This includes both state and local sales taxes.
Does Denver have a local income tax?
Denver has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Denver?
The average effective property tax rate in Denver is 0.50%. On a home worth $590,000, you'd pay approximately $2,950 per year.
How do OBBBA deductions benefit Denver residents?
Service and hospitality workers benefit from tips and overtime deductions. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.