Currently, Colorado taxes millionaires, billionaires and corporations and at the exact same rate as regular working people. Under this system, the wealthiest 1% of Coloradans — those making over $850,000 per year — pay just 7% of their income in combined state and local taxes annually, while 60% of Coloradans who make between $25,000 and $150,000 per year pay between 9-10%. Under Initiative 195, for a proposed graduated tax system, 97% of Coloradans would pay less in state taxes while the top 3% of citizens and businesses who make $500,000/year or more, would pay a little bit more in state taxes. The measure is expected to generate about $2 billion more state revenue annually. The funds would be dedicated to helping support public schools, health care, child care systems and “other essential public services available to all Coloradans.”(pdf of proposal text)
Initiative 195 won’t affect TABOR refunds
Despite what some are saying, a graduated state income tax system will not reduce or otherwise impact TABOR refunds, because any revenue raised from Colorado’s state income tax, 2.9% sales tax, and other taxes and fees that exceeds the TABOR spending limit will still be required to be refunded to taxpayers.
Under Initiative 195, the current sflat 4.4% state tax system would be changed to a graduated income tax with the following rate tiers:
- For federal taxable income less than or equal to $25,000, the tax would be 3.70%.
- For federal taxable income greater than $25,000 and less than or equal to $100,000, the tax would be:
- 3.70% on the amount up to $25,000;
- 4.20% on the amount greater than $25,000 and up to $100,000; and
- 4.40% on the amount greater than $100,000.
- For federal taxable income greater than $500,000, but less than or equal to $750,000, the tax would be:
- 3.70% on the amount up to $25,000;
- 4.20% on the amount greater than $25,000 up to $100,000;
- 4.40% on the amount greater than $100,000 up to $500,000; and
- 7.40% on the amount greater than $500,000.
- 3.70% on the amount up to $25,000;
- 4.20% on the amount greater than $25,000 up to $100,000;
- 4.40% on the amount greater than $100,000 up to $500,000;
- 7.40% on the amount greater than $500,000; and
- 7.90% on the amount over $750,000.
- For federal taxable income greater than $1 million, the tax would be:
- 3.70% on the amount up to $25,000;
- 4.20% on the amount greater than $25,000 up to $100,000;
- 4.40% on the amount greater than $100,000 up to $500,000;
- 7.40% on the amount greater than $500,000;
- 7.90% on the amount over $750,000; and
- 8.40% on the amount greater than $1 million.
27 other states and Washington, D.C. already have graduated state income tax systems.
The proposed change would start in Colorado on January 1, 2027.
For additional information go to ProtectColoradosFuture.com.
Where can you sign a petition for Initiative 195?
You can sign the petition to help get Initiative 195 on the November ballot at Western Colorado Alliance, 601 N. 1st Street, Grand Junction, 81501, Monday-Thursday 9:00 a.m. – 5:00 p.m.and Friday, 9:00 a.m. o 1:00 p.m. Phone: 970.579.5380. (They are in the building that housed the old Pizza Hut on First Street, located between Thai No. 9 and the Tile Meister.) Hurry and sign, because petitions are due August 3, 2026.
Other times and places where the petition will be available to sign:
- Fruita Farmer’s Market, July 4
- Palisade Market, July 5
- Here and Now Tour, July 8, 5:30PM-7:30PM
- Market on Main in Grand Junction on July 9
- Ridgway Concert Series July 9 and July 16
Petitions are due August 3, 2026.