A state panel on Wednesday gave the go ahead to a ballot measure that seeks to change Colorado’s flat rate of 4.41% to a graduated income tax, beginning in 2027, and raise billions dollars in new revenue.
Proponents hoping to change Colorado’s income tax structure from a flat rate to graduated tiers — thereby raising taxes for some brackets — walked away from a Wednesday meeting with eight ballot measures approved by the title board.
DENVER, CO — September 3, 2025 — The Protect Colorado’s Future coalition today announced plans to put a graduated income tax on the 2026 ballot. This proposal would lower taxes for 98 percent of Coloradans, while raising taxes on individuals and corporations making more than $500,000 a year.
The CEA proposal, which would raise the state spending cap set by the TABOR Amendment in the state constitution, likely faces an easier path to the ballot than the graduated income tax proposal. TABOR, which Colorado voters adopted in 1992, restricts growth in government using a formula that factors in population growth and inflation.
Proposed Initiative 181 would replace Colorado’s flat income tax with a so called “progressive” tax where taxpayers are charged higher rates based on their income.
Colorado Democrats are addressing a projected $750 million budget shortfall by enacting immediate legislation and proposing a graduated income tax amendment for the 2026 ballot. Legislative measures include eliminating certain tax breaks and adjusting reserve funds.
Now, nearly four decades later, a ballot measure campaign dubbed “Protect Colorado’s Future” (PCF) is seeking to move the state back to a progressive income tax system.
A Colorado election board gave proponents of a graduated income tax the OK for a third time Wednesday to move ahead with an initiative that’s proposed for the 2026 ballot — and members of the coalition said they’ve made enough changes to make this approval stick.
Even after three strikes, advocates for a “progressive” income tax aren’t out. Their proposal to replace Colorado’s 4.4% flat income tax rate with an array of tax brackets is once again ...
Proponents hoping to change Colorado’s income tax structure from a flat rate to graduated tiers — thereby raising taxes for some brackets — walked away from a Wednesday meeting with eight ballot measures approved by the title board.
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