Colorado Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Colorado state income tax as a freelancer or 1099 contractor. Colorado has a flat income tax rate of 4.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,300
Total Tax Owed
$20,691

Summary

Total Income
$75,000
Total Taxes
-$20,691
After-Tax Income
$54,309
Effective Tax Rate(on total income)
27.6%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,173
Q2 (Apr-May)Due June 15
$5,173
Q3 (Jun-Aug)Due September 15
$5,173
Q4 (Sep-Dec)Due January 15 (next year)
$5,173
Each Quarterly Payment
$5,173

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,173. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Colorado Tax Overview for Freelancers

Colorado has a flat income tax rate of 4.4%. The state uses federal taxable income as the starting point, simplifying your state return. Self-employed individuals in Colorado pay federal self-employment tax (15.3%) plus federal income tax, and Colorado state income tax on their net self-employment earnings.

Flat 4.4% rateUses federal taxable income as baseGrowing tech job market in Denver-Boulder

Self-Employment Taxes in Colorado

If you work as a freelancer or independent contractor in Colorado, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Colorado state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Colorado Income Tax for Freelancers

Colorado has a flat income tax rate of 4.4%. The state uses federal taxable income as the starting point, simplifying your state return.

Cost of Living for Freelancers in Colorado

Colorado's cost of living is about 5% above the national average, with Denver and Boulder being notably more expensive. As a freelancer in Colorado, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Colorado Freelancers

  • Colorado's flat 4.4% rate means your tax calculation is straightforward
  • Colorado uses federal taxable income — your federal deductions automatically reduce state taxes too
  • The growing Denver-Boulder tech corridor offers competitive salaries
  • Colorado has relatively moderate property taxes compared to neighboring states

Key Colorado Tax Features

  • Flat 4.4% rate
  • Uses federal taxable income as base
  • Growing tech job market in Denver-Boulder

Model Your Colorado Freelance Finances Over Time

This calculator shows your Colorado tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Colorado with Other States

WyomingNo income taxNebraska5.84% top rateKansas5.7% top rateCalifornia13.3% top rateTexasNo income taxFloridaNo income tax

Frequently Asked Questions

How is self-employment tax calculated in Colorado?
Self-employed workers in Colorado pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Colorado state income tax. Colorado has a flat income tax rate of 4.4%. The state uses federal taxable income as the starting point, simplifying your state return.
How much will I owe in quarterly taxes as a freelancer in Colorado?
Your quarterly estimated tax payment in Colorado depends on your total tax liability — including SE tax, federal income tax, and Colorado state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Colorado freelancers?
Freelancers in Colorado can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Colorado state taxable income, providing additional state tax savings.
Does Colorado have any special taxes for self-employed workers?
Colorado does not have a separate self-employment tax. However, your net self-employment income is subject to Colorado's regular income tax (4.4% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Colorado?
The decision to form an LLC or S-Corp in Colorado depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Colorado tax professional for advice specific to your situation.

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