How to use the colorado paycheck calculator
- Enter gross pay and the pay frequency.
- Choose your federal filing status. Colorado's default allowance is larger for married filing jointly.
- If you gave your employer a DR 0004, switch the certificate and enter its lines 2 and 3.
- Add 401(k) and health premiums per check, then any W-4 entries.
- Read net pay, including the FAMLI line.
Colorado withholding in two lines
Colorado income tax is 4.40% of annual wages after an allowance, and the state also takes a paid leave premium (FAMLI) of 0.44% of wages from the employee. With no DR 0004 on file the allowance is $5,500, or $11,000 for married filing jointly. A $2,800 biweekly check with a $140 401(k) deferral withholds $107.73 of Colorado income tax and $12.32 of FAMLI, leaving $2,080.17 on this colorado paycheck calculator. For other states and custom percentages, see the general paycheck calculator.
The DR 1098 worksheet, step by step
- Annualize taxable wages: the check times the number of pay periods.
- Subtract the allowance. From your DR 0004 line 2 if you filed one (even if it is zero), otherwise $11,000 for married filing jointly or qualifying surviving spouse and $5,500 for everyone else.
- Multiply by 4.40%.
- Divide by the pay periods.
- Add the extra withholding from DR 0004 line 3, if any.
There are no brackets and no rounding rule in the worksheet. Colorado does not tell employers to use the federal W-4 deductions or credits, so Steps 3 and 4 of your W-4 change federal withholding only.
FAMLI: the part that is not income tax
The Paid Family and Medical Leave Insurance (FAMLI) premium for 2026 is 0.88% of wages, shared 50/50, so 0.44% comes out of your check (Colorado FAMLI premium calculator page). It applies up to the Social Security wage base, $184,500 in 2026, so high earners see it stop late in the year. Employers with fewer than 10 employees pay no employer half, but their employees still pay the 0.44% employee share (FAMLI Small Business Corner), which this page applies in every case. The Division defines FAMLI wages as pre-tax gross wages and says a $100 pre-tax health premium out of a $1,000 salary still leaves $1,000 of wages, so this page takes the premium from your gross pay before 401(k) and section 125 deductions.
DR 0004 changes the result
Filing a DR 0004 replaces the default allowance, and an employer must use its numbers even when line 2 is zero. Using a $12,000 allowance and $10 of extra withholding on the example check gives $106.73 of Colorado tax, against $107.73 by default. A married couple using the W-4 default on a $6,200 twice-monthly check with a $310 deferral pays $238.99.
Method and sources
State rule: Colorado Department of Revenue, DR 1098 "2026 Colorado Withholding Worksheet for Employers" (10/21/25), read in full from tax.colorado.gov on 2026-11-05, together with the 2026 DR 0004 (10/29/25): 4.40%, $11,000 and $5,500 default allowances, DR 0004 lines 2 and 3; the 4.40% rate and the $5,500 and $11,000 allowances are also listed in the USDA NFC payroll bulletin on Colorado withholding. FAMLI: 0.88% total premium, 0.44% employee share, wage cap equal to the Social Security wage base, from the Colorado FAMLI premium and benefits calculator page (read via a web.archive.org copy dated January 18, 2026); the headcount rule from the FAMLI Small Business Corner (copy dated February 13, 2026); the wage definition from the FAMLI Division bulletin of September 14, 2023 (Gross Wages will Include Pre-Tax Amounts). The FAMLI Division FAQ also calls premiums post-tax deductions. Federal income tax follows IRS Publication 15-T (2026), Worksheet 1A, annual percentage method. Social Security is 6.2% up to the $184,500 wage base and Medicare is 1.45% plus 0.9% over $200,000 of wages. The 2027 DR 1098 is in draft and may change the rate structure. Not modelled: exempt W-4 claims, local occupational taxes (Denver and others) and supplemental wage rules. This is a withholding estimate for one paycheck, not a payroll quote or tax advice. Your employer's payroll system and your final tax return decide the real figures. Constants to refresh each year: rate, allowances, FAMLI rate and cap, Social Security wage base.
Worked examples
| Example | Input | Result |
|---|---|---|
| Colorado example | Gross pay this period ($): 2800; Pay frequency: biweekly; Federal filing status (W-4 Step 1c): single; Pre-tax 401(k) per pay period ($): 140; Health and other section 125 premiums per period ($): 0; Colorado withholding certificate: w4; W-4 Step 2 box checked (two jobs)?: no; W-4 Step 3 credits, per year ($): 0; W-4 Step 4(a) other income, per year ($): 0; W-4 Step 4(b) deductions, per year ($): 0; W-4 Step 4(c) extra withholding per period ($): 0; Wages already paid this year ($): 0 | Gross pay this period: $2,800.00; Pre-tax deductions: $140.00; Federal income tax withholding: $245.58; Social Security (6.2%): $173.60; Medicare (1.45%): $40.60; Colorado income tax: $107.73; Colorado FAMLI (0.44% employee share): $12.32; Net pay this period: $2,080.17; Net pay per year: $54,084.42; Total withheld as % of gross: 20.71% |
| Married, twice-monthly pay | Gross pay this period ($): 6200; Pay frequency: semimonthly; Federal filing status (W-4 Step 1c): mfj; Pre-tax 401(k) per pay period ($): 310; Health and other section 125 premiums per period ($): 0; Colorado withholding certificate: w4; W-4 Step 2 box checked (two jobs)?: no; W-4 Step 3 credits, per year ($): 0; W-4 Step 4(a) other income, per year ($): 0; W-4 Step 4(b) deductions, per year ($): 0; W-4 Step 4(c) extra withholding per period ($): 0; Wages already paid this year ($): 0 | Gross pay this period: $6,200.00; Pre-tax deductions: $310.00; Federal income tax withholding: $559.97; Social Security (6.2%): $384.40; Medicare (1.45%): $89.90; Colorado income tax: $238.99; Colorado FAMLI (0.44% employee share): $27.28; Net pay this period: $4,589.46; Net pay per year: $110,147.04; Total withheld as % of gross: 20.98% |
| DR 0004 with an allowance of $12,000 | Gross pay this period ($): 2800; Pay frequency: biweekly; Federal filing status (W-4 Step 1c): single; Pre-tax 401(k) per pay period ($): 140; Health and other section 125 premiums per period ($): 0; Colorado withholding certificate: dr0004; DR 0004 line 2: annual allowance ($): 12000; DR 0004 line 3: extra withholding per check ($): 10; W-4 Step 2 box checked (two jobs)?: no; W-4 Step 3 credits, per year ($): 0; W-4 Step 4(a) other income, per year ($): 0; W-4 Step 4(b) deductions, per year ($): 0; W-4 Step 4(c) extra withholding per period ($): 0; Wages already paid this year ($): 0 | Gross pay this period: $2,800.00; Pre-tax deductions: $140.00; Federal income tax withholding: $245.58; Social Security (6.2%): $173.60; Medicare (1.45%): $40.60; Colorado income tax: $106.73; Colorado FAMLI (0.44% employee share): $12.32; Net pay this period: $2,081.17; Net pay per year: $54,110.42; Total withheld as % of gross: 20.67% |
FAQ
What is the Colorado income tax withholding rate for 2026?
4.40% of annual wages after the allowance on the employer worksheet DR 1098.
What allowance does Colorado use if I never filed a DR 0004?
$11,000 if your W-4 filing status is married filing jointly or qualifying surviving spouse, and $5,500 otherwise.
How much is the FAMLI deduction in Colorado?
0.44% of wages for the employee in 2026 (half of a 0.88% premium), up to the $184,500 Social Security wage base. Employees of employers with fewer than 10 employees still pay the 0.44%; only the employer half is waived. The premium base is gross wages before pre-tax deductions.
Does my federal W-4 Step 3 credit lower Colorado withholding?
No. Colorado uses its own worksheet. Only a DR 0004 changes the allowance or adds extra withholding.
Is DR 0004 required?
No. It is optional, but an employer must use it if you file one, including a line 2 amount of zero.
Why is my Colorado withholding higher than the rate suggests?
Check for a DR 0004 line 3 amount or a pre-2022 request for additional withholding, which continues until a new certificate is filed.