Quick Colorado Tax Stats
| Tax Type | Rate / Info |
|---|---|
| Income Tax | 4.40% flat state income tax |
| Sales Tax | 2.9% statewide base; ~7%–9%+ combined in many cities |
| Jock Tax | Colorado taxes income earned from work performed in the state |
| Cost of Living (Range) | $95,000 – $185,000+ annual (Denver / Boulder lifestyle) |
| Average Home Price | ~$550,000 – $600,000 statewide; higher in Boulder |
Income Tax in Colorado
Colorado uses a flat 4.40% state income tax on taxable income.
Structure:
- One flat rate
- Applies to wages, bonuses, sponsors, and all/any other gross income
- Residents taxed on worldwide income
For professional athletes:
- Lower than high-tax states (CA, NY, NJ, MD)
- Higher than zero-income-tax states (TX, FL, NV)
- Predictable modeling due to flat structure
Example
An NBA player earning $25+ million while domiciled in Colorado would owe ~$1,100,000 in state income tax.
Compared to the same gross income earned in the state of California where the income tax rate is the highest in the U.S at 13.3% for top earners, tax liability could exceed $3 million, a difference of ~$2 million net per year.
Over a 4-year contract, that delta can exceed $8+ million in retained net income. Colorado sits in the moderate-efficiency tier.
Sales Tax
Colorado’s statewide base sales tax is 2.9%, relatively low at the state level.
However, local governments add substantial local sales taxes, bringing combined rates to:
- ~8.81% in Denver
- ~8.845% in Boulder
- ~8.2% in Colorado Springs
For high-income athletes:
- Local rate variation matters
- High-value purchases materially increase consumption tax exposure
Example
Buying a $200,000 vehicle in Denver at ~8.81% combined rate would trigger roughly $17,620 in sales tax.
While the base rate is low, combined urban rates are comparable to many other states and is not as nice as somewhere like Oregon (no sales tax).
Jock Tax
Colorado taxes income earned from work performed in the state.
- Visiting athletes owe Colorado income tax on duty days played in-state.
- Colorado-domiciled athletes owe 4.40% on worldwide income.
Example
An NFL player playing an away game against the Denver Broncos will owe Colorado income tax on the portion of salary allocated to that game.
Colorado residents must also pay tax on total income, with credits typically applied for taxes paid to other states.
Flat-rate structure simplifies modeling but does not eliminate multi-state exposure.
Cost of Living and Housing
Colorado’s cost of living has risen significantly over the past decade, particularly in the Front Range area (Denver, Boulder, bigger cities).
Lifestyle budgets
- Denver metro: $110k–$185k+ annually depending on housing and discretionary spending
- Boulder: often higher due to limited housing supply
- Mountain resort areas (Aspen / Vail): substantially higher
Housing
- Statewide median home price: ~$550k–$600k
- Denver 3-bed/2-bath: ~$600k+
- Boulder: $800k–$1+ million common
- Resort luxury markets: multi-million standard
Compared to Arizona or Nevada, Colorado has higher housing costs but maintains a moderate income tax rate.
Residency Rules
Athletes establishing domicile in Colorado must:
- Obtain Colorado driver’s license
- Register vehicles in-state
- Register to vote
- Establish primary residence
- Demonstrate intent to remain
Colorado taxes residents on all income earned nationally at 4.40%.
Example
A baseball player signing with a Colorado franchise and establishing residency will owe 4.40% on salary and endorsement income, but still owe jock tax to other states for away games.
Residency enforcement is generally straightforward compared to aggressive audit states like California.
Why Colorado Is Moderately Athlete-Friendly
- Flat 4.40% income tax
- No steep progressive brackets
- Lower base sales tax (but higher local add-ons)
- Strong pro sports presence (NFL, NBA, MLB, NHL)
- Predictable modeling due to flat structure
Colorado sits between zero-tax states and high-tax coastal states.
It is not tax-free, but it avoids the extreme 9%–13% progressive exposure seen in states like California and New York.
For athletes balancing contract income and long-term net worth planning, Colorado offers a stable, mid-tier tax environment.
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Next Athlete State Tax Reads
- Utah State Athlete Taxes
- Wyoming State Athlete Taxes
- Nevada State Athlete Taxes
- New Mexico State Athlete Taxes
- Montana State Athlete Taxes
Next Reads
- Adam Trautman’s Denver Broncos Contract: Taxes, Residency, Agent Fees & Net Income Explained
- Clippers-Nuggets 2025 NBA Playoffs Game 7 Generated Record Playoff Revenue
- 5 Worst NFL Free-Agency Contract Busts
- MLB’s TV Money Problem: Is Blackout Reform Coming?
- Private Jets For Athletes: Flex, Asset, or Liability?
Credits
Sources: Colorado Department of Revenue, Tax Foundation 2025 State Tax Data, Zillow / Redfin Housing Data, APSM Financial Research
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional advice.
Apostle Sports Media 