HB 22-1021

House Bill 22-1021 reduces the state income tax rate for both individuals and corporations in Colorado from 4.55% to 4.4%, effective January 1, 2022. This means that starting from early last year, taxpayers and businesses have been paying a slightly lower percentage of their income as state taxes. The bill has been signed into law, so the tax rate reduction is now in effect for all applicable filers.

Official Summary

For income tax years commencing on and after January 1, 2022, the bill reduces both the individual and the corporate state income tax rates from 4.55% to 4.4%. The bill also exempts the rate reductions from the existing statutory requirements that tax expenditure legislation include a tax preference performance statement in a statutory legislative declaration and a repeal after a specified period of tax years. (Note: This summary applies to this bill as introduced.)