Colorado Bonus Tax Calculator
Calculate your take-home bonus after federal and state tax withholdings for 2025
Federal Tax Withheld:
State Tax Withheld:
Total Taxes Withheld:
Net Bonus Amount:
How to Use This Calculator
1. Enter your total bonus amount in the "Bonus Amount" field (for example: 5000 for a $5,000 bonus)
2. The Colorado state tax rate is automatically set to 4.55% for 2025
3. Click the "Calculate Taxes" button to see your results
4. Review your breakdown showing federal tax, state tax, total tax withheld, and final take-home amount
How Are Bonuses Taxed in Colorado in 2025?
Colorado taxes bonuses differently than regular pay. Your employer must take out taxes before giving you your bonus money. The government calls bonuses “supplemental wages.”
The IRS takes 22% for federal tax on bonuses up to $1 million. Colorado takes 4.55% for state tax. You also pay 7.65% in FICA taxes (Social Security and Medicare).
When you add these taxes together, about 34.2% of your bonus goes to taxes. This means if you get a $1,000 bonus, about $342 goes to taxes. You keep about $658.
Here’s what happens to your bonus money:
- The IRS takes 22% for federal tax
- Colorado takes 4.55% for state tax
- FICA takes 7.65% for Social Security and Medicare
The taxes your employer takes out might be different from what you actually owe. You might get money back when you file your tax return. You might also need to pay more taxes.
Colorado Bonus Tax Rate 2025
Colorado charges a 4.55% tax on all bonuses in 2025. This is the same rate the state charges on regular income.
Your employer must take out this 4.55% from your bonus check. They also take out federal and FICA taxes.
Let’s look at some examples:
- For a $5,000 bonus: Colorado takes $227.50, the IRS takes $1,100, and FICA takes $382.50
- Total taxes: $1,710
- You keep: $3,290
For a $10,000 bonus:
- Colorado takes $455
- The IRS takes $2,200
- FICA takes $765
- Total taxes: $3,420
- You keep: $6,580
Your employer must take these taxes from your bonus by law. The amount you actually owe might change when you file your tax return.
You can plan for bonus taxes by:
- Talking to a tax expert
- Changing your W-4 form
- Saving some bonus money for possible taxes later
FAQs for Colorado Bonus Tax 2025
1. What is the Colorado bonus tax rate for 2025?
The Colorado bonus tax rate for 2025 is 4.55%, applied as a flat state supplemental tax on bonuses. This rate aligns with the state’s income tax regulations for supplemental wages.
2. How are bonuses taxed in Colorado in 2025?
Bonuses in Colorado are taxed at a federal supplemental rate of 22% (or 37% above $1 million) plus the state’s 4.55% flat rate, along with FICA taxes (7.65%). Employers withhold these amounts separately from regular wages.
3. Why is my Colorado bonus taxed so high in 2025?
Bonuses appear heavily taxed because the federal supplemental rate (22%) and Colorado’s 4.55% rate are withheld upfront, plus FICA taxes. You may recover some of this through a tax refund if your overall tax liability is lower.
4. Is there a difference between bonus tax and regular income tax in Colorado for 2025?
Yes, bonuses are taxed at a flat supplemental rate (22% federal, 4.55% Colorado) instead of the graduated rates applied to regular income. This simplifies withholding but may not reflect your final tax bracket.
5. Can I change my withholding for a bonus in Colorado in 2025?
Yes, you can adjust your Form W-4 with your employer before receiving a bonus to alter federal and state withholdings. Submit changes early to ensure they apply in time.
6. How much will I net from a $5,000 bonus in Colorado in 2025?
For a $5,000 bonus, federal tax withholds $1,100 (22%), Colorado state tax withholds $227.50 (4.55%), and FICA takes $382.50 (7.65%), leaving you with about $3,290 net. This assumes no additional local taxes or adjustments.
7. Are bonuses subject to local taxes in Colorado in 2025?
Most Colorado cities don’t impose local income taxes on bonuses, but check with your municipality, as some occupational taxes (e.g., Denver’s) may apply. Generally, only state and federal taxes directly affect bonus withholding.
8. Will I get a refund for my Colorado bonus taxes in 2025?
You might get a refund if the withheld 22% federal and 4.55% Colorado rates exceed your actual tax liability based on your income bracket. File your 2025 tax return to reconcile the difference.
9. How do I calculate Colorado bonus tax for 2025?
Multiply your bonus by 22% for federal tax, 4.55% for Colorado state tax, and 7.65% for FICA, then subtract the total from your gross bonus. Online calculators like PaycheckCity can automate this for accuracy.
10. Are there any 2025 tax changes affecting bonuses in Colorado?
No major Colorado-specific bonus tax changes are noted for 2025; the state rate remains 4.55%. Federal rates also stay consistent at 22% up to $1 million, per current IRS guidelines.
11. Do employers in Colorado have to withhold bonus taxes in 2025?
Yes, employers must withhold federal (22%), Colorado state (4.55%), and FICA (7.65%) taxes from bonuses unless the bonus is combined with regular wages under the aggregate method. It’s a legal payroll requirement.
12. What’s the difference between federal and Colorado bonus tax rates in 2025?
The federal bonus tax rate is 22% (or 37% over $1 million), while Colorado’s is a flat 4.55%. Federal rates are higher and tiered, while Colorado’s is uniform across all income levels.
13. Can I avoid paying taxes on my bonus in Colorado in 2025?
You can’t avoid taxes entirely, but contributing your bonus to a pre-tax account like a 401(k) can reduce taxable income. Consult your employer or a tax professional for options.
14. How does the Colorado bonus tax affect my paycheck in 2025?
Your bonus is taxed separately at 22% federal, 4.55% Colorado, and 7.65% FICA, reducing your take-home amount significantly. Regular paychecks use standard graduated rates, so the impact differs.
15. Where can I find a Colorado bonus tax calculator for 2025?
Websites like PaycheckCity, AnnualCalculator, or the Colorado Department of Revenue offer free 2025 bonus tax calculators. Input your bonus amount and filing status for an accurate estimate.