Colorado Voters Will Decide Amendment 87 in 2026
The proposed ballot measure would replace the state's flat 4.4% income tax with a graduated eight-tier system.
Updated on Sept. 25, 2026 in Taxes
Live Poll
Do you support replacing Colorado's flat income tax with a graduated income tax system?
Colorado voters will decide in November 2026 whether to adopt Amendment 87, which aims to replace the current flat 4.4% income tax with a graduated system featuring eight ascending rates. The measure seeks to shift the tax burden by lowering rates for those earning under $500,000 annually while increasing taxes on income exceeding that threshold.
Why it matters
Proponents argue that the measure will generate $2.7 billion in new annual revenue to prevent cuts to public services like education and healthcare. Conversely, opponents contend that the proposal will increase the overall tax burden and damage the state's economic competitiveness.
The initiative targets a $2.7 billion increase in annual state revenue through a new structure of eight tax brackets. This plan would replace the existing flat 4.4% income tax rate currently in effect for all taxpayers.
The players
Protect Colorado's Future
This is an advocacy group supporting the ballot initiative and providing resources for taxpayers to compare current and proposed rates.
The details
Amendment 87 would modify the Taxpayer Bill of Rights to facilitate a graduated income tax system for individuals and companies. While supporters suggest 97% of residents could see lower tax liabilities, opponents warn that the changes could stifle economic growth across the state.
Timeline
Voters will cast ballots on Amendment 87 in November 2026.
Market Dynamics
This proposal represents a fundamental shift in state fiscal policy by challenging the framework established by the Taxpayer Bill of Rights. It reflects a broader regional debate over how to balance public funding requirements against the goal of maintaining economic growth.
The proposed tax changes would directly alter the annual income tax liabilities for both individuals and small business owners based on the $500,000 threshold. Taxpayers can use provided calculators to estimate how their personal financial situation would change if the graduated rate system is adopted.
The takeaway
This ballot measure forces voters to weigh the potential for increased public service funding against concerns over long-term economic competitiveness. Residents should evaluate how their own income level aligns with the proposed $500,000 threshold to understand their potential tax change.
Further reading
For more on state tax policies, explore our coverage of Colorado Taxes.
More information
To compare your current taxes with the proposed rates, visit the Protect Colorado's Future tax calculator.
Source note: This article includes information reported by Colorado Public Radio.
Live Poll
Do you support replacing Colorado's flat income tax with a graduated income tax system?
