Colorado Paycheck
Calculator

Use the Colorado Paycheck Calculator to estimate your take-home pay after federal withholding, Social Security, Medicare, Colorado income tax and other payroll deductions. Colorado uses a relatively direct state withholding formula, but the result still depends on taxable wages, pay frequency and employee withholding information.

For 2026, Colorado's official DR 1098 Employer Withholding Worksheet applies a 4.40% rate after the applicable state withholding adjustment. Employees may also submit Form DR 0004 to modify the information used in the Colorado calculation.

Source: Colorado DR 1098 Employer Withholding Worksheet

How to Calculate a Colorado Paycheck

A Colorado paycheck estimate starts with gross wages for the pay period. Taxes and payroll deductions are then subtracted to estimate net pay.

• Gross wages
• Hourly or salary pay
• Pay frequency
• Federal Form W-4 information
• Colorado Form DR 0004 information, if provided
• Overtime and bonuses
• Pre-tax deductions
• Post-tax deductions
• Year-to-date taxable wages

Colorado's withholding calculation is tied to annualized payroll, so choosing the correct pay frequency is important.

What Taxes Come Out of a Colorado Paycheck?

A Colorado paycheck can include federal income tax withholding, Social Security, Medicare and Colorado income tax withholding.

Employee benefits or other authorized deductions may further reduce take-home pay.

Federal Income Tax

Federal income tax withholding is calculated separately from Colorado income tax.

For 2026, federal withholding is based on current IRS methods and the employee's Form W-4 information. Publication 15-T contains the 2026 percentage and wage bracket methods used by employers.

Source: IRS Publication 15-T

Social Security and Medicare

The standard employee FICA rates for 2026 are:

• Social Security: 6.2% on covered wages up to $184,500
• Medicare: 1.45% on covered wages with no annual wage limit

Employers must also begin withholding the 0.9% Additional Medicare Tax after an employee's wages paid by that employer exceed $200,000 during the calendar year.

Source: IRS Publication 15

Colorado Income Tax Withholding

Colorado's 2026 wage withholding calculation uses a 4.40% rate within the DR 1098 calculation.

The official worksheet first annualizes taxable wages. If the employee has submitted Colorado Form DR 0004, the employer uses the applicable amount from that form.

If no DR 0004 amount is provided, the 2026 worksheet generally uses:

The applicable amount is subtracted from annualized wages. The remaining amount is multiplied by 4.40%, then divided by the number of pay periods to calculate withholding for the paycheck.

This is more precise than simply multiplying each paycheck by 4.4%.

How Colorado Withholding Is Calculated in 2026

Colorado's DR 1098 worksheet provides the state method employers use to calculate wage withholding.

1. Enter taxable wages for the pay period.

2. Multiply wages by the number of annual pay periods.

3. Apply the appropriate DR 0004 or filing-status amount.

4. Subtract that amount from annualized wages.

5. Multiply the remaining amount by 4.40%.

6. Divide the result by annual pay periods.

7. Add any additional Colorado withholding requested by the employee.

The official 2026 worksheet specifically uses 52 periods for weekly payroll, 26 for biweekly payroll, 24 for semimonthly payroll and 12 for monthly payroll.

Does Colorado Require Form DR 0004?

Colorado employees may complete Form DR 0004, but the form is not required for every employee.

If an employee submits a completed DR 0004, the employer must use the amounts entered on it according to DR 1098.

If the employee does not submit DR 0004, Colorado withholding can generally be calculated using the employee's federal Form W-4 information.

Source: Colorado Withholding FAQ

This distinction is important when comparing a calculator estimate with an actual paycheck.

Colorado Hourly Paycheck Calculator

For hourly employees, first calculate gross wages from hourly rate and hours worked.

Regular Hours × Hourly Rate = Regular Gross Pay

Add any taxable overtime, bonus or other compensation that belongs in the payroll period.

Colorado's 2026 DR 1098 specifically instructs employers to include overtime pay in total taxable wages for the payroll period.

The resulting taxable wage amount is then used for state withholding calculations.

Colorado Salary Paycheck Calculator

For salaried employees, the gross amount of each paycheck depends on how often payroll is processed.

• Annual Salary ÷ 26 = Biweekly Gross Pay
• Annual Salary ÷ 24 = Semimonthly Gross Pay
• Annual Salary ÷ 12 = Monthly Gross Pay

Taxes and deductions are calculated after gross wages for the period are determined.

Because biweekly payroll produces 26 regular paychecks in most years while semimonthly payroll produces 24, the amount shown on each paycheck can differ even when annual salary is identical.

Gross Pay and Take-Home Pay in Colorado

Gross pay is the amount earned before withholding and deductions. Take-home pay is the amount left after applicable payroll deductions.

Gross Pay - Federal Taxes - Colorado Withholding - Other Deductions = Net Pay

The difference can be affected by health insurance, retirement contributions, additional withholding, bonuses and other payroll items.

Who Is Subject to Colorado Wage Withholding?

Colorado generally requires withholding when compensation is subject to federal income tax withholding and the employee is either a Colorado resident or a nonresident performing services in Colorado.

Source: Colorado Withholding Tax Filing Requirements

Residency and work location can therefore matter for employees who work across state lines.

Special circumstances may require a more detailed state tax analysis than a standard paycheck calculator provides.

Why Your Colorado Paycheck Estimate Can Differ

An estimate may differ from an actual paycheck because payroll calculations depend on employee-specific information.

• DR 0004 adjustments
• Form W-4 changes
• Pre-tax deductions
• Additional Colorado withholding
• Overtime
• Bonuses
• Taxable benefits
• Payroll corrections
• Year-to-date wage limits

Colorado also no longer relies on traditional withholding tables for the standard employer calculation. Employers use the DR 1098 methodology instead.

Need to Record an Actual Payroll Payment?

A paycheck calculator helps estimate payroll before or after a pay period. A pay stub serves a different purpose by recording the actual earnings, taxes, deductions and net pay associated with a payroll payment.

Online PayStub can help employers and other legitimate users enter accurate payroll information, review the figures and generate a professional pay stub for lawful business and recordkeeping purposes.

Always use the actual payroll figures rather than substituting calculator estimates for amounts that were not paid.