Denver Local Tax Guide (2026)
Denver charges employees a flat Occupational Privilege Tax of $5.75 a month, not a percentage of pay.
In this guide
Last updated: October 1, 2026
- •Denver charges employees a flat Occupational Privilege Tax of $5.75 a month, not a percentage of pay.
- •It is withheld for any month in which you earn at least $500 for work done in Denver, whether or not you live there: $69 a year. Your employer pays a separate $4 a month for you.
- •Colorado state income tax still applies.
What applies in Denver
Denver charges employees a flat Occupational Privilege Tax of $5.75 a month, not a percentage of pay.
It is withheld for any month in which you earn at least $500 for work done in Denver, whether or not you live there: $69 a year. Your employer pays a separate $4 a month for you.
Colorado state income tax still applies.
Source: City and County of Denver: business tax information, checked October 2026.
What it means for your paycheck
Take-home pay in Denver comes down to federal tax, Social Security and Medicare, and Colorado tax.
Our Colorado calculator covers federal income tax, Social Security and Medicare, Colorado income tax and any state payroll contributions. It adds no Denver line: what, if anything, applies there is set out above.