Colorado Minimum Wage 2026: $15.16/hr After Tax

Colorado Minimum Wage After Tax in 2026

A full-time Colorado worker at $15.16 an hour grosses $31,533 a year. After $1,604 in federal income tax, $2,412 in FICA and $678 in state income tax, take-home pay is about $26,839 a year, or $2,237 a month and $516 a week.

Colorado's statewide minimum is $15.16/hr -- but Denver workers earn $18.29/hr under the city's local ordinance. CO also does NOT conform to the federal OBBBA overtime tax exemption. Calculate your take-home pay below.

Colorado Minimum Wage After-Tax Calculator

Colorado Minimum Wage 2026: FAMLI, Denver's Higher Rate, and the OBBBA Non-Conformity

Colorado's statewide minimum wage is $15.16 per hour as of January 1, 2026, automatically adjusted each year using CPI data for the Denver-Aurora metropolitan area. For full-time workers at the statewide rate, gross annual wages reach $31,533. After Colorado's 4.4% flat income tax, the 0.45% FAMLI payroll deduction, federal income tax, and FICA, the estimated take-home pay is approximately $26,100 per year -- around $2,175 per month.

Workers in Denver earn significantly more under the city's separate local minimum wage ordinance: $18.29 per hour as of January 1, 2026. The Denver rate is administered by the Denver Department of Labor and Employment and is also CPI-indexed, typically producing a higher rate than the statewide floor.

Colorado's FAMLI Program: 0.45% Employee Deduction

Colorado's Family and Medical Leave Insurance (FAMLI) program began collecting contributions in 2023 and paying benefits in 2024. The 2026 employee contribution rate is 0.45% of wages, applied to all covered wages up to the Social Security wage base. For a minimum wage worker earning $31,533 annually, this amounts to approximately $142 per year in additional payroll deductions.

FAMLI provides up to 12 weeks of paid leave per year for qualifying medical or family events, with benefits replacing 90% of wages up to 50% of the state average weekly wage and 50% of wages above that threshold. For minimum wage workers, whose earnings fall well below 50% of the Colorado average weekly wage, the 90% replacement rate means FAMLI leave provides near-full income continuity during approved leave periods.

Denver's $18.29 Local Minimum: How It Works

Denver established its own minimum wage ordinance in 2019, setting a schedule to reach $15.87 per hour by 2021 and CPI-indexing thereafter. In 2026, Denver's rate stands at $18.29 per hour -- $3.13 higher than the statewide floor. The Denver minimum applies to all employees who perform at least 4 hours of work per week within the geographic boundaries of the City and County of Denver.

Workers who split time between Denver and surrounding jurisdictions -- Adams County, Arapahoe County, or Jefferson County, for example -- are entitled to the Denver rate for hours worked within Denver and the statewide rate for hours worked outside city limits. Employers with operations in multiple jurisdictions must track hours by location to comply. The Denver Department of Labor and Employment enforces the local ordinance and handles worker complaints.

Boulder and Fort Collins: Living Wage Considerations

While Boulder and Fort Collins have not established local minimum wage ordinances that exceed Colorado's state rate, both cities are among the most expensive in Colorado for housing. Boulder's median one-bedroom apartment exceeds $1,800 per month in 2026. Fort Collins is somewhat more affordable but still expensive relative to the statewide minimum. Workers in these college-town economies at or near the minimum wage face significant housing cost pressure despite the CPI-indexed state rate.

Mountain vs Plains: The Ski Resort Industry

Colorado's ski resort communities -- Aspen, Vail, Breckenridge, Steamboat Springs, Telluride -- operate a seasonal labor market where minimum wage workers in hospitality, lift operations, and lodging often live in employer-subsidized housing or drive long distances to work because local housing costs are among the highest in the nation. A $15.16 statewide minimum wage is functionally inadequate for independent living in resort towns where one-bedroom apartments can exceed $3,000 per month. Ski resort employers frequently pay above the minimum to attract and retain workers, but the structural housing affordability gap remains a defining feature of Colorado's mountain wage economy.

The OBBBA Overtime Exemption: Colorado Stands Apart

The One Big Beautiful Budget Act (OBBBA) of 2026 created a federal income tax exemption on overtime premium pay (the extra 0.5x rate above the regular hourly rate) up to $12,500 per year for single filers and $25,000 for joint filers. Most states automatically conform to federal income tax law changes, meaning their state income tax exemption mirrors the federal one.

Colorado is one of a small number of states that explicitly chose NOT to conform to the OBBBA overtime exemption for state income tax purposes. Colorado will continue to tax overtime premium pay at the full 4.4% state rate even for workers whose federal overtime income qualifies for the federal exemption. Workers in Colorado who earn significant overtime income should calculate their state tax liability separately from federal -- they will owe Colorado income tax on overtime wages that federal law exempts from federal income tax.

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