Amendment 87 (Initiative 195): Replacing Colorado's single income tax rate with six graduated rates

The ballot question

Shall state taxes be increased $2.7 billion annually, in order to increase or improve levels of public services, including K-12 public school education, health care, and early child care and education services, by an amendment to the Colorado Constitution and a change to the Colorado Revised Statutes repealing existing law and creating new law to replace the uniform state income tax rate with a graduated income tax structure, and, in connection therewith, amending the Taxpayer’s Bill of Rights to eliminate the constitutional requirement for all taxable net income to be taxed at one rate with no added tax on income; establishing various income tax rates based on the amount of taxable income earned by individuals, estates, trusts, and corporations, while maintaining the current 4.4% tax on income from the sale of a principal residence, which will result in the estimated change in income taxes owed by individuals as identified in the following table; and authorizing the state to retain and spend any increased revenue from the new tax structure, as a voter-approved revenue change, to supplement current levels of funding for K-12 public school education, health care, and early child care and education programs? Initiative 195 Change in Income Taxes Owed by Income Category Income Categories Current Average Income Tax Owed Proposed Average Income Tax Owed Proposed Change in Average Income Tax Owed if Passed + or - $25,000 or less $59 $50 -$9 $25,001 - $50,000 $751 $632 -$119 $50,001 - $100,000 $1,877 $1,666 -$210 $100,001 - $200,000 $4,126 $3,828 -$298 $200,001 - $500,000 $9,344 $9,019 -$325 $500,001 - $1,000,000 $19,288 $18,963 -$325 $1,000,001 - $2,000,000 $29,432 $34,196 +$4,764 $2,000,001 - $5,000,000 $41,196 $55,110 +$13,914 Income categories use adjusted gross income reported to the federal Internal Revenue Service.

What a vote does

A yes vote means

Six graduated rates would replace the 4.40% flat rate in tax year 2027 for individuals, estates, trusts and C corporations. Each rate would apply only to income in its bracket. Taxable gain from selling or exchanging a principal residence above the federal exclusion would remain taxed at 4.40%. TABOR’s single-rate requirement would be removed, and the state could keep the additional revenue for the measure’s designated purposes.

A no vote means

The measure is not enacted. Individual and corporate income stays taxed at the single rate of 4.40 percent, and the Taxpayer's Bill of Rights continues to require all taxable net income to be taxed at one rate.

Figures from the fiscal estimate

• New rates begin: Tax year 2027
• The measure itself would take effect on the governor’s proclamation after voter approval.
• Current base rate: 4.40%
• Individual and corporate income; temporary TABOR-related reductions are separate.
• Proposed rates: 3.70%–8.40%
• Six marginal brackets; taxable principal-residence gain above the federal exclusion remains at 4.40%.

Legislative Council ballot analysis

• Ballot analysis, Legislative Council

Official documents

• Certified text of Initiative 195
• Fiscal impact statement (March 9, 2026)
• Fiscal summary (January 20, 2026)
• Review and comment memorandum (January 2, 2026)
• Ballot title, submission clause and Title Board results

Key dates

• October 2 to October 9: county clerks mail ballots to active voters.
• October 12: drop boxes open.
• October 26: last suggested day to return a ballot by mail.
• From October 27: return your ballot to a drop box or vote center instead of mailing it.
• November 3, 2026, Election Day: ballots are due by 7:00 p.m.

• Find a drop box or vote center at GoVoteColorado.gov
• Colorado Secretary of State, September 23, 2026