Colorado voters reject cap for flat income tax rate at current rate

Colorado voters have rejected a proposal that would cap the state income tax rate at its current rate of 4.4%.

Prop 136 would have set the maximum state income tax rate at 4.4% for individuals and corporations beginning on Jan. 1, 2027. It would not have changed the process for adjusting the state's income tax rate in the future.

Voters approved the current rate in 2022, and proponents of the measure said Prop 136 would reinforce support for that.

Opponents argued it would have put Amendment 87 in jeopardy and could have led to a legal battle.

Amendment 87 asked voters to approve a graduated income tax, where higher tax rates apply to higher-income households and businesses and lower tax rates apply to lower incomes. If both measures had passed, the proposed rate for incomes over $500,000 would be higher than the cap.

Colorado voters approved Amendment 87 by 51.4%