If you live in Colorado, USA, you might be eligible for a tax refund of up to $1300 in 2025. This money is being given back to taxpayers under a law called TABOR (Taxpayer’s Bill of Rights). This article explains who can get the money, how much they can get, and what they need to do to qualify. Whether you’re single or married, this guide will help you understand everything in simple words.
What is TABOR and Why Does It Matter?
TABOR is a law passed in 1992 in Colorado. It controls how much money the state government can collect and spend. When the government collects more money than it needs, it has to return the extra to the people through refunds or tax cuts.
In 2024, Colorado collected more money than allowed. So, the state decided to return some of this money to its taxpayers. These refunds will be given out in 2025. The money also helps some seniors and veterans with special tax benefits.
What Kind of Tax Benefits Are Given?
There are two main benefits:
1. Sales Tax Refund
People who file their Colorado state tax returns can claim a refund based on their income. This is not an extra payment but included in your state tax refund. You must file your return by October 15, 2025, to receive it.
How much you get depends on your income:
If you’re single, you could get between $177 and $565.
If you’re married and file taxes together, you could get between $354 and $1,130.
2. Lower Income Tax Rate
For the year 2024, the income tax rate has been reduced from 4.40% to 4.25%. This applies to all taxpayers automatically. For example, someone earning $50,000 will save about $75.
How to Claim Your Refund
To claim the refund, you must file your state tax return or use the PTC (Property Tax/Rent/Heat Credit) form if you’re a senior. The refund is based on your Adjusted Gross Income (AGI), which is your income after deductions.
There are six income brackets, and each has its own refund amount. In general:
If your AGI is up to $53,000, you will get $177 (single) or $354 (joint).
If your AGI is above $302,001, you will get $565 (single) or $1,130 (joint).
In 2024, Colorado changed the way refunds are calculated. Instead of giving the same amount to everyone, the new system gives more to those who paid more taxes, making it fairer.
What If You Don’t Qualify?
If you didn’t file your taxes, you won’t get the refund. But there are exceptions:
- Senior citizens with non-taxable income under $25,000 can file using form DR0104EZ.
- They must have paid at least one of these: property tax, rent, or heat costs.
- Married couples must be legally married by December 31, 2024, to file jointly.
- People who live outside Colorado for most of 2024 or live in another state are not eligible.
- Military members and students must prove they lived in Colorado full-time.
Returns filed electronically usually take 3 to 5 weeks to process, while paper returns can take up to 12 weeks.
Don’t Miss Out on This Refund
If you lived in Colorado throughout 2024, paid your taxes, and meet the income rules, you could be getting back up to $1,300. Make sure to file your taxes before October 15, 2025, and check if you qualify for the sales tax refund or the automatic tax rate cut. For seniors, there are simple forms to file too. Don’t delay—this is money you could be missing out on.
