- Colorado voters will decide on November 3, 2026, between two competing income-tax proposals.
- Initiative 232 would keep the flat rate at 4.4%, while Initiative 195 would create six brackets from 3.7% to 8.4%.
- If both pass, the measure with more affirmative votes will control conflicting tax provisions.
Colorado voters will choose between two directly competing income-tax proposals on November 3, 2026, setting up a ballot contest over whether Colorado keeps its flat rate or moves to graduated taxation. The cap proposal would hold individual and corporate income-tax rates at 4.4%. The competing measure would establish six brackets ranging from 3.7% to 8.4%.
The measures cannot operate fully together. If both receive voter approval, Colorado law gives control over conflicting provisions to the measure with more affirmative votes.
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Colorado’s current flat income-tax rate is 4.4%. It has been in place since 2022.
The vote will decide more than a rate. It could determine how the state taxes individuals and corporations beginning in tax year 2027.
The ballot offers a flat-tax cap or a six-tier replacement
Initiative 232 would put a statutory ceiling of 4.4% on Colorado’s individual and corporate income taxes. The rate would apply to federal taxable income.
The measure is backed by Advance Colorado. Its competing proposal, Initiative 195, would remove the state’s uniform tax-rate requirement and establish six graduated rates.
The proposed brackets are:
| Taxable income | Rate under the graduated proposal |
|---|---|
| $0 to $25,000 | 3.7% |
| $25,001 to $100,000 | 4.2% |
| $100,001 to $500,000 | 4.4% |
| $500,001 to $750,000 | 7.4% |
| $750,001 to $1,000,000 | 7.9% |
| $1,000,001 and above | 8.4% |
The graduated system would keep the current 4.4% rate for income from $100,001 to $500,000. Lower brackets would apply below that range, while higher marginal rates would apply above $500,000.
The higher-vote measure would govern conflicting provisions
The competing proposals are designed around Colorado’s Taxpayer’s Bill of Rights, known as TABOR. The framework requires a uniform tax rate unless voters approve a change.
The ballot mechanics create a direct comparison:
| If voters do this | Result under the conflicting-measure rule |
|---|---|
| Approve only the cap proposal | The 4.4% statutory cap takes effect |
| Approve only the graduated proposal | The six-bracket structure takes effect |
| Approve both | The measure with more affirmative votes controls conflicting provisions |
The graduated proposal has been described as applying to both individual and corporate income taxes. It would begin in tax year 2027.
Both campaigns cleared the ballot after competing signature drives
The Colorado Secretary of State’s office cleared the cap measure on August 20, 2026, after supporters submitted enough valid signatures. Advance Colorado said it filed 190,000 signatures, and the office found more than 184,000 valid.
Statewide measures needed about 124,000 valid signatures to qualify. The competing graduated-tax proposal was certified for the November general-election ballot on September 1, 2026.
The Secretary of State’s office had until September 2, 2026, to complete its review of signatures for the graduated proposal. Protect Colorado’s Future and the Bell Policy Center coalition back that measure.
The certification placed both income-tax questions before voters in the same election. Their competing designs now give voters a choice between a permanent cap on the existing rate and a new structure tied to income levels.
The cap campaign frames the vote as a business fight
Michael Fields, executive director of Advance Colorado, described the cap proposal as a response to efforts to raise taxes and change Colorado’s income-tax structure.
“This is a clear counter to the far left’s attempt to hike taxes in Colorado, price people out of the state we love, and drive business out. We’ll always fight to protect TABOR and keep our taxes low.”
The graduated-tax campaign’s structure would shift the tax schedule in opposite directions depending on income. Earnings up to $100,000 would face rates below the current 4.4% level, while income above $500,000 would face higher marginal rates.
That split would affect taxpayers differently. A household or business with income in the lower brackets would see a lower listed rate than under the current flat system. Income in the top bracket would be taxed at 8.4% under the proposal.
The vote is scheduled for November 3, 2026. If both measures pass, the affirmative-vote totals will determine which conflicting tax provisions control.
