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Colorado Payroll Taxes for Employers (2026): SUTA and State Programs

Last updated: 2026-10-12 · 2026 rates checked against Colorado Dept. of Labor & Employment's own pages and the other official sources below

Colorado employers pay state unemployment tax (SUTA) on the first $30,600 of each employee's wages in 2026, and new employers pay 3.05% — at most $933.30 per employee for the year. Colorado FAMLI can add to the employer's cost in 2026, depending on headcount (details below). Every Colorado employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).

SUTA wage base
$30,600
per employee, 2026
New-employer rate
3.05%
2026
New-employer max
$933.30
SUTA per employee per year
FUTA
0.6%
$42 per employee

What will payroll taxes cost me in Colorado?

Enter your headcount and average pay to see the employer's share of Colorado and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.

Colorado employer payroll tax estimator · 2026

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3.05% is the 2026 new-employer rate. Enter your assigned rate once you have one.
Estimated annual employer payroll taxes
TaxPer year
Colorado unemployment (SUTA)
3.05% × first $30,600 per employee
$4,667
Federal unemployment (FUTA)
0.6% × first $7,000 after the full state credit
$210
Social Security (employer half)
6.2% × first $184,500
$15,500
Medicare (employer half)
1.45% of all wages
$3,625
Colorado FAMLI
No employer share at 5 employees (1–9 employees: employee share only)
$0
Total employer taxes$24,002
Per employee$4,800

Assumes every employee earns the average and works in Colorado all year. Local payroll taxes (below) depend on where the work is done and are not included. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.

Colorado unemployment insurance tax (SUTA) in 2026

2026 taxable wage base
$30,600 per employee (16th highest of 51)
New-employer rate
3.05%
How the new-employer rate works
2026 introductory rate = 1.53% base + 0.17% support + 1.35% solvency surcharge (non-construction, general construction, trades). Heavy construction: 6.285%.
Most a new employer pays per employee
$933.30 (3.05% × $30,600)
2025 average employer rate
2.09% of taxable wages (U.S. DOL)
Employee contribution
None — employer-paid only
Agency
Colorado Dept. of Labor & Employment

Register with Colorado Dept. of Labor & Employment when you first pay wages in Colorado; you get an account number for quarterly wage reports and tax payments.

Paid leave, disability and other Colorado payroll programs

  • Colorado FAMLI · wages up to $184,50010+ employees: 0.88% split 50/50; 1–9 employees: employee share only2026 premium lowered to 0.88% (from 0.9%) of wages up to $184,500. Employers with 10+ employees pay at least half; smaller employers remit only the employee share.

Local payroll taxes in Colorado

  • Denver Occupational Privilege Tax (employer part): $4.00 per month for each employee who earns $500+ in the month working in Denver (employees separately pay $5.75). source

Federal payroll taxes every Colorado employer pays

  • Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
  • Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
  • FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for Colorado unemployment tax paid on time = 0.6%, or $42 per employee.
  • Federal income tax withholding from each paycheck based on the employee's Form W-4.

Next for Colorado employers: Colorado paycheck calculator (employee withholding) · Colorado new hire reporting · Colorado payday & final paycheck rules · Colorado workers' comp · full payroll cost calculator

Colorado payroll tax FAQ

What is the Colorado SUTA rate for new employers in 2026?

3.05%. 2026 introductory rate = 1.53% base + 0.17% support + 1.35% solvency surcharge (non-construction, general construction, trades). Heavy construction: 6.285%.

What is the Colorado SUTA wage base for 2026?

$30,600 per employee. Once an employee's 2026 wages pass that amount, you stop paying Colorado unemployment tax on them for the rest of the year. That is the 16th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).

Do employees pay unemployment tax in Colorado?

No. In Colorado unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.

What other payroll taxes do Colorado employers pay?

Besides unemployment tax: Colorado FAMLI: 2026 premium lowered to 0.88% (from 0.9%) of wages up to $184,500. Employers with 10+ employees pay at least half; smaller employers remit only the employee share. Some local payroll taxes also apply: Denver Occupational Privilege Tax (employer part).

How much FUTA do Colorado employers pay?

0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying Colorado unemployment tax on time. Colorado is not a credit-reduction state for 2026.

How does my Colorado SUTA rate change after the first years?

New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, Colorado Dept. of Labor & Employment assigns a rate each year based on your layoffs and benefit charges. Use the rate on your annual rate notice. The 2025 average employer rate in Colorado was 2.09% of taxable wages.

Official Sources

Figures checked against these sources on 2026-10-12

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General information, not tax advice. Rates change every year; confirm yours on the notice from Colorado Dept. of Labor & Employment before filing.