Colorado Bonus Tax Calculator 2026
Colorado has no separate bonus rate: the DR 1098 worksheet taxes annualized wages above a $5,500 allowance ($11,000 for joint filers) at 4.40%, so a bonus on top of regular pay adds 4.40% of the bonus.
Bonus check calculator
No bonus rate — the DR 1098 worksheet handles it
Colorado's 2026 Colorado Withholding Worksheet for Employers (DR 1098, dated 10/21/25) is the only method the Department of Revenue prescribes, and it instructs employers: "Do not adjust Colorado withholding outside of this calculation." The worksheet annualizes the period's wages, subtracts an allowance of $5,500 (or $11,000 for married filing jointly), and multiplies what is left by 4.40%. A bonus added to a regular paycheck therefore adds 4.40% of itself once the allowance has already been used up by regular pay: $220.00 on $5,000.
Where the allowance comes from
Employees may file Colorado's own DR 0004 to set a different allowance or ask for extra withholding. Without one, the allowance follows the filing status on the federal W-4. A joint filer's larger allowance changes regular paychecks but, for a typical salary, not the bonus — $220.00 for the same bonus. Only a very low-paid worker, whose regular pay doesn't exhaust the allowance, sees less: on a $150 biweekly paycheck the same $5,000 bonus carries $217.29.
| Rule | DR 1098 formula: 4.40% above the annual allowance |
|---|---|
| Valid through | December 31, 2026 |
| Documents | 2026 Colorado Withholding Worksheet for Employers (DR 1098) (DR 1098 (10/21/25)) |
| Agency | Colorado Department of Revenue |
| Federal income tax | −$1,100.00 |
| Social Security | −$310.00 |
| Medicare | −$72.50 |
| Colorado income tax | −$220.00 |
| Net | $3,297.50 |