Amendment 87Graduated Income Tax
Read the full text of the measure: Blue Book pages 79 to 84 (PDF)
In plain words
Today everyone in Colorado pays the same state income tax rate: 4.4 percent. Amendment 87 would change the state constitution so people with more income pay a higher rate, starting in 2027. People and businesses with taxable income (the part of income the tax is figured on) below about $500,000 would pay a little less, and those above would pay more. The extra money must go to K-12 schools, health care, and care and education for young children. source: Blue Book, p. 33
Before and after
| Taxable income | Today's rate | Rate if Amendment 87 passes |
|---|---|---|
| The first $25,000 | 4.4% | 3.7% |
| $25,001 to $100,000 | 4.4% | 4.2% |
| $100,001 to $500,000 | 4.4% | 4.4% |
| $500,001 to $750,000 | 4.4% | 7.4% |
| $750,001 to $1,000,000 | 4.4% | 7.9% |
| More than $1,000,000 | 4.4% | 8.4% |
From the official analysis source: Blue Book, p. 33
Example
Illustration only: Someone with $125,000 of taxable income pays $5,500 today (4.4 percent of all of it). Under Amendment 87 they would pay 3.7 percent on the first $25,000 ($925), 4.2 percent on the next $75,000 ($3,150), and 4.4 percent on the last $25,000 ($1,100), for $5,175 in all. That is $325 less, the biggest cut anyone gets. Someone with $2,000,000 of taxable income would go from $88,000 to $143,925, which is $55,925 more. source: Blue Book, p. 33
Biggest change
- The single 4.4 percent income tax rate is replaced by six rates, from 3.7 percent to 8.4 percent. Each rate applies only to the part of income in that range, and the ranges do not go up with inflation, so over time more income falls into the higher ranges. source: Blue Book, p. 33
- The extra money goes into a new Colorado Future's Account and must add to, not replace, what the state already spends on K-12 schools, health care, and early childhood care and education. It does not count toward the state's yearly limit on how much tax money it can keep (called TABOR, the Taxpayer's Bill of Rights), so TABOR refunds would not change. source: Blue Book, p. 33
Who it affects most: People and businesses with Colorado taxable income of $510,834 or more, who would pay more; everyone below that would pay up to $325 a year less.
Cost to the state: The state would collect about $958.4 million more in budget year 2026-27 (only half a year) and $1.972 billion more in 2027-28. A budget year runs July 1 to June 30. Allowing for forecast error, the most it could be in 2027-28 is $2.7 billion. Putting the change in place costs the Department of Revenue $98,000 one time.
Our plain-words summary at an 8th-grade reading level. Every line points to its source.
Related case study: TABOR: voter control, public revenue, and Colorado's ballot choices (initial draft, not independently reviewed).
What your vote means
Starting in 2027, state income tax rates would range from 3.7 percent to 8.4 percent depending on income, and the extra money would go to schools, health care, and early childhood care and education.
Everyone keeps paying one flat state income tax rate of 4.4 percent, as the state constitution requires today.
Our plain-words summary.
The Blue Book's official wording of YES and NO (tap to open)
YES: A “yes” vote on Amendment 87 creates a graduated state income tax that increases revenue; uses the additional money for K-12 education, health care, and early childhood care and education; and exempts additional revenue collected from the state’s constitutional revenue limit.
NO: A “no” vote on Amendment 87 keeps the current constitutional requirement for a flat state income tax rate.
Why people want it, and why others object
Why this is on the ballot
- Voters put this on the ballot through a citizen petition (a citizen initiative). Colorado has had one flat income tax rate since 1987, and TABOR, part of the state constitution, requires it. That is why a change to the constitution is needed. source: Blue Book, p. 33
- Proposition 136, also on this ballot, would cap the income tax rate at 4.4 percent. If both pass, Amendment 87's rates above $500,000 would be higher than that cap. The Blue Book says the outcome is then unclear, and the legislature or a court would have to decide. source: Blue Book, p. 33
Why supporters want it
- Amendment 87 cuts taxes for 97 percent of taxpayers, including most households and small businesses, while increasing taxes only for top earners who have the ability to pay. A graduated income tax is more equitable than a flat tax because it recognizes a fundamental economic reality: each dollar taxed on someone earning $30,000 imposes a far greater hardship than each dollar taxed on someone earning $1 million. By aligning tax rates with taxpayers’ financial means, a graduated tax distributes the burden more justly across all income levels, lowers taxes for most source: Blue Book, p. 33
- The measure funds critical services at a time when additional funding is desperately needed. Crucial programs are at risk of further cuts because of changes in federal policy. Revenue from the graduated tax will fund education, health care, and child care, public services that many Colorado households rely on. Colorado public schools are significantly underfunded, and constraints on the state budget make Medicaid cuts increasingly likely. Additional funding will provide more security for the people who depend on these services. source: Blue Book, p. 33
- The graduated income tax is not an experiment, but a proven approach for funding essential public services. The federal government and 27 other states already have a graduated income tax. This tax structure lessens rising wealth inequality and increases funding for state programs. Sales and property taxes place greater burdens on lower-income households, and a graduated income tax corrects for this inequity while also funding services for all Coloradans. source: Blue Book, p. 33
Why opponents object
- The measure is a multibillion-dollar tax increase, and hiking taxes on higher incomes will harm Colorado’s economy. Higher tax rates make Colorado a less competitive place to start and grow a business, and may encourage some high earners to leave the state entirely. When businesses and high-earning individuals relocate, people at all income levels may lose their jobs. Further, because the brackets do not increase with inflation, more and more taxpayers will pay these higher taxes each year. Colorado cannot risk employers and jobs fleeing the state because our taxes are too high. Keeping taxes competitive for everyone fuels economic activity and builds a stronger, more prosperous Colorado for all. source: Blue Book, p. 33
- The measure is an attack on the fair and predictable tax system that TABOR currently guarantees. The state’s current flat tax is fair because everyone has equal access to state services, high-income earners already pay more taxes, and low-income earners qualify for more tax deductions and credits. The state should better prioritize the tens of billions of dollars it already collects, rather than switch to a new, complicated tax system. source: Blue Book, p. 33
- The measure will permanently expand the size of government, increase careless and wasteful spending of taxpayer dollars, and hinder economic growth. Instead of spending billions of dollars more on broadly defined government services, state policy should focus on lowering taxes for everyone or funding specific programs that are proven to help Colorado’s residents. source: Blue Book, p. 33
Who backs each side
Most totals are through October 4, 2026 (Rocky Mountain Voice, Oct 6); some are as of September 21 (Colorado Politics). Spending grows until Election Day. These figures come from news reports of state campaign finance filings and were not checked line by line against the filings.
- For: Protect Colorado's Future reported about $1 million through Oct 4. Top donors: Bell Policy Center ($138,000), New Era Colorado Action ($131,000), Colorado Statewide Parent Coalition ($128,000) and Great Education Colorado Action ($111,000).
- Against: Americans for Prosperity Colorado reported $49,630; smaller committees reported a few thousand dollars. No total specific to Amendment 87 was found for A Brighter Colorado.
Sources: Rocky Mountain Voice, Oct 6, 2026 · Colorado Politics, Sept 25, 2026 · Colorado Secretary of State: committees for and against 2026 measures · TRACER campaign finance search
Supporter and opponent arguments are the official ones printed in the Blue Book, written by the Legislative Council's nonpartisan staff after hearing from both sides. Who is registered for and against (Secretary of State) . We don't endorse either side.
At a glance
Our plain-words summary of the official Blue Book analysis. Every line points to its source.
Who it affects
- Every individual and business that pays Colorado income tax. Today all pay one flat rate of 4.4 percent. (Blue Book, p. 33 )
- Taxpayers with Colorado taxable income under $510,834 would owe less. The biggest cut is $325 a year. For example, $25,000 of taxable income owes $175 less and $125,000 owes $325 less. (Blue Book, p. 33 )
- Taxpayers with Colorado taxable income of $510,834 and above would owe more. For example, $550,000 of taxable income owes $1,175 more, and $2,000,000 owes $55,925 more. (Blue Book, p. 33 )
- K-12 education, health care, and early childhood care and education, which must receive the new money. The legislature picks the specific programs and amounts. (Blue Book, p. 33 )
- School districts, which would get more state funding. The amount depends on how the legislature divides the new money. (Blue Book, p. 33 )
How many: The Blue Book estimates that 46,328 taxpayers with federal adjusted gross income of $1,000,000 or more would pay $1,208,468,497 more in total, or $26,085 more each on average. Every lower income group in its Table 3 would pay less on average. For example, 408,924 taxpayers earning $15,000 to $29,999 would save $39 each, 408,912 earning $100,000 to $149,999 would save $283 each, and 55,900 earning $500,000 to $999,999 would save $284 each (estimates use tax year 2023 data and count joint filers as one taxpayer).
Money: economic and budget impact
- State revenue: the Blue Book estimates income tax revenue goes up by $958.4 million in budget year 2026-27 (a half year) and $1.972 billion in budget year 2027-28, then more in later years as income and population grow. (Blue Book, p. 33 )
- The figure on the ballot is a maximum. Allowing for forecast error, the Blue Book puts the most the increase could be in budget year 2027-28 at $2.7 billion. (Blue Book, p. 33 )
- TABOR refunds: no change. The new money is exempt from the state revenue limit, and the limit and estimated refunds stay the same. (Blue Book, p. 33 )
- State spending: the new money goes into a new Colorado Future's Account and must add to, not replace, current spending on K-12 education, health care, and early childhood care and education. The Department of Revenue has a one-time cost of $98,000 to put the change in place. (Blue Book, p. 33 )
- The new tax brackets are not adjusted for inflation, so more of taxpayers' income will fall into higher brackets over time. (Blue Book, p. 33 )
- The Blue Book does not estimate effects on jobs, business growth or people moving in or out of the state. (Blue Book, p. 33 )
Starting in 2027, the flat 4.4 percent rate is replaced by six brackets. The rates are 3.7 percent on the first $25,000 of taxable income, 4.2 percent up to $100,000, 4.4 percent up to $500,000, 7.4 percent up to $750,000, 7.9 percent up to $1,000,000, and 8.4 percent above that. Each rate applies only to the income in that bracket. The state must publish an audited yearly report on how much extra money came in and how it was spent. Because it changes the state constitution, undoing it would take another statewide vote.
The state constitution keeps requiring one flat income tax rate for everyone. The current rate of 4.4 percent stays in place for individuals and businesses.
Not yet known
- How the new money would be split among K-12 education, health care, and early childhood care and education. The legislature decides this later.
- How much each school district would get.
- Any effect on jobs, businesses, or high earners leaving the state. The Blue Book makes no economic estimate; only the arguments discuss it.
- How many more taxpayers would move into higher brackets over time because the brackets are not adjusted for inflation.
- What happens if Amendment 87 and Proposition 136 both pass. The Blue Book says the legislature or a court would have to decide.
Can it actually be enforced?
Short answer: Yes as state tax law, but its outcome is unclear if Proposition 136 also passes. That conflict would go to the legislature or a court.
- It changes the Colorado Constitution. It removes TABOR's requirement that income be taxed at one flat rate, so the graduated rates would not conflict with TABOR itself. The extra money is exempt from the TABOR limit as a voter-approved revenue change. (Blue Book, p. 33 )
- Conflict with Proposition 136: 136 would cap the income tax rate at 4.4 percent. Amendment 87's top rates are higher. The Blue Book says the measure with more votes generally controls where they conflict, but if both pass the exact outcome is unclear and the legislature or a court would decide. 136 is a statute and 87 is a constitutional amendment, which a court may weigh. (Blue Book, p. 33 )
- Who carries it out: the Department of Revenue would collect the tax, at a one-time cost of about $98,000. The legislature decides which specific programs get the money, within K-12, health care and early childhood. (Blue Book, p. 33 )
- A check on spending: the money must add to, not replace, current spending on those services, and the state must publish an audited yearly report. The Blue Book does not describe a penalty if the legislature falls short. (Blue Book, p. 33 )
- No federal issue: setting state income tax rates is a state power. We found no federal law that would block it. Revenue could be higher or lower than estimated depending on the economy and whether high earners move. (Blue Book, p. 33 )
Not yet known
- How a court would actually rule if both 87 and 136 pass. No court has decided this.
This is our reading of the cited law, not legal advice. Court outcomes are uncertain.
Official ballot wording
Official ballot wording, word for word (tap to open)
The ballot title, word for word from the 2026 Blue Book.
SHALL STATE TAXES BE INCREASED $2.7 BILLION ANNUALLY, IN ORDER TO INCREASE OR IMPROVE LEVELS OF PUBLIC SERVICES, INCLUDING K-12 PUBLIC SCHOOL EDUCATION, HEALTH CARE, AND EARLY CHILD CARE AND EDUCATION SERVICES, BY AN AMENDMENT TO THE COLORADO CONSTITUTION AND A CHANGE TO THE COLORADO REVISED STATUTES REPEALING EXISTING LAW AND CREATING NEW LAW TO REPLACE THE UNIFORM STATE INCOME TAX RATE WITH A GRADUATED INCOME TAX STRUCTURE, AND, IN CONNECTION THEREWITH, AMENDING THE TAXPAYER’S BILL OF RIGHTS TO ELIMINATE THE CONSTITUTIONAL REQUIREMENT FOR ALL TAXABLE NET INCOME TO BE TAXED AT ONE RATE WITH NO ADDED TAX ON INCOME; ESTABLISHING VARIOUS INCOME TAX RATES BASED ON THE AMOUNT OF TAXABLE INCOME EARNED BY INDIVIDUALS, ESTATES, TRUSTS, AND CORPORATIONS, WHILE MAINTAINING THE CURRENT 4.4% TAX ON INCOME FROM THE SALE OF A PRINCIPAL RESIDENCE, WHICH WILL RESULT IN THE ESTIMATED CHANGE IN INCOME TAXES OWED BY INDIVIDUALS AS IDENTIFIED IN THE FOLLOWING TABLE; AND AUTHORIZING THE STATE TO RETAIN AND SPEND ANY INCREASED REVENUE FROM THE NEW TAX STRUCTURE, AS A VOTER-APPROVED REVENUE CHANGE, TO SUPPLEMENT CURRENT LEVELS OF FUNDING FOR K-12 PUBLIC SCHOOL EDUCATION, HEALTH CARE, AND EARLY CHILD CARE AND EDUCATION PROGRAMS?
| Income Categories | Current Average Income Tax Owed | Proposed Average Income Tax Owed | Proposed Change in Average Income Tax Owed if Passed + or ‑ |
|---|---|---|---|
| $25,000 or less | $59 | $50 | -$9 |
| $25,001 - $50,000 | $751 | $632 | -$119 |
| $50,001 - $100,000 | $1,877 | $1,666 | -$210 |
| $100,001 - $200,000 | $4,126 | $3,828 | -$298 |
| $200,001 - $500,000 | $9,344 | $9,019 | -$325 |
| $500,001 - $1,000,000 | $19,288 | $18,963 | -$325 |
| $1,000,001 - $2,000,000 | $29,432 | $34,196 | +$4,764 |
| $2,000,001 - $5,000,000 | $41,196 | $55,110 | +$13,914 |
Income categories use adjusted gross income reported to the federal Internal Revenue Service.
The official analysis
The full Blue Book analysis, word for word (tap to open)
Everything in this section is quoted from the nonpartisan Legislative Council's 2026 State Ballot Information Booklet (the Blue Book). Charts are described in words. Read the full Blue Book (PDF)
Amendment 87 proposes amending the Colorado Constitution and Colorado statutes to:
- remove the constitutional requirement that the state income tax be set at a single flat rate;
- replace the current flat income tax with a graduated state income tax that sets lower rates for lower incomes and higher rates for higher incomes;
- spend the additional revenue collected from these income tax rate changes on K-12 education, health care, and early childhood care and education; and
- exempt additional revenue collected under the measure from the state’s constitutional revenue limit.
Summary and Analysis of Amendment 87
What does Amendment 87 do?
The measure replaces the state’s current flat income tax rate for individuals and businesses with a graduated income tax that lowers taxes for taxable income below $500,000 and raises taxes for taxable income above $500,000. It requires that the additional money collected from this change be spent on K-12 education, health care, and early childhood care and education, and exempts this money from the state’s constitutional revenue limit, also known as the Taxpayer’s Bill of Rights (TABOR) limit. The state must produce an audited annual report on how much additional revenue was collected and how it was spent.
What is the state’s current income tax structure?
Since 1987, Colorado has had a flat income tax rate, in which all taxpayers, including individuals and businesses, pay the same income tax rate on their income. The state’s current flat income tax rate is 4.4 percent. The majority of state income tax revenue is used for general state programs and services. The TABOR amendment in the state constitution requires that income be taxed at a flat rate. Income tax is paid on a portion of a household’s or business’s income, which is called taxable income. For example, a married couple earning $42,000 in income per year may have about $10,000 in taxable income and owe $440 in taxes annually. A married couple earning $130,000 in income per year may have about $100,000 in taxable income and owe $4,400 in taxes annually.
What is the graduated income tax structure proposed in Amendment 87?
Amendment 87 removes the constitutional requirement that income be taxed at a flat rate and creates a graduated income tax starting in 2027. In this graduated tax system, an individual’s or business’s income is split into six ranges—called brackets—with the lowest income tax bracket taxed at the lowest rate and each higher bracket taxed at increasing rates, as shown in Table 1.
This is similar to how the federal income tax works. Unlike the federal income tax, the new state income tax brackets are not adjusted for inflation, so more of taxpayers’ incomes will fall into the higher brackets over time. Each tax rate is only applied to the portion of taxable income that falls into that bracket.
Table 1: Graduated Income Tax Rates by Income Bracket Under Amendment 87 (Blue Book p. 34)
| Taxable Income Bracket | Current Tax Rate | Amendment 87 Tax Rate | Difference |
|---|---|---|---|
| $25,000 or less | 4.4% | 3.7% | -0.7 |
| $25,001 to $100,000 | 4.4% | 4.2% | -0.2 |
| $100,001 to $500,000 | 4.4% | 4.4% | 0.0 |
| $500,001 to $750,000 | 4.4% | 7.4% | +3.0 |
| $750,001 to $1,000,000 | 4.4% | 7.9% | +3.5 |
| More than $1,000,000 | 4.4% | 8.4% | +4.0 |
For example, as shown in Figure 1 below, an individual or business earning $125,000 a year in taxable income is taxed at a rate of 3.7 percent for the first $25,000. The next portion of taxable income between $25,000 and $100,000 is taxed at a rate of 4.2 percent. The remaining $25,000 is taxed at the rate of 4.4 percent. The total tax owed under the measure would be $5,175, or $325 less than the $5,500 they would owe under current law.
Figure 1: Tax Rates and Taxes Owed for a Taxpayer with $125,000 in Taxable Income. This chart is in the printed Blue Book on page 35. It shows the example in the paragraph above: under current law, $125,000 x 4.4% = $5,500. Under Amendment 87, $25,000 x 3.7% = $925, plus $75,000 x 4.2% = $3,150, plus $25,000 x 4.4% = $1,100, for a total of $5,175.
How does Amendment 87 change the amount of taxes owed?
For individuals and businesses with taxable incomes of less than $500,000, the measure decreases the amount of income taxes owed, up to a maximum reduction of $325 per taxpayer. For taxpayers with incomes of about $500,000 and above, the measure increases the amount of income taxes owed. Table 2 shows an example of taxes owed under the measure and under current law for seven hypothetical taxpayers with different levels of taxable income.
Table 2: Taxes Owed Under Current Law and Amendment 87 (Blue Book p. 35)
| Example Taxable Income | Current Income Tax Owed | Amendment 87 Income Tax Owed | Difference in Income Tax Owed |
|---|---|---|---|
| $25,000 | $1,100 | $925 | -$175 |
| $62,500 | $2,750 | $2,500 | -$250 |
| $125,000 | $5,500 | $5,175 | -$325 |
| $300,000 | $13,200 | $12,875 | -$325 |
| $550,000 | $24,200 | $25,375 | +$1,175 |
| $625,000 | $27,500 | $30,925 | +$3,425 |
| $875,000 | $38,500 | $50,050 | +$11,550 |
| $2,000,000 | $88,000 | $143,925 | +$55,925 |
How does Amendment 87 change state revenue?
By changing tax rates for individuals and businesses, Amendment 87 is expected to increase state income tax revenue by an estimated $2 billion in the first full year and more in later years. However, actual revenue collections may be more or less than this estimate depending on economic conditions and other factors.
The change in state revenue under the measure is calculated as the difference between the actual income tax revenue collected under the measure’s graduated income tax rates and the income tax revenue that would have been collected under the state’s current rate of 4.4 percent. See the Fiscal Impact section below for additional detail.
Does Amendment 87 impact TABOR refunds?
The measure has no impact on current TABOR refunds or TABOR refund mechanisms. Under current law, the state is expected to collect $15 billion in income tax revenue in 2028. Under this measure, it is expected to collect $2 billion more in income tax revenue, for a total of $17 billion. The additional $2 billion is exempt from the TABOR limit. The TABOR limit and the amount of revenue subject to the limit remain the same, and estimated TABOR refunds will not change. For additional information, see the LCS memorandum titled, “A Brief Overview of the TABOR Revenue Limit.”1
How will the additional revenue be spent?
The increased revenue collected under Amendment 87 must be spent on K-12 education, health care, and early childhood care and education. It must add to, and not replace, spending on those services. The state legislature will decide what specific programs will receive additional funding and how much.
What happens if Amendment 87 and Proposition 136 both pass?
Proposition 136 limits the state income tax rate at the current law rate of 4.4 percent. If both Amendment 87 and Proposition 136 are approved by voters, the proposed tax rates for income over $500,000 in Amendment 87 would be higher than the 4.4 percent limit in Proposition 136.
Generally, when parts of voter-approved measures conflict, the policy outcome is determined by the measure that received more votes. However, if both measures are approved by voters, the exact outcome is unclear. The state legislature or a court will need to determine how to resolve any conflicts.
Arguments For Amendment 87
1) Amendment 87 cuts taxes for 97 percent of taxpayers, including most households and small businesses, while increasing taxes only for top earners who have the ability to pay. A graduated income tax is more equitable than a flat tax because it recognizes a fundamental economic reality: each dollar taxed on someone earning $30,000 imposes a far greater hardship than each dollar taxed on someone earning $1 million. By aligning tax rates with taxpayers’ financial means, a graduated tax distributes the burden more justly across all income levels, lowers taxes for most
Online at: leg.colorado.gov/bluebook
households and small businesses, and puts more money in the hands of working families who will spend it in their local communities.
2) The measure funds critical services at a time when additional funding is desperately needed. Crucial programs are at risk of further cuts because of changes in federal policy. Revenue from the graduated tax will fund education, health care, and child care, public services that many Colorado households rely on. Colorado public schools are significantly underfunded, and constraints on the state budget make Medicaid cuts increasingly likely. Additional funding will provide more security for the people who depend on these services.
3) The graduated income tax is not an experiment, but a proven approach for funding essential public services. The federal government and 27 other states already have a graduated income tax. This tax structure lessens rising wealth inequality and increases funding for state programs. Sales and property taxes place greater burdens on lower-income households, and a graduated income tax corrects for this inequity while also funding services for all Coloradans.
Arguments Against Amendment 87
1) The measure is a multibillion-dollar tax increase, and hiking taxes on higher incomes will harm Colorado’s economy. Higher tax rates make Colorado a less competitive place to start and grow a business, and may encourage some high earners to leave the state entirely. When businesses and high-earning individuals relocate, people at all income levels may lose their jobs. Further, because the brackets do not increase with inflation, more and more taxpayers will pay these higher taxes each year. Colorado cannot risk employers and jobs fleeing the state because our taxes are too high. Keeping taxes competitive for everyone fuels economic activity and builds a stronger, more prosperous Colorado for all.
2) The measure is an attack on the fair and predictable tax system that TABOR currently guarantees. The state’s current flat tax is fair because everyone has equal access to state services, high-income earners already pay more taxes, and low-income earners qualify for more tax deductions and credits. The state should better prioritize the tens of billions of dollars it already collects, rather than switch to a new, complicated tax system.
3) The measure will permanently expand the size of government, increase careless and wasteful spending of taxpayer dollars, and hinder economic growth. Instead of spending billions of dollars more on broadly defined government services, state policy should focus on lowering taxes for everyone or funding specific programs that are proven to help Colorado’s residents.
Information about the organizations supporting and opposing this measure is available on the Colorado Secretary of State's website:
www.coloradosos.gov/pubs/elections/Initiatives/ballot/contacts/2026.html
Fiscal Impact of Amendment 87
Taxpayer Impacts
Amendment 87 will decrease the amount of income tax owed by taxpayers with Colorado taxable income of less than $510,834 and increase the amount of income tax owed by taxpayers with Colorado taxable income of $510,834 and above. State law requires Legislative Council Staff to estimate the potential tax burden on affected taxpayers within specified federal adjusted gross income categories. Federal adjusted gross income is total income from all sources, with certain adjustments, as determined when filing federal income taxes. Colorado taxable income, calculated when filing state income taxes, is based on federal adjusted gross income with additional adjustments required or allowed under state law. Table 3 shows the expected change in tax burden by federal adjusted gross income category. The measure has no impact on current TABOR refunds or TABOR refund mechanisms.
Table 3: Estimated Impact on Taxpayers by Income (Blue Book p. 38)
| Income Category | Estimated Number of Taxpayers | Total Change in Tax Burden | Average Change in Tax Burden |
|---|---|---|---|
| $14,999 or less | 579,309 | -$638,951 | -$1 |
| $15,000 to $29,999 | 408,924 | -$16,093,434 | -$39 |
| $30,000 to $39,999 | 272,616 | -$29,611,480 | -$109 |
| $40,000 to $49,999 | 238,539 | -$38,651,945 | -$162 |
| $50,000 to $69,999 | 443,000 | -$85,925,358 | -$194 |
| $70,000 to $99,999 | 408,912 | -$93,232,609 | -$228 |
| $100,000 to $149,999 | 408,912 | -$115,554,178 | -$283 |
| $150,000 to $199,999 | 238,532 | -$77,522,900 | -$325 |
| $200,000 to $249,000 | 102,228 | -$33,224,100 | -$325 |
| $250,000 to $499,999 | 204,456 | -$66,448,200 | -$325 |
| $500,000 to $999,999 | 55,900 | -$15,893,609 | -$284 |
| $1,000,000 or more | 46,328 | $1,208,468,497 | +$26,085 |
Income is federal adjusted gross income, not Colorado taxable income; therefore, the income ranges and tax rates do not align with those in Table 2. The estimated number of taxpayers column counts joint filers as one taxpayer. Estimates are based on Colorado Department of Revenue data for all residents for tax year 2023 and Legislative Council Staff estimates.
State Revenue
By replacing the state flat income tax with a graduated income tax, the measure increases revenue from income taxes by an estimated $958.4 million in budget year 2026-27, $1.972 billion in budget year 2027-28, and increasing amounts in future years based on income and population growth. The estimate for budget year 2026-27 represents a half-year impact for tax year 2027. The additional revenue will be credited to the Colorado Future’s Account created in the measure. The increased revenue is exempt from TABOR as a voter-approved revenue change. The state budget year begins each July 1 and ends on June 30.
State law requires Legislative Council Staff to include an estimate of the maximum dollar amount of the change in state government revenue for the first full fiscal year of a proposed tax increase. This is the number that appears in the ballot question. The estimates in the previous paragraph represent the revenue impact of the measure under the current Legislative Council Staff revenue forecast. Based on forecast error that could occur, the maximum dollar amount of the change in state government revenue and fiscal year spending for budget year 2027-28 is estimated as an increase of $2.7 billion.
State Spending
The measure increases the amount of state revenue available to spend for the purposes identified in the measure, including K-12 education, health care, and early childhood care and education, in FY 2026-27 and future fiscal years. To administer the tax rate change, the measure is expected to increase one-time spending in the Department of Revenue by $98,000.
School District Revenue and Spending
The measure increases available state funding to school districts. The exact amount distributed to school districts will depend on decisions made by the General Assembly when allocating money from the Colorado Future’s Account.
State Spending and Tax Increases
Article X, Section 20, of the Colorado Constitution requires that the following fiscal information be provided when a tax increase question is on the ballot:
- estimates or actual amounts of state fiscal year spending for the current year and each of the past four years with the overall percentage and dollar change; and
- for the first full year of the proposed tax increase, estimates of the maximum dollar amount of the tax increase and of fiscal year spending without the increase.
“Fiscal year spending” is a legal term in the Colorado Constitution. It equals the amount of revenue subject to the constitutional spending limit that the state or a district is permitted to keep and either spend or save for a single year. Table 4 shows state fiscal year spending for the current year and each of the past four years.
Table 4: State Fiscal Year Spending (Blue Book p. 39)
| Fiscal Year | FY 2022‑23 (actual) | FY 2023‑24 (actual) | FY 2024‑25 (actual) | FY 2025‑26 (actual) | FY 2026‑27 (estimated) |
|---|---|---|---|---|---|
| Fiscal Year Spending | $16.66 billion | $18.07 billion | $19.15 billion | $19.84 billion | $20.50 billion |
Four-Year Dollar Change in State Spending: $3.85 billion
Four-Year Percent Change in State Spending: 23.1 percent
Table 5 shows the maximum revenue expected from the income tax increase in Amendment 87 for FY 2027-28, the first full fiscal year for which the tax increase would be in place, and an estimate of state fiscal year spending without the tax increase.
Table 5: Estimated State Fiscal Year Spending and the Proposed Tax Revenue Increase (Blue Book p. 40)
| FY 2027‑28 Estimate | |
|---|---|
| Fiscal Year Spending Without the Tax Increase | $24.62 billion |
| Revenue Increase from Increased Income Taxes | $2.7 billion |
Latest news
Recent reporting from a range of outlets, newest first. We link to it; we don't endorse it.
- 2026-10-02 The Colorado Sun: Amendment 87: A graduated income tax would raise taxes on high earners in Colorado
- 2026-09-26 Complete Colorado: Colorado media, state government tilt scale for Amendment 87
- 2026-09-25 CPR News: Amendment 87: Graduated Income Tax
- 2026-09-22 Colorado Politics (guest column): Ballot questions 87, NN play Colorado voters for suckers
- 2026-09-04 Complete Colorado (opinion): Amendment 87: A long-term tax increase for all Coloradans
- 2026-09-03 The Colorado Sun: Calculate how your Colorado income tax bill would change if Amendment 87 passes
Coverage of all the statewide measures
- 2026-10-06 Rocky Mountain Voice: What's on your 2026 Colorado ballot: all 14 statewide measures
- 2026-09-25 Colorado Politics: Major donors fuel Colorado ballot measure fights across the state
- 2026-09-25 CPR News: 2026 Colorado state ballot measures voter guide
Full text of the measure
This measure changes existing law. The printed Blue Book shows new wording in capital letters and wording being removed in strikeout type, which we can't reproduce reliably here. Read it in the Blue Book, pages 79 to 84 (PDF) .
Read more
- 2026 Blue Book (PDF) , including the full legal text of the measure
- Colorado Secretary of State: who is registered for and against
- TRACER: Colorado campaign finance filings
What people are saying
Official campaign accounts on each side, and public posts. Links only: nothing here loads from social media sites. We link to posts; we don't endorse them.
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