Self-employed in Colorado Springs, CO: taxes and retirement for 2026

Guides for Colorado Springs

Colorado Springs local rules

Local income tax

No city income tax in Colorado Springs.

City of Colorado Springs sales and use tax

Retailers doing business in the city must hold a city Sales & Use Tax License and collect the 3.07% city sales tax (in effect since Jan. 1, 2021). Colorado Springs collects its own tax, so returns are filed with the city through its GenTax portal rather than with the state.

City business license

No general business license; only the business types listed on the City Clerk's licensing site need one. Most home-based businesses do need a Home Occupation Permit from Planning and Development.

Also worth knowing

The city's Home Occupation Permit page tells home-based operators to check with the Sales Tax Division on whether a Sales Tax License is required (https://coloradosprings.gov/planning-and-development/page/home-occupation-permit). The 3.07% rate replaced 3.12% on Jan. 1, 2021, and the city lists it as current. The finding that the city has no occupational privilege tax relies on the Tax Foundation (a secondary source); no official statewide list of OPT cities was found. No city gig-worker ordinance was found.

Colorado rules that apply in Colorado Springs

State income tax (2026)

Colorado has a flat 4.4% state income tax for 2026. The statutory rate is 4.40% (Proposition 121, starting tax year 2022), and the 2026 DR 0104EP worksheet figures estimated tax at 4.4%. Under SB24-228 (tax years 2024 through 2034), the rate can be temporarily lowered for a tax year when TABOR surplus revenue passes set thresholds. The 2026 estimated tax form does not reflect any reduction for 2026.

State estimated tax

You generally must pay estimated tax if you expect to owe more than $1,000 in net Colorado tax for 2026 after withholding and credits. The required annual payment is the smaller of 70% of your 2026 tax or 100% of your 2025 tax (110% if your 2025 federal AGI was over $150,000). Same dates as federal: April 15, June 15, and September 15, 2026, and January 15, 2027. Form DR 0104EP.

Minimum wage (2026)

$15.16 an hour; tipped cash wage $12.14 an hour. The maximum tip credit is $3.02. Local 2026 minimums: Denver $19.29 ($16.27 tipped), Edgewater $18.17 ($13.50 tipped), City of Boulder $16.82 ($13.80 tipped), and unincorporated Boulder County $16.82. CDLE announced on August 13, 2026 that the state rate rises to $15.71 ($12.69 tipped) in 2027.

Unemployment insurance independent contractor test (C.R.S. 8-70-115)

A worker is presumed to be in covered employment unless shown to be free from control and direction and customarily engaged in an independent trade or business related to the work. A signed written contract with the statutory clauses and a bold disclosure (no unemployment benefits; contractor pays own income taxes) creates a rebuttable presumption of independent contractor status.

Delivery network company driver protections (HB24-1129, C.R.S. 8-4-126)

Since January 1, 2025, delivery apps must show drivers and customers what the customer paid and what the driver receives, along with delivery distances. They must pass through 100% of tips and cannot cut base pay because of a tip. They must also publish a written deactivation policy with a challenge process and give drivers at least 60 seconds to accept an offer.

Transportation network company transparency (SB24-075, C.R.S. 8-4-127)

Rideshare companies must tell drivers and riders what the rider paid and what the driver was paid. Since June 1, 2025, they must follow a written deactivation and suspension policy with a reconsideration process, and starting October 1, 2025, a state-certified driver support organization can represent drivers in deactivation and suspension cases.

State retirement program

Colorado SecureSavings is live. It is built around W-2 employers and does not cover 1099 contractors through the employer mandate; self-employed residents can enroll on their own.

Questions

Track it in one place

Gigaverse estimates your quarterly taxes from what you actually earn, logs business trips, categorizes expenses from your bank and answers money questions with your own numbers.

Sources

• tax.colorado.gov/individual-income-tax-FAQ
• tax.colorado.gov/sites/tax/files/documents/DR_0104EP_2026.pdf
• cdle.colorado.gov/dlss
• cdle.colorado.gov/independent-contractors
• leg.colorado.gov/bills/hb24-1129
• leg.colorado.gov/bills/sb24-075
• taxfoundation.org/data/all/state/state-income-tax-rates-2026
• coloradosprings.gov/tax-applications-returns
• coloradosprings.gov/smallbiz

Facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.