Money in Colorado is getting a bit complicated lately. If you’ve lived in the Centennial State for more than a few years, you’re probably used to the annual ritual of checking the news to see how much "free" money the government is sending back. It’s the Taxpayer’s Bill of Rights—TABOR—at work. But the CO TABOR refund 2025 isn't going to be a carbon copy of the massive checks we saw back in 2023 or even 2024.
Honestly, there’s a lot of confusion floating around. Some people think they’re getting $800 again. Others heard the surplus is gone. The truth is somewhere in the middle, and it depends heavily on when you file and how much you earned.
The $2 Billion Question: How Much Is the 2025 Payout?
Last year was a bit of an anomaly because the legislature decided to "flatten" the refunds, giving everyone the same amount regardless of what they made. For the CO TABOR refund 2025, the state is mostly reverting to a tiered system. This means the more you earned (and theoretically the more sales tax you paid), the bigger your slice of the pie.
Based on the $2 billion surplus from the 2024 fiscal year, here is roughly what the breakdown looks like for your 2024 tax return (filed in 2025):
- Single filers making up to $53,000 can expect around **$177**.
- If you’re in the $105,001 to $166,000 bracket, that jumps to about $277.
- High earners (over $302,001) could see up to **$565**.
- Joint filers basically just double those numbers—so a couple making $110,000 combined is looking at **$480**.
Wait, there’s a catch.
If you qualify for the Property Tax/Rent/Heat Credit (PTCRE)—usually low-income seniors or residents with disabilities—the state is actually being much more generous. Those folks are slated for a flat $1,130 rebate. It’s a way to target the relief where it’s needed most while the rest of us get the tiered "Sales Tax Refund" amounts.
It’s Not Just a Check: The Stealth Refund
You might not even notice part of your refund.
Governor Jared Polis signed Senate Bill 24-228 into law, which changed the "pecking order" of how TABOR surplus gets returned. One of the first things that happens now is a temporary income tax rate reduction.
For the 2024 tax year (which you are reconciling right now in early 2025), the income tax rate dropped from 4.40% down to 4.25%.
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Think about that. You won't see that money as a separate check in the mail. Instead, it’s already baked into your tax return calculations. If you’re a small business owner or a freelancer making $100,000, that 0.15% cut just saved you **$150** before you even looked at the sales tax refund line.
Who Actually Gets the Money?
You can't just move to Denver in November and expect a check. The rules are pretty firm:
- Full-year residency: You had to live in Colorado for the entire 2024 calendar year.
- Age: You must have been at least 18 by January 1, 2024.
- The Paperwork: You must file a 2024 Colorado state income tax return (Form DR 0104) or the PTC Rebate application.
Even if you don't owe any taxes—maybe you’re a student or retired—you still have to file. If you don't file, the state assumes you don't want the money. They aren't going to hunt you down to give it to you.
When Does the Money Hit Your Account?
Timing is everything. If you’re one of those people who files the second the W-2 hits your inbox in January, you’ll see your money much faster.
For most people, the TABOR refund is simply added to their regular state tax refund. If you’re getting $200 back from over-withholding and you qualify for a $177 TABOR credit, your total refund becomes **$377**.
If you file by the April 15, 2025 deadline, you’ll usually see the money via direct deposit within a few weeks. If you’re a procrastinator and wait until the October extension, expect to wait until late 2025 or even early 2026 to see that cash.
Why 2026 Looks a Little Scary
I hate to be the bearer of bad news, but if you’re planning your 2026 budget around a big TABOR check, you might want to rethink that.
The latest forecasts from the Colorado Fiscal Institute and state economists show the surplus shrinking fast. Why? Because the state has started diverting that "excess" revenue into new programs before it ever reaches the TABOR cap. We’re talking about things like the Family Affordability Tax Credit and expanded child tax credits.
By the time the 2025 fiscal year ends (June 30, 2025), the projected surplus is only around $108 million. Compare that to the $2 billion we're dealing with right now. It's a massive drop. Current projections suggest that for the 2026 tax season, the refund might be as low as **$20 to $40**.
Basically, the era of the $800 "Colorado Dividend" checks is ending for a while.
Actionable Steps for Tax Season
- Check your residency status: If you moved in or out of Colorado in 2024, you're likely ineligible for the main refund, but check the "part-year resident" rules just in case you qualify for a pro-rated amount.
- Don't skip the PTC: If you're low-income or a senior, the DR 0104PTC form is your golden ticket to the $1,130 amount. Don't leave that on the table.
- Look for Line 35: When you’re reviewing your state return (Form DR 0104), look for the line labeled "State Sales Tax Refund." That’s where your TABOR money lives.
- Verify your address: If you aren't doing direct deposit, make sure the Department of Revenue has your current address. TABOR checks are a prime target for mail theft and "return to sender" loops.
The CO TABOR refund 2025 is a nice little windfall, but with the income tax rate cut and the return to tiered payments, it’s more of a "nice dinner out" than a "pay off the car" type of year for most of us.