Colorado Voters to Decide on Major Income Tax Overhaul This November
Colorado voters will decide in November on Initiative 195, a proposed overhaul of the state's income tax system. The measure would replace the current flat tax with a graduated system, increasing rates for individuals and businesses earning over $500,000 annually…
Denver, CO, September 2, 2026 — Colorado voters are set to decide on a significant change to the state’s income tax structure in the upcoming November election. Initiative 195, a ballot measure proposing an overhaul of the current system, will be presented to the electorate for a decision.
If passed, Initiative 195 would replace Colorado’s existing flat income tax with a graduated tax system. Under this proposed structure, tax rates would be increased for individuals and businesses whose annual earnings exceed $500,000. The measure’s proponents state that its implementation aims to lower tax burdens for approximately 97% of Colorado residents.
Supporters of the initiative argue that the graduated system has the potential to generate billions of dollars in revenue. These funds, they contend, could be directed towards critical state services, including education, healthcare, and childcare initiatives.
However, the proposal has also drawn opposition. Concerns have been raised by opponents regarding the potential economic impacts of the tax rate adjustments. Additionally, questions have been posed about the implications of tax caps under the proposed graduated system. Specific details regarding the exact projected revenue, potential economic consequences, and the nature of the tax caps were not provided in the summary of the trend.
The outcome of the vote in November will determine whether Colorado transitions from its current flat tax framework to the proposed graduated income tax system.
Story summarized from the original created by Maggie Bryan on www.denver7.com, see more information here.
