Colorado Voters Face Choice Between Flat Tax Cap and Progressive Tax on Nov. 3 Ballot

Voters in Colorado will decide on Nov. 3 whether to keep the current 4.4 % flat income tax or adopt a tiered structure, as two initiatives that have met signature requirements will appear side by side on the ballot. Initiative 232, backed by Advance Colorado, seeks to label the existing rate as a “Maximum Tax Rate,” effectively preventing any future increase without a separate repeal vote. Initiative 195, promoted by the Bell Policy Center, would introduce rates from 3.7 % for low earners up to 8.4 % for incomes above $1 million, with projected additional revenue of $2 billion dedicated to K-12 education, health care, Medicaid, childcare and early-education programs.

The flat-tax supporters cite Colorado’s high cost of living, while the graduated-tax advocates argue the change would ease affordability and fund essential services without triggering TABOR refunds. Initiative 232 has already been certified by the Secretary of State’s Office with 184,454 signatures, while Initiative 195 has submitted over 163,000 signatures and awaits certification. The outcome could leave the tax rate unchanged, implement the progressive schedule, or create a hybrid where the cap applies but lower rates apply to earners under $100,000.