Colorado TABOR Refund 2025: Complete Guide to Eligibility, Payment Amounts, and Filing Deadlines Colorado residents are set to receive TABOR refunds in 2025, though the amounts will be significantly smaller than in recent years. The state has confirmed approximately $296 million in excess revenue will be returned to taxpayers through the Taxpayer’s Bill of Rights (TABOR) mechanism. Understanding who qualifies, how much you’ll receive, and when payments arrive is crucial for Colorado taxpayers planning their finances.
Table of Contents
What is the Colorado TABOR Refund 2025?
The Taxpayer’s Bill of Rights (TABOR) is a constitutional amendment approved by Colorado voters in 1992. This unique provision limits how much tax and fee revenue the state government can retain and spend each year. When state revenues exceed the TABOR cap, the surplus must be refunded to taxpayers unless voters approve otherwise.
The TABOR revenue limit is calculated based on the prior fiscal year’s limit, adjusted for inflation and population growth in Colorado. For fiscal year 2024-25, the state collected revenue exceeding this constitutional cap, triggering mandatory refunds to eligible residents.
How TABOR Works
The TABOR mechanism operates through several refund methods prescribed by state statute:
1. Property Tax Reimbursement: The Colorado Department of the Treasury first uses surplus funds to reimburse local governments for property tax exemptions claimed by seniors and disabled veterans.
2. Sales Tax Refund: Eligible residents receive a sales tax refund based on their adjusted gross income (AGI), distributed through their state income tax return or Property Tax/Rent/Heat (PTC) Rebate application.
3. Income Tax Rate Reduction: In some years, the state income tax rate may be temporarily reduced when sufficient TABOR surplus exists.
Colorado TABOR Refund 2025: Payment Amounts by Income Level
Unlike previous years when all qualifying taxpayers received equal amounts, the 2025 TABOR refunds are distributed based on income levels. This represents a significant change from the flat-rate refunds issued in 2023 and 2024.
2025 TABOR Refund Amount Table
| Filing Status | Adjusted Gross Income (AGI) | Refund Amount |
|---|---|---|
| Single Filer | $0 – $52,000 | $20 |
| Single Filer | $52,001 – $102,000 | $38 |
| Single Filer | $102,001+ | $62 |
| Joint Filer | $0 – $104,000 | $40 |
| Joint Filer | $104,001 – $204,000 | $76 |
| Joint Filer | $204,001+ | $124 |
These modest refund amounts reflect the smaller surplus collected in fiscal year 2024-25 compared to the historic surpluses of 2022 and 2023, when refunds totaled $3.7 billion combined.
Historical TABOR Refund Comparison
| Tax Year | Total Surplus | Typical Refund Amount |
|---|---|---|
| 2022 | ~$1.85 billion | $750-$1,500 |
| 2023 | ~$1.85 billion | $800-$1,600 |
| 2024 | ~$1.35 billion | $177-$1,130 |
| 2025 | ~$296 million | $20-$124 |
According to the Colorado Legislative Council’s economic forecast, no TABOR refunds are projected for tax year 2026 (payments in 2027) as the state anticipates staying below the TABOR cap for the first time since the pandemic.
Who is Eligible for Colorado TABOR Refund 2025?
To qualify for the Colorado TABOR Refund 2025, you must meet ALL of the following requirements:
Eligibility Requirements Checklist
✅ Age Requirement: You must be at least 18 years old on or before January 1, 2024
✅ Residency Requirement: You must have been a full-year Colorado resident for the entire 2024 calendar year
✅ Filing Requirement: You must file a 2024 Colorado Individual Income Tax Return (Form DR 0104) OR a 2024 Property Tax/Rent/Heat (PTC) Rebate Application
✅ Tax Status: You must either:
- Have Colorado income tax liability, OR
- Claim a refund of wage withholding
Who is NOT Eligible?
❌ Part-year Colorado residents
❌ Non-residents
❌ Individuals claimed as dependents on someone else’s tax return
❌ Those who were incarcerated or committed to the Department of Human Services for 180 days or more during the state fiscal year (July 2024 – June 2025)
❌ Those who fail to file a qualifying tax return or PTC application by the deadline
Important Note: You do NOT need a Social Security Number to qualify. Colorado residents can use an Individual Taxpayer Identification Number (ITIN) when filing their state taxes to receive the TABOR refund.
How to Claim Your Colorado TABOR Refund 2025
The process for claiming your Colorado TABOR Refund 2025 is straightforward, as it’s automatically included with your state tax return filing. Here’s what you need to know:
Step 1: File Your Colorado TABOR Refund 2025
You must file one of the following by October 15, 2025:
- Colorado Individual Income Tax Return (Form DR 0104): This is the standard state tax return for most residents
- Property Tax/Rent/Heat (PTC) Rebate Application: This option is available for low-income residents who may not otherwise need to file a tax return
Step 2: Wait for Processing
Unlike the 2022 Colorado Cash Back program, which issued separate checks, the 2025 TABOR refund will be combined with your regular tax refund (if you’re owed one). The Colorado Department of Revenue will automatically calculate your TABOR refund amount based on your AGI and filing status.
Step 3: Receive Your Payment,Colorado TABOR Refund 2025
Refunds are issued in one of two ways:
Direct Deposit: If you provided valid banking information on your tax return, your refund (including the TABOR portion) will be deposited directly into your account. This is the fastest method.
Paper Check: If you didn’t provide banking information or if direct deposit fails, the Department of Revenue will mail a paper check to your address on file.
Important Filing Deadlines
| Deadline | Applies To |
|---|---|
| April 15, 2025 | Standard tax filing deadline |
| October 15, 2025 | Extended deadline (requires filing extension) |
| October 15, 2025 | Final deadline to receive TABOR refund |
Critical Warning: Returns filed after October 15, 2025, CANNOT receive the TABOR refund, even if you’re otherwise eligible. This is a hard deadline established by state law.
Colorado TABOR Refund 2025 Payment Schedule
The timing of your TABOR refund depends on when you file your tax return and how you choose to receive payment.
Expected Payment Timeline
Early Filers (Filed by April 15, 2025):
- Direct deposit payments: Mid-April to late May 2025
- Paper checks: Late May to early June 2025
Extension Filers (Filed April 16 – October 15, 2025):
- Direct deposit payments: 2-4 weeks after filing
- Paper checks: 4-8 weeks after filing
According to the Colorado State Auditor’s Office, the Department of Revenue is responsible for issuing all TABOR refunds by June 30, 2026. However, most taxpayers who file on time should receive their refunds much earlier, typically within their regular tax refund processing timeframe.
Tracking Your Colorado TABOR Refund 2025
If you haven’t received your refund within the expected timeframe, you can:
- Check online: Use the “Where’s My Refund?” tool at Revenue Online
- Call the Department: Contact the Colorado Department of Revenue at (303) 238-7378
- Wait period: Allow at least 30 days after the expected delivery date before inquiring about a missing payment
Why Are 2025 TABOR Refunds So Small?
Many Colorado taxpayers are disappointed by the significantly reduced refund amounts for 2025. Several factors contributed to the smaller surplus and lower refunds:
1. Expanded Tax Credits
The state legislature passed new and expanded tax credit programs that reduce the TABOR surplus available for general refunds:
- Expanded Colorado Earned Income Tax Credit (COEITC): Provides larger credits to lower-wage workers
- New Family Affordability Tax Credit (FATC): Offers tax relief to families with children
- Other targeted tax credits: Various credits aimed at specific taxpayer groups
These credits are paid from the same surplus fund used for TABOR refunds, meaning less money is available for the general refund mechanism.
2. Slower Revenue Growth
Colorado’s economic growth moderated in 2024, resulting in smaller revenue surpluses. The Colorado Fiscal Institute reported that the state exceeded the Referendum C Cap by only $108 million for the 2025 tax year, compared to billions in previous years.
3. Budget Constraints
Paradoxically, Colorado faces a projected $307 million budget deficit for fiscal year 2026-27, even while issuing TABOR refunds for 2025. This creates a challenging fiscal environment where the state must return revenue to taxpayers while simultaneously cutting spending in other areas.
According to CPR News, state economists predict this will be the last year of TABOR refunds for the near term, with no refunds expected for tax year 2026 before potentially resuming at higher amounts in 2027.
What About Future TABOR Refunds?
The outlook for Colorado TABOR refunds beyond 2025 is uncertain:
2026 Tax Year (Refunds in 2027)
No TABOR refunds expected – This would be the first year since the pandemic without refunds, as the state is projected to stay below the TABOR cap.
2027 Tax Year (Refunds in 2028)
Refunds expected to resume – Legislative forecasts suggest TABOR refunds will return, potentially at higher amounts ranging from $43-$137 depending on income level.
TABOR Legal Challenges
In 2025, some Colorado legislators introduced a bill that would file a lawsuit challenging TABOR’s constitutionality under the U.S. Constitution’s guarantee of a “republican form of government.” If successful, this could fundamentally alter or eliminate the TABOR refund program entirely.
However, Kiplinger reports that Republican lawmakers and many taxpayers strongly oppose this effort, viewing TABOR as an important taxpayer protection. As of December 2025, the outcome of this political battle remains uncertain.
Additional Tax Benefits for 2025
While TABOR refunds are smaller, Colorado taxpayers benefit from other tax reductions in 2025:
Income Tax Rate Reduction
Senate Bill 24-228, signed by Governor Jared Polis in May 2024, reduced Colorado’s state income tax rate from 4.40% to 4.25% for tax year 2024. This reduction automatically applies when you file your 2024 state income tax return and saves taxpayers money beyond the TABOR refund.
For a taxpayer with $75,000 in taxable income, this rate reduction saves approximately $112.50 annually – more than the TABOR refund itself for many middle-income filers.
Enhanced Tax Credits
Several enhanced tax credits are available for qualifying taxpayers in 2025:
Colorado Earned Income Tax Credit (COEITC): Provides 38% of the federal EITC amount to lower-income working families. No Social Security Number required – ITIN filers can claim this credit.
Family Affordability Tax Credit (FATC): New credit for families with children, providing additional tax relief based on family size and income.
Child Tax Credit: Colorado offers its own child tax credit for qualifying families.
Common Questions About Colorado TABOR Refund 2025
Can I receive a TABOR refund if I owe taxes?
Yes! As long as you meet the eligibility requirements and file a tax return by October 15, 2025, you’ll receive your TABOR refund even if you owe state taxes. However, if you owe back taxes or have other debts to state agencies, your refund may be offset to pay those debts.
What if I moved to Colorado in 2024?
Part-year residents are NOT eligible for TABOR refunds. You must have been a full-year Colorado resident for the entire 2024 calendar year to qualify.
Do I need to take any special action to claim my refund?
No special action is required beyond filing your Colorado state tax return or PTC application by the October 15, 2025 deadline. The refund is automatically calculated and included with your regular refund.
Will my TABOR refund be taxed?
TABOR refunds are generally not subject to federal income tax, as they’re considered a return of excess state taxes paid. However, consult with a tax professional for your specific situation.
What if I file my return late?
If you file your Colorado tax return after October 15, 2025, you will NOT receive the TABOR refund, even if you’re otherwise eligible. This deadline is absolute and established by state statute.
How to Maximize Your Colorado Tax Benefits in 2025
While the TABOR refund amounts are modest, you can maximize your overall tax benefits:
1. File Early
Filing your tax return early in the tax season (January-February) ensures faster processing and earlier refund delivery.
2. Use Direct Deposit
Providing accurate banking information on your tax return speeds up refund delivery by 2-3 weeks compared to paper checks.
3. Claim All Available Credits
Make sure you’re claiming all tax credits you’re eligible for, including:
- Colorado Earned Income Tax Credit
- Family Affordability Tax Credit
- Child Tax Credit
- Property Tax/Rent/Heat Credit (for qualifying low-income residents)
4. File Electronically
Electronic filing reduces errors and speeds up processing compared to paper returns.
5. Don’t Miss the Deadline
Mark October 15, 2025, on your calendar as the absolute final deadline to receive your TABOR refund.
Resources and Additional Information
For more information about Colorado TABOR refunds and state taxes:
- Colorado Department of Revenue – TABOR Information
- Colorado Department of Revenue – Tax Help
- Revenue Online – File and Check Refunds
- Get Ahead Colorado – Tax Credit Information
- Colorado Legislative Council – Economic Forecasts
- Colorado State Auditor’s Office
- Colorado Fiscal Institute
- Axios Denver – TABOR Coverage
- CPR News – State Government Coverage
- Kiplinger Tax Guide
For tax filing assistance, contact:
- Colorado Department of Revenue: (303) 238-7378
- Taxpayer Service Centers: Available throughout Colorado for in-person assistance
Similar to other government payment programs like the IRS $2,000 Direct Deposit updates and $2,000 Stimulus Check information, staying informed about payment schedules and eligibility requirements is essential for receiving your benefits.
Final Thoughts on Colorado TABOR Refund 2025
While the 2025 TABOR refunds are substantially smaller than in recent years, they still represent a constitutional guarantee that excess state revenue will be returned to taxpayers. The amounts range from $20 to $124 depending on your income and filing status – enough for a meal out, a tank of gas, or a modest contribution to your savings.
The key to receiving your TABOR refund is meeting the October 15, 2025 filing deadline. Mark your calendar, gather your tax documents, and file your Colorado state tax return on time to ensure you receive every dollar you’re entitled to.
With no TABOR refunds expected for 2026 and potential legal challenges to the TABOR mechanism itself, 2025 may represent an important year in the program’s history. Colorado taxpayers should stay informed about these developments and make their voices heard through the political process.
Whether you’re receiving $20 or $124, every bit helps in today’s economy. File on time, provide accurate information, and you’ll receive your TABOR refund along with your regular tax refund in 2025.
Disclaimer: This article provides general information about the Colorado TABOR refund program based on official sources and current law as of December 2025. Tax laws and regulations can change. For personalized tax advice, consult with a qualified tax professional or contact the Colorado Department of Revenue directly. This article is for informational purposes only and does not constitute legal or financial advice.
