Colorado will send refunds to most taxpayers in 2025 because the state collected more tax revenue than the TABOR law allows it to keep
The Taxpayer Bill of Rights (TABOR) is a Colorado constitutional rule that limits how much tax money the state can spend each year. When Colorado collects more revenue than that limit allows, the excess must be returned to taxpayers. For 2025, the state is returning money because 2024 tax collections exceeded the TABOR cap.
The refund is not a rebate you request or a credit you claim on your return. Colorado's Department of Revenue calculates who gets money and how much based on tax records already on file. Most people who filed a 2024 Colorado income tax return will receive a check or direct deposit automatically.
The exact amount varies by income level and filing status. Higher earners receive larger refunds than lower earners, because TABOR refunds are distributed proportionally based on the taxes each person paid. A single filer who earned $30,000 will receive a different amount than someone who earned $100,000.
Key Takeaways
- Colorado's TABOR law requires the state to return tax revenue that exceeds a set spending limit, and 2025 is a refund year.
- You do not need to do anything to receive your refund if you filed a 2024 Colorado income tax return; the state sends it automatically.
- The refund amount depends on your 2024 income and filing status, with higher earners receiving larger refunds.
- Refunds are typically distributed by check or direct deposit starting in spring, though the exact timing depends on how the state processes them.
- If you did not file a 2024 return but had Colorado income, you may still be may have access to to a refund by filing a return.
How much money will you receive
The state does not announce a single dollar amount per person because the refund is divided among all may be able to access taxpayers based on their share of total tax paid. The Department of Revenue calculates each person's refund by taking the total surplus revenue, dividing it by the total taxes collected, and multiplying that percentage by what each individual paid.
For example, if the surplus is $100 million and total state income taxes collected were $10 billion, the refund rate is 1 percent. A person who paid $5,000 in Colorado income tax would receive $50. A person who paid $10,000 would receive $100.
The actual 2025 refund amount will be announced by the Colorado Department of Revenue once they finalize 2024 tax year data. You can check the department's website or wait for official communication from the state to learn the specific percentage or dollar amount for your situation.
Who receives a TABOR refund and who does not
You are may be able to access for a refund if you filed a 2024 Colorado income tax return and had a tax liability (meaning you owed taxes, even if you had them withheld from paychecks). People who filed returns and received refunds because they overpaid are also may be able to access for the TABOR refund.
You are not may be able to access if you did not file a 2024 Colorado return, even if you lived in Colorado and earned income. You are also not may be able to access if you filed a return but had no Colorado income tax liability for the year.
Non-residents who worked in Colorado and filed a return are may be able to access. Military members stationed in Colorado may have different rules depending on their home state; check with the Department of Revenue if you are unsure.
When and how you will receive your refund
The state typically begins distributing TABOR refunds in spring, though the exact month varies year to year depending on when the legislature approves the refund and how quickly the Department of Revenue can process payments. In past years, refunds have been sent between April and June.
If you filed your 2024 return electronically and provided direct deposit information, your refund will be deposited into that account. If you filed on paper or did not provide banking details, you will receive a check by mail. Checks can take two to three weeks to arrive after being mailed.
You do not need to do anything to receive the refund. The state will use the address and banking information from your 2024 tax return. If you moved after filing, update your address with the Department of Revenue so the check reaches you.
What to do if you did not file a 2024 return but had Colorado income
If you earned Colorado income in 2024 but did not file a return because you thought your income was too low or you were not required to file, you may still be may have access to to a TABOR refund. Filing a return after the April important date is still possible, and the state will include you in the refund distribution once your return is processed.
Contact the Colorado Department of Revenue or a tax professional to determine whether you should file. If you are may have access to to a refund and file late, you will receive it along with other refunds, though there may be a delay while your return is processed.
Keep in mind that filing a return can also uncover other tax credits or refunds you may have missed, such as the Earned Income Tax Credit. Filing is worth exploring even if you are only interested in the TABOR refund.
Tracking your refund status
The Colorado Department of Revenue does not typically offer a real-time refund tracker for TABOR refunds the way the IRS does for federal refunds. Instead, the state announces the refund schedule and distribution dates publicly.
Check the Department of Revenue website for announcements about when refunds will be sent and what to expect. If you have questions about whether you are may be able to access or when your refund will arrive, you can contact the department directly by phone or through their website.
If you filed electronically with direct deposit, your refund should arrive within a few business days of the deposit date. If you are receiving a check, allow two to three weeks from the mailing date for it to arrive.
What happens if you owe Colorado taxes or child support
If you owe back taxes to Colorado, the state may offset your TABOR refund to pay down that debt before sending you the remaining balance. The same applies if you owe child support or other court-ordered obligations that the state can intercept.
If you know you owe back taxes or have a child support obligation, contact the Department of Revenue or the appropriate agency before the refund is distributed. In some cases, you may be able to set up a payment plan that prevents the offset.
You will receive notice if your refund is offset. The notice will explain what debt was paid and how much of your refund was applied.
Frequently Asked Questions
Do I have to pay federal taxes on my TABOR refund?
No. TABOR refunds are not considered income for federal tax purposes. You do not report them on your federal return, and they do not affect your federal tax liability.
What if I moved out of Colorado after filing my 2024 return?
Update your address with the Colorado Department of Revenue so your refund check reaches you. If you provided direct deposit information, the refund will go to that account regardless of where you live now. If you moved and did not update your address, the check may be returned to the state, and you will need to contact the department to claim it.
Can I use my TABOR refund to pay my 2025 Colorado taxes?
No. The refund is sent to you as a separate payment and is not automatically applied to future tax liability. If you want to use it toward 2025 taxes, you would need to make a voluntary payment to the state.
What if I think I should have received a refund but did not?
Contact the Colorado Department of Revenue with your name, Social Security number, and 2024 tax return information. They can verify whether you were included in the refund distribution and explain why if you were not.
Is the TABOR refund the same every year?
No. TABOR refunds only happen when the state collects more revenue than the law allows it to keep. Some years there is no refund. The amount and timing vary based on state revenue and spending.