In October 2024, the Colorado Department of Revenue announced that it will offer a TABOR tax refund in 2025. The Colorado government has informed that they have collected $1.7 billion ($1.4 billion of 2024 + the remaining from the previous year) in revenue from the TABOR limit, which offers relief to taxpayers via all three mechanisms.
TABOR surplus is refunded to the Colorado taxpayers through income tax rate reduction, sales tax refund, and local government property tax exemption. The Colorado taxpayers who have filed their income tax return before 15 April 2025 are expecting their tax refund.
The Taxpayer’s Bill of Rights says that if the state collects revenue more than the TABOR limit, it needs to pay the excess revenue back to the taxpayers in the same fiscal year. With the tax rate reduction and property tax reimbursement, the Coloradans will gain many benefits from the TABOR.
| Revenue Collected over the limit in 2024 | $1.4 billion |
| Total Revenue for TABOR refund 2025 | $1.7 billion with last year’s collections |
| Refund distribution has three mechanisms | Tax Rate reduction
Sales Tax Refund Property Tax Reimbursement |
| Refund Amount | Over $15 will be issued based on income |
| Max. Amount | Up to $1130 |
| Payout Expected | With a Tax refund |
| Who qualifies? | Coloradans who paid 2024 taxes before the deadline or filed for extension and lived in the state for a full year |
| Track status | Colorado Where’s My Refund |
| Official Website | https://tax.colorado.gov/ |
Refund Amount
The Coloradans who have filed for the TABOR surplus sales tax refund for 2025 when they filed their 2024 tax return this year, can expect the refund based on the adjusted gross income and the filing status in the following manner if they qualify for the six-tier mechanism:
| Income | Single Filers | Married and Joint Filers |
| Up to $53,000 | $177 | $354 |
| $53,001 – $105,000 | $240 | $480 |
| $105,001 – $166,000 | $277 | $554 |
| $166,001 – $233,000 | $323 | $646 |
| $223,001 – $302,000 | $350 | $700 |
| $302,001 and above | $565 | $1130 |
The six-tier system described above will be used to process the taxpayer’s return if it exceeds $15, based on their income range. However, if the refund amount is $15 or less $15, the refund will be the same for the taxpayers without depending on their income.
Who can receive it?
The Coloradans who meet the following conditions will receive the TABOR tax refund from the excess revenue:
- Coloradans who live in the State and are full-year residents.
- Coloradans who have filed their 2024 tax year individual returns before the deadline of April 15, 2025, or claimed the PTC rebate and are not claimed as a dependent on anyone’s tax returns.
- Coloradans who have applied for the tax extension to file the return till 15 October 2025 can also claim when they have wage withholding refund to claim.
When to expect?
The Coloradans who have filed the income tax return and claimed the TABOR Tax refund can expect the refund to be processed with their tax refund, as this time, the authority is not planning to issue a separate check like they did in 2022.
According to the Colorado tax system, taxpayers can receive their paper returns in six to eight weeks, whereas the refund with direct deposit can be issued in two or three weeks. Some taxpayers may have already received their TABOR surplus tax refund with their tax refund, while the taxpayers who have filed their tax refund near the deadline can expect the TABOR refund in a few weeks.
How to check the status?
Since the TABOR Refund for 2025 will be combined with the tax refund, and come with it, the taxpayers can check the status of their refund easily online in the following steps:
- First, visit the Colorado Revenue Department’s official website and select Where’s My Refund option to open the refund online portal.
- Next, click the Revenue Online Link and go to the Refund Resources section if you do not wish to log in; however, if you have login credentials, log into the portal and check your refund status.
- People who have not logged in can click the Where’s My Refund for individuals and next enter their individual income, Refund amount/ PIN, and Social Security Number/ ITIN.
- Next, click the Get My Refund option, and your Colorado tax refund status will appear on your screen.
Coloradans who have been waiting for the TABOR refund can track their tax refund and check the status of their refund for the year 2025 based on the revenue collected in 2024 and the remaining from that year too.
If you do not receive it with your tax refund, you can reach out to the Department of Revenue of Colorado and inquire about your TABOR surplus tax refund.