Coloradans will receive the sales tax refund under the Taxpayer’s Bill of Rights (TABOR Surplus refund) in 2025. Under the TABOR sales tax refund, the government returns the state revenue to the taxpayers when it is more than the state limit.
The state TABOR revenue limit depends on the prior year’s fiscal year limit plus the Colorado population growth, inflation rate, and voter approval. Colorado residents must file the state income tax return or PTC rebate application to receive the refund. The deadline to file the state tax return can be 15 April 2025 or 15 October 2025, depending on certain conditions.
As per the State Auditor’s office, the state has collected $1.4 billion more in state revenue, allowing the TABOR refund for 2025 for the 2023-24 fiscal year. Coloradans can expect the maximum sales tax refunds of up to $565 (individuals) and $1130 (joint filers).
| Who qualifies? | 18 years or older Colorado residents of 2024, liable for state income tax, property tax/ rent/ heat rebate |
| Maximum Amount | $565 (individuals) and $1130 (joint filers) |
| Deadlines | Tax reduction from 4.45% to 4.25% Property tax exemption for veterans with disabilities, the elderly, and Gold Star spouses |
| Additional Ways | Tax reduction from 4.45% to 4.25% Property tax exemption for veterans with disabilities, the elderly, and Gold Star spouses |
| How to claim? | File state tax return or submit PTC rebate application |
| 2024 State Revenue | $1.4 billion above the state limit |
| Payment method | With your tax refund |
| Colorado DOR website | https://www.colorado.gov/revenueonline/ |
Who will receive it?
According to the State of Colorado, taxpayers can claim the sales tax refund if they meet the following conditions in 2024:
- You must be 18 years or older in 2024 and have lived in Colorado for all of 2024.
- You owe the Colorado State income tax return or property tax/rent/heat rebate application and need to file any of these before the deadlines.
- If you had Colorado tax liability or filed a claim for a refund for income tax withheld from your wages, the deadline changes to 15 October 2025. If you have not claimed an income tax refund for withheld taxes and do not have any tax liability, you must claim it before 15 April 2025.
The Coloradans who are not sure of their eligibility for the sales tax refund can contact the Colorado Department of Revenue to inquire about their eligibility.
Ways in Revenue Coming Back to You
The Audit Office of the State of Colorado has said they will give the money back to the taxpayers in three ways to eligible Colorado residents in the following three ways:
- The office grants the temporary income tax reduction where the tax rate is changed to 4.25% from 4.45% in 2025, and the refund will be processed.
- The state government will process the refund outside the income tax system through property tax exemptions to veterans with disabilities, older adults, and Gold Star spouses.
- The government has set a six-tier mechanism based on the adjusted gross income of the person in the fiscal year. The office will distribute the refunds through this mechanism when the refund amount is higher than $15 per person.
Refund Amount
According to the TABOR refund, the refund amount may vary for taxpayers depending on their adjusted gross income reported on the state tax return. So, the taxpayers can check their sales tax refund amount through the following six-tier mechanism:
| AGI Ranges | Single Filers | Married and Joint Filers |
| Up to $53,000 | $177 | $354 |
| $53,001 to $105,000 | $240 | $480 |
| $105,001 to $166,000 | $277 | $554 |
| $166,001 to $233,000 | $323 | $646 |
| $223,001 to $302,000 | $350 | $700 |
| $302,001 and above | $565 | $1130 |
Coloradans must know the above refund amount reflects the $1.4 billion excess revenue, as well as the additional $289 million previously underfunded amount.
How to claim?
The Colorado residents who qualify for the TABOR refund need to file their state tax return or PTC application to claim the sales tax refund. According to the Colorado guidelines, residents with no income tax liability and no claim on withheld taxes must file the tax return before 15 April 2025 to receive this tax refund.
However, Colorado residents with state income tax liability or who claimed the refund for the withheld taxes can file the tax returns before 15 October 2025. The individuals qualifying for the Colorado state sales tax refund should file the claim by the following:
- You can claim the credit through the Colorado Income Tax Return (DR 0104) online filing service at the website mentioned above. You should set up the LoginID and password to view your income tax account later in Revenue Online after filing the tax returns.
- Or you can file the PTC rebate application through DR 0104PTC.
The Colorado sales tax refund under the TABOR Act supports the taxpayers, so if you qualify for the refund, do file the state tax return on time before 15 April 2025/15 October 2025 and get your share of the state revenue.