Proposition 136 would cap Colorado's income tax rate at 4.4 percent
Oct 20, 2026 · 7 min · 6 segments
- Speakers
Kim MonsonHost
Oct 20, 2026 · 7 min · 6 segments
Kim MonsonHost
The Citizen Initiative from Advance Colorado would make the state's current 4.4% income tax rate the legal maximum for individuals and corporations starting January 1st, 2027.
Kim Monson and Rob Natelson of the Independence Institute backed it on the Kim Monson Show.
Proposition 136, a citizen initiative on Colorado's November 3rd ballot, would cap the state's individual and corporate income tax rates at 4.4% of federal taxable income beginning January 1st, 2027.
The measure would write the rate Colorado charges now into state statute as the maximum and needs a majority vote to pass, according to the 2026 Blue Book, the state's ballot information booklet.
It shares the ballot with Amendment 87, which would replace the flat rate with graduated rates.
Kim Monson said on The Kim Monson Show on October 20 that her 2026 Colorado Voter's Guide recommends a yes vote on Proposition 136 and a no vote on Amendment 87.
I agree completely, said Rob Natelson, who heads the Independence Institute's Constitutional Studies Center.
Since Montana and other states had bad experiences with progressive income taxes, he said most states, not all, but most states have been moving down toward either no income tax at all or income taxes in the rate level of 2%, 3%, 4%.
And so even the 4.4%, in my view, is too high, he said, but at least that 136 is a way of at least preventing it from going above that, and hopefully the voters can later on reduce it further.
They filed it February 20th, and the state title board set its ballot title March 4th and ruled on a rehearing April 1st.
The measure adds one section to state law, CRS 39-22-102.5. titled Maximum Tax Rate, which bars either rate from exceeding 4.4% of a taxpayer's federal taxable income starting January 1, 2027.
The Blue Book says Proposition 136 will not change the process for adjusting Colorado's income tax rate since the legislature or a citizen initiative may still reduce it and the Colorado Constitution already requires that any tax rate increases be approved by voters.
That voter approval requirement is part of the taxpayer's Bill of Rights, or TABOR.
Because the cap matches the current rate, the Blue Book projects no change to state or local government revenue or spending and says the measure has no fiscal impact.
Amendment 87 would set six brackets from 3.7% to 8.4% for tax years beginning in 2027, and its rates on income over $500,000 would be higher than the Proposition 136 limit.
Generally, when parts of voter-approved measures conflict, the policy outcome is determined by the measure that receives more votes.
However, if both measures are approved by voters, the exact outcome is unclear, the Blue Book says, adding that the legislature or a court will resolve any conflicts.
The Citizen Initiative from Advance Colorado would make the state's current 4.4% income tax rate the legal maximum for individuals and corporations starting January 1st, 2027.
Kim Monson and Rob Natelson of the Independence Institute backed it on the Kim Monson Show.
Proposition 136, a citizen initiative on Colorado's November 3rd ballot, would cap the state's individual and corporate income tax rates at 4.4% of federal taxable income beginning January 1st, 2027.
The measure would write the rate Colorado charges now into state statute as the maximum and needs a majority vote to pass, according to the 2026 Blue Book, the state's ballot information booklet.
It shares the ballot with Amendment 87, which would replace the flat rate with graduated rates.
Kim Monson said on The Kim Monson Show on October 20 that her 2026 Colorado Voter's Guide recommends a yes vote on Proposition 136 and a no vote on Amendment 87.
I agree completely, said Rob Natelson, who heads the Independence Institute's Constitutional Studies Center.
Since Montana and other states had bad experiences with progressive income taxes, he said most states, not all, but most states have been moving down toward either no income tax at all or income taxes in the rate level of 2%, 3%, 4%.
And so even the 4.4%, in my view, is too high, he said, but at least that 136 is a way of at least preventing it from going above that, and hopefully the voters can later on reduce it further.
They filed it February 20th, and the state title board set its ballot title March 4th and ruled on a rehearing April 1st.
The measure adds one section to state law, CRS 39-22-102.5. titled Maximum Tax Rate, which bars either rate from exceeding 4.4% of a taxpayer's federal taxable income starting January 1, 2027.
The Blue Book says Proposition 136 will not change the process for adjusting Colorado's income tax rate since the legislature or a citizen initiative may still reduce it and the Colorado Constitution already requires that any tax rate increases be approved by voters.
That voter approval requirement is part of the taxpayer's Bill of Rights, or TABOR.
Because the cap matches the current rate, the Blue Book projects no change to state or local government revenue or spending and says the measure has no fiscal impact.
Amendment 87 would set six brackets from 3.7% to 8.4% for tax years beginning in 2027, and its rates on income over $500,000 would be higher than the Proposition 136 limit.
Generally, when parts of voter-approved measures conflict, the policy outcome is determined by the measure that receives more votes.
However, if both measures are approved by voters, the exact outcome is unclear, the Blue Book says, adding that the legislature or a court will resolve any conflicts.
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