Colorado's TABOR refund is money the state returns to taxpayers when tax revenue exceeds the spending limit set by the Taxpayer Bill of Rights

TABOR (Taxpayer Bill of Rights) is a constitutional amendment that caps how much Colorado can spend each year. When the state collects more tax money than the cap allows, that excess must go back to residents. For 2025, Colorado is returning a refund because 2024 tax collections exceeded the limit. The refund appears as a credit on your 2024 tax return, filed in 2025, or as a direct payment if you don't file a return.

The refund amount varies by filing status and income level. Colorado calculates it based on your tax liability for the year the excess occurred — not a flat amount per person. You don't need to do anything to receive it; the state processes it automatically when you file your return or sends it to you if you're not required to file.

Key Takeaways

  • TABOR refunds happen when Colorado tax revenue exceeds the constitutional spending cap, which occurred for the 2024 tax year.
  • The refund amount depends on your 2024 tax liability and filing status, not on how much you earned or paid in taxes.
  • If you file a 2024 tax return, the refund appears as a credit that reduces what you owe or increases your refund; if you don't file, the state mails it to you.
  • You cannot claim the TABOR refund on a prior-year return — it only applies to the tax year in which the excess occurred.
  • The refund is not taxable income and does not affect your federal tax return.

How the TABOR refund amount is calculated

Colorado divides the total excess revenue by the number of tax returns filed statewide, then multiplies that figure by your share of the state's tax liability. In simpler terms: the state figures out how much each dollar of tax you paid represents, then gives you back your proportional share of the excess.

Your refund is based on your 2024 Colorado tax liability — the amount of state income tax you owed after deductions and credits. If you owed $2,000 in Colorado income tax and that represented 0.001% of all taxes collected, you receive 0.001% of the total excess. A person who owed $500 receives a smaller refund; a person who owed $5,000 receives a larger one.

The state does not announce a per-person dollar amount in advance because the total excess and the number of filers both affect the calculation. Colorado's Department of Revenue publishes the final refund amount once all 2024 returns are processed, usually in late spring or early summer.

When and how you receive the TABOR refund

If you file a 2024 Colorado tax return, the refund appears as a line item credit on that return. It reduces the amount you owe or increases the refund you receive. You see it when you file — either through a tax software package, a tax preparer, or the Colorado Department of Revenue's online filing system.

If you don't file a 2024 return because your income was below the filing threshold, Colorado mails the refund to you automatically. The state uses your address on file from previous years or from other state records. These mailed refunds typically arrive in the summer months following the tax year.

If you file electronically and request direct deposit, your refund (including the TABOR credit) deposits into your bank account within 10 to 21 days of acceptance. If you file by mail or request a check, allow 4 to 6 weeks for processing and delivery.

TABOR refunds and your federal taxes

The TABOR refund is not taxable income on your federal return. You do not report it to the IRS, and it does not increase your federal adjusted gross income. Colorado treats it as a reduction in state tax liability, not as income received.

If you received a TABOR refund in a prior year and reported it on your federal return by mistake, you can file an amended federal return (Form 1040-X) to remove it. However, most people who receive TABOR refunds correctly do not report them federally, and the IRS does not expect to see them.

What happens if you moved out of Colorado

If you lived in Colorado for part of 2024 and moved out before filing your 2024 return, you still receive a TABOR refund based on the income you earned while a resident. You file a part-year Colorado return and claim the refund on that return.

If you moved out of Colorado and did not file a 2024 return, the state needs a current address to mail the refund. You can contact the Colorado Department of Revenue to update your address or claim an unclaimed refund. Unclaimed TABOR refunds do not expire, but the longer you wait, the harder it becomes to locate your records.

TABOR refunds for non-filers and dependents

If you were claimed as a dependent on someone else's 2024 return, you do not receive a separate TABOR refund. The refund is based on the tax liability of the person who filed the return claiming you. If you had income and were required to file your own return, you file separately and receive your own refund based on your tax liability.

Non-filers — people with income below the filing threshold — receive a mailed refund from the state. Colorado identifies these individuals using prior-year tax records and W-2 information reported by employers. If the state cannot locate you or your address is outdated, the refund remains unclaimed until you contact the Department of Revenue.

Tracking your TABOR refund status

If you filed a 2024 return, check the status through the Colorado Department of Revenue's online refund tracker at tax.colorado.gov. Enter your Social Security number and the amount you expect to receive. The tracker updates as your return is processed and shows when the refund is issued.

If you're expecting a mailed refund as a non-filer, contact the Department of Revenue directly at 303-238-7378 to confirm your address and check whether a refund was mailed. Have your Social Security number and prior-year tax information available.

If you filed through a tax preparer or software, ask them to check the status on your behalf. They can access the same Department of Revenue systems and often receive updates faster than individual filers.

What to do if you don't receive your TABOR refund

If you filed a return and the refund does not appear within the expected timeframe, log into the Department of Revenue's refund tracker to see if there's a processing delay or error. Common reasons for delays include incomplete information on your return, a mismatch between your name and Social Security number, or a hold placed by another state agency (such as child support enforcement).

If you were supposed to receive a mailed refund and it doesn't arrive within three months of the expected date, contact the Department of Revenue. Provide your Social Security number, the tax year, and your current address. The state can reissue the refund by check or direct deposit if you provide banking information.

If your refund was applied to pay back taxes, child support, or other debts owed to Colorado, the Department of Revenue will notify you in writing. You can dispute the offset if you believe it was made in error, but you must file a written protest within 30 days of the notice.

Frequently Asked Questions

Can I claim a TABOR refund from a year I didn't file a return?

No. TABOR refunds are based on the tax year in which the excess occurred. If Colorado had an excess in 2024, you receive a refund only if you had Colorado tax liability in 2024. You cannot go back and claim refunds from prior years, even if you didn't file then.

Does the TABOR refund reduce my federal tax refund?

No. The TABOR refund is a Colorado state matter and does not affect your federal return. If you file both a Colorado and federal return, they are separate calculations. Your federal refund is based only on federal withholding and federal tax liability.

What if I owe Colorado taxes — do I still get the TABOR refund?

If you owe back taxes to Colorado, the state may apply your TABOR refund to that debt before sending you anything. You receive written notice if this happens. If you dispute the offset, you have 30 days to file a written protest with the Department of Revenue.

How do I know if I'm a Colorado resident for TABOR purposes?

You're a Colorado resident if you lived in the state for more than half of 2024 or established Colorado as your permanent home. If you moved to Colorado partway through 2024, you file a part-year return and still receive a TABOR refund based on your Colorado income and tax liability for that period.

Can I use the TABOR refund to pay my 2025 Colorado taxes early?

No. The TABOR refund is applied to your 2024 return only. It reduces what you owe for 2024 or increases your 2024 refund. You cannot apply it to future tax years. If you want to prepay 2025 taxes, you must make a separate estimated tax payment to the Colorado Department of Revenue.