Colorado residents who paid state income tax in the prior year receive a TABOR refund when the state collects more revenue than the Taxpayer Bill of Rights spending limit allows.

The refund goes to anyone who filed a Colorado tax return and owed state income tax for that year. You do not need to take any action — the state processes refunds automatically based on your tax filing. The amount you receive depends on how much income tax you paid and the total surplus the state collected, which varies year to year.

TABOR (Taxpayer Bill of Rights) is a constitutional amendment that caps how much revenue Colorado can keep. When collections exceed that cap, the law requires the state to return the surplus to taxpayers. The refund is not based on need or income level — it is a mechanical return of overpaid taxes.

Key Takeaways

  • You receive a TABOR refund if you filed a Colorado income tax return and paid state income tax in the prior tax year.
  • The state calculates your refund share based on the income tax you paid as a percentage of total state income tax collected.
  • Refunds are issued automatically; you do not need to request one or provide additional paperwork.
  • The refund amount and timing depend on when the state certifies the surplus and processes payments, which typically occurs in the fall or winter following the tax year.

How the state determines your refund amount

Colorado divides the total surplus by the total income tax collected statewide, then multiplies that percentage by the income tax you paid. If the state collected $500 million more than the TABOR cap allows and total income tax was $10 billion, the refund rate is 5 percent. If you paid $5,000 in Colorado income tax, your refund would be $250.

The state uses your tax return from the prior year to calculate your share. If you filed jointly, both spouses receive the refund on a single check or deposit. If you filed as head of household or single, you receive your individual share. Non-residents who paid Colorado income tax on Colorado-source income also receive a refund proportional to what they paid.

The refund rate changes every year because it depends on how much surplus the state collected and how much total income tax was paid. In some years the surplus is small and the refund rate is less than 1 percent. In other years it can be 3 to 5 percent or higher. The state announces the refund rate after the fiscal year ends and the revenue is certified.

When you will receive your refund

The state typically issues TABOR refunds in the fall or winter following the tax year. For example, refunds for tax year 2023 were issued starting in October 2024. The exact timing depends on when the state legislature certifies the surplus and when the Department of Revenue processes the payments.

If you are due a refund and filed a return with direct deposit information, the state deposits the money into your bank account. If you filed by mail or did not provide banking details, the state mails a check. Direct deposit is faster — deposits usually arrive within one to two weeks of the processing date, while checks take two to three weeks.

You can track the status of your refund on the Colorado Department of Revenue website. The site posts updates when refunds are being processed and allows you to check whether your refund has been issued. If you filed jointly, only one name appears on the check or deposit, but both spouses' refunds are included in the single payment.

Who does not receive a TABOR refund

You do not receive a refund if you did not file a Colorado income tax return for that year. This includes people who had no Colorado income, non-residents with no Colorado-source income, and people whose income was below the filing threshold. The state has no way to identify you as a taxpayer if you did not file.

People who are not required to file Colorado income tax — such as those whose income came entirely from Social Security or other non-taxable sources — do not receive a refund. Similarly, if you lived outside Colorado for the entire year and had no Colorado income, you would not have filed a return and would not receive a refund.

Non-citizens and undocumented immigrants who filed Colorado tax returns using an Individual Taxpayer Identification Number (ITIN) do receive TABOR refunds. The refund is based on taxes paid, not immigration status.

What happens if you moved or changed your address

If you moved after filing your tax return, the state may mail your check to your old address. You can update your address with the Colorado Department of Revenue before the refund is issued. Check the department's website for the current deadline — it is usually a few weeks before refunds begin processing.

If your check was mailed to an old address and you did not receive it, contact the Department of Revenue with your name, Social Security number, and the tax year in question. The state can issue a replacement check or deposit the refund to a current bank account if you provide that information.

If you filed a joint return and you and your spouse have since divorced or separated, both of you are may have access to to your respective shares of the refund. You may need to contact the Department of Revenue to split the refund or have it sent to separate addresses.

TABOR refunds and your federal taxes

A Colorado TABOR refund is not taxable income on your federal return. The IRS treats it as a return of taxes you overpaid to Colorado, not as new income. You do not report it on your federal Form 1040 or any other federal form.

Some tax software may ask whether you received a state refund. Answer yes if you received a TABOR refund, but do not enter it as income. The software should handle it correctly, but if you are unsure, check the instructions or contact a tax preparer.

What to do if you did not receive your refund

If you filed a Colorado return for the year in question and did not receive your refund within a few weeks of the announced processing date, contact the Colorado Department of Revenue. Have your Social Security number, filing status, and the tax year ready.

The department can tell you whether your refund was issued, when it was sent, and where it was sent. If the check was lost in the mail, the state can issue a replacement. If the refund was deposited to an old bank account, you may be able to retrieve it from that bank or request a new deposit to a current account.

If you believe you should have received a refund but the state has no record of your return, you may need to file a return for that year. Contact the Department of Revenue to confirm whether a return was received and processed.

Frequently Asked Questions

Do I have to do anything to get my TABOR refund?

No. The state processes refunds automatically based on your tax return. You do not need to request one, sign up, or provide additional information. If you filed a return and paid Colorado income tax, your refund will be issued without any action on your part.

Can I get my TABOR refund faster by using direct deposit?

Yes. If you filed your return with direct deposit banking information, your refund is deposited into your account within one to two weeks of processing. Mailed checks take two to three weeks. You can update your address or banking information with the Colorado Department of Revenue before refunds are issued.

What if I did not file a Colorado tax return because I did not think I owed taxes?

If you had Colorado income but did not file, you would not receive a TABOR refund for that year. You cannot file a return retroactively to claim a refund that has already been issued. Contact the Department of Revenue to discuss your situation.

Is the TABOR refund the same as a tax refund from my return?

No. A TABOR refund is a separate payment from the state when it collects more revenue than allowed by law. A tax refund is money you overpaid on your individual return. You may receive both in the same year, but they are calculated and issued separately.

Do I report the TABOR refund on my federal taxes?

No. The TABOR refund is not taxable income on your federal return. It is treated as a return of state taxes you paid, not as new income. Do not report it on your federal Form 1040.