In April 2025, thousands of Colorado residents will receive a direct deposit as part of the Taxpayer Benefits Act (TABOR). This refund, ranging from $177 to $1,130, will be based on income reported in 2024.
For many Coloradans, this cash boost will be a welcome change, but it’s essential to understand how this new system works and the implications for the future.
How the TABOR Tax Refund Program Works
Colorado’s TABOR (Taxpayer’s Bill of Rights) has been in place since 1992, requiring the state to return surplus tax revenues to residents. However, 2025 marks a significant shift. For the first time in three decades, the refunds will no longer be uniform. Instead, they will be tiered, with the amount a person receives depending on their income.
Historically, refunds were equal for all, but the 2025 program introduces a progressive system where higher-income residents will receive up to three times more than those with lower incomes.
While this change is designed to be fairer, it also reflects a shift in how the state plans to handle surpluses, as future refunds may drop drastically starting in 2026. Lawmakers have warned that the TABOR refunds could decline by up to 88% due to proposed changes.
Refund Amounts Based on Income
The new tiered system divides refunds into brackets based on income levels. Here are the refund amounts for individual and joint filers:
Individual Filers:
- $53,000 or less: $177
- $53,001 – $105,000: $240
- $105,001 – $166,000: $277
- $166,001 – $233,000: $323
- $233,001 – $302,000: $350
- $302,001 or more: $565
Joint Filers:
- $53,000 or less: $354
- $53,001 – $105,000: $480
- $105,001 – $166,000: $554
- $166,001 – $233,000: $646
- $233,001 – $302,000: $700
- $302,001 or more: $1,130
As this new system shows, those with higher incomes will receive significantly larger refunds. For example, a single filer making $305,000 will receive a $565 refund, which is three times the $177 refund of someone earning $52,000.
Important Dates for the TABOR Tax Refund
When can you expect your TABOR tax refund? The payment schedule depends on when you file your state tax return:
- If you file before April 15, 2025: You’ll receive your refund in mid- to late April.
- If you file between April 15 and October 15, 2025 (with an extension): Your refund will be issued within 60 days of your return’s processing.
For all eligible residents, the refund is automatic once the tax return or Property Tax/Rent/Heat Rebate (PTC) application is processed.
Requirements for Receiving the TABOR Refund
To be eligible for the TABOR refund, you must meet these requirements:
- Residency: You must have lived in Colorado for the entire year of 2024.
- Age: You must be at least 18 years old by January 1, 2025.
- Tax Filing: You must file a 2024 state tax return or submit a PTC application by October 15, 2025.
If you meet these requirements and file your taxes, no additional action is needed. The refund will be sent automatically.
Why You Should File Early
The amount of your refund will depend on your income, and filing your state tax return as soon as possible will ensure you get your payment sooner. Those who file before the April 15 deadline can expect to receive their refund in mid-to-late April, while those who file later may have to wait longer.