With the economy still uncertain and no new federal stimulus check announced for April 2025, many Americans are looking for other sources of financial support.
In Colorado, there’s a bit of good news: the TABOR refund may provide extra cash for residents in 2025. While it’s not a federal payment, this state-level refund could mean up to $1,600 for joint filers—a much-needed relief for many families.
What Is the TABOR Refund?
TABOR stands for Taxpayer’s Bill of Rights. It’s a law in Colorado that allows the state to return extra money to taxpayers when there’s a budget surplus. In other words, if the state collects more money than it planned to spend, the extra funds are shared back with the public.
For the 2024 fiscal year, Colorado is expected to return nearly $1.4 billion in surplus funds. That means many Colorado residents could receive a TABOR refund in the spring of 2025.
This refund isn’t connected to the federal government—it’s Colorado’s way of supporting its citizens using state resources.
How Much Can You Receive?
The amount of the TABOR refund depends on several things, including your income and whether you file taxes as an individual or jointly with a partner.
- Up to $1,600 for couples filing jointly
- A lower amount for individual filers
The final refund amount will be calculated by the Colorado Department of Revenue, depending on your adjusted gross income and other eligibility factors.
Who Is Eligible for the TABOR Refund in 2025?
To receive the TABOR refund, you must meet all of these requirements:
1. Lived in Colorado for at least half of 2024
You need to be a full-time or part-time resident of Colorado for at least six months in 2024.
2. Be 18 years old or older as of January 1, 2025
You must be an adult at the start of 2025 to qualify for the payment.
3. File a 2024 Colorado state income tax return or apply for a personal tax credit
This means you should file your tax return by April 15, 2025, or submit a PTC (Property/Rent/Heat Tax Rebate) application if you’re not required to file taxes but still want to claim the refund.
How to Apply for the TABOR Refund
To get the refund, you’ll need to:
- Visit the official website of the Colorado Department of Revenue
- Fill out the required form online (tax return or PTC application)
- Upload documents if needed (proof of residency, income details, etc.)
- Submit your application before the deadline
You must make sure all the information you submit is accurate to avoid any delays or issues with your refund.
Extra Benefits Under TABOR in 2025
Colorado residents may benefit in two main ways:
1. Income Tax Reduction
For the 2024 tax year, the state tax rate will be temporarily lowered from 4.40% to 4.25%, giving you more take-home pay or a bigger tax refund.
2. Sales Tax Rebate
Those who lived in Colorado throughout 2024 and file a return or PTC application by October 15, 2025, can receive a separate sales tax rebate.
Together, these benefits can offer real financial help for residents during a time when every bit counts.