If you’re wondering what happened to your Colorado TABOR refund, you’re not alone. The amounts dropped sharply this year, and the way you claim them changed. According to the Colorado Department of Revenue, TABOR refunds are now based on your income and are claimed when you file your Colorado state income tax return, not issued as a separate check.
For the 2025 tax year, refund amounts vary by adjusted gross income (AGI) with payments ranging from $19 to $118. Because the refund is included with your state tax filing, it’s important to know how it works so you don’t miss it. If you need help preparing or filing your Colorado state income tax return, our tax professionals at Boxelder Consulting can help.
Colorado TABOR FAQ
What is Colorado TABOR Law?
The Colorado Taxpayer Bill of Rights (TABOR) is an amendment to the Colorado State Constitution passed in 1992. TABOR limits the amount of revenue that the Colorado State government can spend and retain.
The TABOR amendment has played a major role in shaping the tax system in Colorado. It dictates that state and local governments cannot raise taxes without voter approval. And, if state revenues grow faster than the rates of inflation and population growth, the government must refund the excess revenue back to the taxpayers.
In effect, TABOR creates a revenue limit for the State of Colorado. Any amount of money collected over the limit is called the “TABOR Surplus,” and is sent back to citizens at the end of the fiscal year.
How Are TABOR Revenue Payments Taxed?
TABOR payments are not taxable. In fact, they are technically a refund of 2025 state tax revenue and belong in the same category as the refund you would get as a W-2 employee.
How Are TABOR Colorado Refunds Calculated?
For the 2025 tax year, TABOR refund amounts are based on adjusted gross income (AGI), with the lowest income earners receiving refunds of around $19, and the highest income earners receiving about $118. Unlike previous years, these refunds are claimed on your Colorado state income tax return rather than issued as a separate check.
What Are the 2025 TABOR Refund Amounts?
The table below shows the official 2025 TABOR Colorado refund amounts by income:
When Will I Receive My TABOR Refund?
You’ll receive your TABOR refund with your Colorado state income tax refund after you file your return. There is no separate check or payment however, the refund is included in your state tax filing.
The timeline of your refund depends on how you file. E-file returns typically process faster (within a few weeks) while paper returns may take longer to process.
Will There Be a TABOR Refund Next Year?
Probably not, and it is worth understanding why.
TABOR only pays out when the state collects more revenue than its constitutional cap allows. In recent years that surplus has shrunk sharply. Refunds for the 2023 tax year were a flat $800 per filer. For 2024 they ranged from $177 to $565 for single filers. For 2025 they range from $19 to $59. Current state forecasts project no general TABOR refund for the 2026 tax year at any income level.
The reason is not that Colorado changed its mind about TABOR. Federal tax changes reduced the state’s revenue, because Colorado’s tax code follows the federal code closely. Lawmakers were called back into a special session to address the resulting budget shortfall. Governor Polis’s budget amendment request projected no TABOR refunds in 2027, though the same request anticipated General Fund revenue growth in fiscal year 2026-27 that could produce a surplus again later.
Two new credits also absorb money that used to flow into general TABOR refunds. Colorado expanded its Earned Income Tax Credit and created a Family Affordability Tax Credit, both paid out to filers. For many lower and middle income households, those credits are worth substantially more than a TABOR refund ever was.
What this means for you: treat TABOR as a bonus, not as budgeted income. If you were counting on a refund next spring, plan without it. And if you qualify for the expanded EITC or the Family Affordability Tax Credit, those are worth far more attention than the TABOR line on your return. If you are not sure which credits you qualify for, that is exactly the kind of thing worth a conversation before you file.
How Boxelder Can Help With Your Colorado Taxes
At Boxelder Consulting, our team works with Colorado taxpayers to ensure their returns are filed accurately and on time. Whether you’re filing as an individual or have any other tax needs, we can help you from start to finish.
If you have any other questions about TABOR, Colorado tax rates, or need state or federal tax filing, give us a call at (303) 317-6111 for a free consultation. Boxelder Consulting is a full service tax, accounting, bookkeeping, and tax relief firm, and we were recently named the Best Accounting Team in Denver by Legal Directorate. We would be happy to answer any questions you may have!
