Colorado voters approve Amendment 87, imposing higher income taxes on top earners

Colorado voters narrowly approved Amendment 87 in the Nov. 5 election, with the Associated Press calling the race Friday morning after more than 51% of votes favored the measure. The constitutional amendment removes the state’s flat-tax requirement and establishes a tiered income tax system that raises rates on top earners, projected to generate $2 billion in additional revenue by 2027-28. The measure will raise the state’s corporate and individual income tax rate to 7.4% on income above $500,000, with the rate gradually increasing to 8.4% on income above $1 million, according to the measure’s text. The higher rates apply to the top 3% of earners, while taxpayers earning less than $500,000 annually will see a reduction in their income tax rate, according to a fiscal analysis by nonpartisan state legislative staff. That analysis projected the measure would generate $2 billion in additional revenue for the state by the 2027-28 fiscal year.

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