Colorado TABOR Refund Update: Who Qualifies This Year and How Much You Could Receive

Image Source: Shutterstock

Colorado has something special called the TABOR refund that is released each year. However, in the last several years, taxpayers have seen unusually large payouts. The 2026 cycle looks different, though. There will be smaller refunds and tighter expectations for future years moving forward. TABOR is tied directly to state revenue limits, and this year’s numbers reflect slower economic growth and reduced surpluses. All of that being said, here is what you need to know about the latest changes to the TABOR refund.

Understanding How the Colorado TABOR Refund Works

The Colorado TABOR refund is issued when state revenue exceeds the constitutional limit set by the Taxpayer’s Bill of Rights. Unlike the 2022 “Colorado Cashback” checks, this year’s refund is not issued as a separate payment.

Instead, the Colorado Department of Revenue confirms that the refund is built directly into your state income tax return, meaning you must file to receive it. The refund is structured as a sales tax refund, and the amount depends on your Adjusted Gross Income (AGI). This system ensures that the Colorado TABOR refund is distributed fairly across income tiers.

Who Qualifies for a Colorado TABOR Refund This Year

Eligibility for the Colorado TABOR refund is straightforward: if you file a Colorado state income tax return for the applicable tax year, you qualify. The Department of Revenue emphasizes that taxpayers must actively claim the refund on their return. Both full‑year and part‑year residents may qualify as long as they meet filing requirements.

The refund applies to individuals and joint filers, with amounts determined by income brackets. This means nearly all Colorado taxpayers who file will receive something, even if the amount is smaller than in previous years.

How Much You Could Receive Based on Your Income

For the 2025 tax year (refunds issued in 2026), Colorado uses a six‑tier income structure to determine refund amounts. Single filers will receive between $19 and $59, while joint filers will receive between $38 and $118, depending on AGI. These amounts are significantly smaller than the large refunds issued in earlier years, reflecting reduced state surpluses.

State economists also predict that no TABOR refunds are expected the following year, making this cycle especially important for taxpayers. If you’re planning your budget, these updated refund amounts offer a realistic expectation of what you’ll receive.

Why TABOR Refunds Are Smaller This Year

Colorado’s TABOR refunds are directly tied to state revenue performance, and this year’s numbers reflect a slowdown. According to Rocky Mountain PBS, the 2026 refunds will be “a lot smaller than in recent years,” with state economists projecting no refunds at all the year after. This shift follows several years of unusually high surpluses that produced larger checks for taxpayers.

As revenue growth stabilizes, the refund amounts return to their traditional, modest levels. Understanding this trend helps taxpayers set realistic expectations for future Colorado TABOR refund cycles.

How to Claim Your Colorado TABOR Refund Correctly

To receive your Colorado TABOR refund, you must file your state income tax return and complete the section related to the sales tax refund. The Department of Revenue stresses that the refund will be combined with your regular tax refund, not issued separately.

If you qualify for the Property Tax/Rent/Heat Rebate (PTC), your TABOR refund may also be included in that payment. Filing early ensures your refund is processed sooner, especially since Colorado opened the 2026 filing season earlier than usual. Taking a few minutes to verify your AGI and filing status can help ensure you receive the correct refund amount.

What This Year’s TABOR Refund Means for Colorado Taxpayers

This year’s Colorado TABOR refund may be smaller, but it still provides meaningful relief for residents across the state. The updated income tiers ensure that refunds remain equitable, even during years of lower revenue growth. With economists predicting no refunds next year, this cycle may be the last opportunity for taxpayers to benefit for a while.

Do you think Colorado should continue issuing TABOR refunds during years of lower revenue, or should the state redirect the funds elsewhere? Share your thoughts in the comments.