Proposition 136: Income Tax Rate Limit
On every Colorado ballot · November 3, 2026
The question on your ballot
Shall there be a change to the Colorado Revised Statutes capping the state income tax rate at 4.4% of federal taxable income for individuals and corporations?
In plain language
A VoterDecoder summary of the official measure text.
Proposition 136 would limit the state income tax rate for individuals and corporations to 4.4 percent of taxable income, starting January 1, 2027. It does not change the current 4.4 percent rate, and the legislature or a citizen initiative could still lower the rate. A YES vote establishes 4.4 percent as the maximum rate in state law, while a NO vote keeps the current rate without creating a new limit. If both this measure and Amendment 87 pass, the outcome for incomes over $500,000 is unclear.
Fiscal impact
The measure caps the state income tax rate at no higher than the current 4.4 percent. The official fiscal statement finds that it results in no change to state or local government revenue or spending. For this reason, the measure has no fiscal impact.
Official explanation
What does Proposition 136 do?
The measure limits the state income tax rate for individuals and corporations to the current rate of 4.4 percent of taxable income beginning on January 1, 2027.
Does Proposition 136 change the current income tax rate?
No, the measure does not alter the current 4.4 percent state income tax rate. It creates a state law setting this rate as the maximum beginning on January 1, 2027.
Does Proposition 136 prevent any future changes to the state income tax rate?
No, Proposition 136 will not change the process for adjusting Colorado’s income tax rate. The state legislature or a citizen initiative may reduce the state income tax rate. The Colorado Constitution already requires that any tax rate increases be approved by voters.
What happens if Proposition 136 and Amendment 87 both pass?
Amendment 87 creates a graduated income tax, where higher tax rates are applied to higher incomes and lower tax rates are applied to lower incomes earned by a household or business. If both Amendment 87 and Proposition 136 are approved by voters, the proposed rate for incomes over $500,000 in Amendment 87 would be higher than the 4.4 percent limit in Proposition 136. Generally, when parts of voter-approved measures conflict, the policy outcome is determined by the measure that receives more votes. However, if both measures are approved by voters, the exact outcome is unclear. The state legislature or a court will determine how to resolve any conflicts.
FINANCIAL IMPACT STATEMENT
The measure limits the state income tax rate to no higher than the current rate of 4.4 percent. This results in no change to state or local government revenue or spending. For this reason, the measure has no fiscal impact.
Official ballot arguments
Filed for the official voter guide by each side, printed as submitted.
Argument in favor
1) Proposition 136 reinforces voter support for maintaining the current state income tax rate. The current rate, overwhelmingly approved by voters in 2022, is fair and keeps Colorado’s tax rate among the lowest in the country.
Argument against
1) This initiative is designed to put Amendment 87 into legal jeopardy, causing confusion and a potentially costly legal battle to resolve. After the 2026 election, Proposition 136 has no effect, since raising tax rates already requires voter approval and any future approval would override this measure.
What supporters and opponents say — outside sources (not official ballot arguments)
Statements by campaigns, officials and news coverage, quoted with attribution and linked to the original. VoterDecoder did not write them and does not endorse either side.
Supporters say
No public statements in favor were found.
Opponents say
No public statements against were found.