We are a Naperville, Illinois CPA firm, and we serve Denver-area clients remotely; we have no office in Colorado. One clarification first: Aurora, Colorado is not Aurora, Illinois, the city next to our home office in Naperville. This page is about Colorado's Aurora, which sits beside Denver; our Aurora, Illinois page covers the other one. In the Denver area, the most useful details are local: a per-employee tax in Denver, a city that has dropped its own version, and property tax protest rules that vary by county.
Denver's head tax and sales tax license
Denver imposes two related occupational privilege taxes, often called the head tax. The employee tax is $5.75 a month, withheld by the employer, for anyone who performs enough services in Denver to earn at least $500 in a month. The business tax is $4.00 a month per taxable employee, and also applies to every owner, partner or manager working in Denver regardless of earnings. Anyone with activity in Denver owes at least $4.00 a month, even without a permanent location there. If you have two Denver employers, you pay the employee tax once by giving the second employer Form TD269; the employer still owes its $4.00.
Aurora used to impose a similar $2 monthly tax on employees and employers, but the city repealed it effective January 1, 2025. Denver's own tax guide still mentions Aurora's head tax in an example, so check the date on older material.
Denver also collects its own sales and use tax. The Treasury's FAQ page shows a combined general rate of 9.15 percent (Denver 5.15, state 2.90, regional transit 1.00 and a special district 0.10) and 8.00 percent for prepared food and drink. Taxable services in Denver include software as a service and telecommunications. Retailers get a Retailer's Sales, Use, Lodgers Tax License with no license fee, issued for two years at the end of each odd-numbered year. A seller located outside Denver must be licensed if it is engaged in business in the city or has economic nexus there. Our sales tax service and the local payroll taxes guide cover the setup.
Property protests: one state deadline, several county calendars
Colorado reappraises real property in odd-numbered years. The Denver Assessor says the deadline to protest is June 8 each year (or the next business day), and that you can then appeal a Board decision to the State Board of Assessment Appeals, district court or binding arbitration. Senate Bill 26-046, signed March 26, 2026, changes the real property protest deadline from June 8 to June 1; the sections that make that change take effect January 1, 2027, so check the deadline printed on your own notice.
Counties add their own steps:
- Arapahoe County. The 2026 appeal window was May 1 to June 8, the Assessor had to answer by June 30, and the value being tested was as of June 30, 2024. Sales after that date cannot be used as comparables.
- Adams County. A petition to the Board of Equalization is due by September 15. Hearings are held by telephone and cannot be rescheduled, and the Board can raise the value if it finds for the Assessor.
- Denver County. Protests can be filed in writing, in person or online, and the instructions arrive with the Notice of Valuation.
Because the City of Aurora lies across Adams, Arapahoe and Douglas counties, Aurora property owners follow the calendar of whichever county holds their parcel.
Colorado income tax, extensions and the TABOR refund
Colorado's rate and retirement rules are on our Colorado page. Three practical points stand out for Denver filers. First, the state grants an automatic extension to file until October 15, but there is no extension to pay, so a payment due April 15 still applies. Second, the Department of Revenue's 2025 instructions say the TABOR State Sales Tax Refund is for full-year residents who are generally 18 or older on January 1, 2025, and the return had to be postmarked by October 15, 2026. That date has now passed. Third, the refund is based on federal adjusted gross income plus nontaxable Social Security, and the Department says you must answer a specific question on your return to elect it.
Anyone who has not filed a 2025 Colorado return should ask the Department of Revenue what remains possible. Part-year residents and nonresidents file the DR 0104 instead.
Tax measures pending on the November 3, 2026 ballot
The Legislative Council's 2026 Blue Book lists several tax questions, and none is decided until votes are counted. Amendment 87 would replace the flat income tax with a graduated one starting in 2027, lowering tax on taxable income below $500,000, raising it above that, and increasing state taxes by $2.7 billion a year. Proposition 136 would cap the rate at 4.4% in statute. Proposition NN would let the state keep and spend revenue it would otherwise refund under TABOR, up to a new limit, with the first ten years going to K-12 education and programs that support children, and Proposition 137 would direct sporting goods sales tax revenue to conservation. Ballot Issue 7A would add a 0.333% sales and use tax inside the Front Range Passenger Rail District, whose election notice lists Denver, Centennial, Greenwood Village and Littleton but not Aurora; check your own ballot.
The Indian-American community and US-India tax in Denver
The Denver-Aurora-Centennial metro area has about 31,300 residents who identify as Asian Indian alone or in combination (about 1.0%). Arapahoe County has about 9,400 (1.4%), Adams County about 2,500 (0.5%) and the city of Denver about 4,600 (0.6%). Colorado's Aurora has about 3,500 (0.9%), and the town of Parker has about 2,700 (4.4%). These figures come from the American Community Survey 2020 to 2024 5-year, Table B02018.
The Consulate General of India in San Francisco lists Colorado in its 2025 jurisdiction table, along with Northern California, Utah, Hawaii and Wyoming, and its website lists passport, visa, OCI, attestation and renunciation services.
Issues that come up for Denver families include:
- Reporting Indian assets. Form 8938 can apply on top of FBAR.
- Investing back in the U.S. Real estate bought by NRIs has its own rules.
- Owning a business in India. See Indian business ownership forms.
- Funds. Indian mutual funds are often PFICs.
How we can help
From Naperville, we prepare federal and Colorado returns, set up payroll with Denver head tax withholding, keep books, review notices and handle US-India tax. You send documents electronically and we talk by phone or video. If a matter requires a license in Colorado or a local professional, we will say so. This page is general information.
Frequently asked questions
Does Denver tax my paycheck?
Denver's occupational privilege tax is a flat $5.75 a month, not a percentage of pay. It is withheld from an employee who earns at least $500 in a month for work in Denver.
Does Aurora still charge an occupational privilege tax?
Not since January 1, 2025, according to the city. Denver's tax is separate and remains.
When can I protest my property value?
Denver's assessor deadline is June 8, and SB 26-046 changes it to June 1 beginning January 1, 2027. Check the deadline on your notice.
Is the extension to October 15 also an extension to pay?
No. Colorado's automatic extension is for filing only.
Which Indian consulate serves Colorado?
San Francisco, per the 2025 jurisdiction table.
Official sources
- City and County of Denver Treasury: Tax Guide Topic 61, occupational privilege taxes
- City and County of Denver Treasury: business tax FAQs
- City of Aurora, Colorado: occupational privilege tax
- Denver Assessor: frequently asked questions
- Colorado Department of Revenue: 2025 DR 0104EZ instructions (TABOR refund)
- Colorado Legislative Council: 2026 Blue Book
- U.S. Census Bureau: ACS 2020-2024 5-year, Table B02018 (Denver metro area, counties and cities)
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.