2026 Voter Guide: This article is part of Johnstown Republic’s guide to the Nov. 3 ballot.
Colorado voters will decide Amendment 87, which would replace the state’s current flat income tax with a graduated system beginning in 2027.
The measure would lower tax rates on lower levels of taxable income, keep the current 4.4% rate on income between $100,001 and $500,000, and apply higher rates to income above $500,000. Additional revenue would be directed to K-12 education, health care, and early childhood care and education.
Unlike most constitutional amendments, Amendment 87 requires only a simple majority to pass, according to the official 2026 Colorado Blue Book.
What would Amendment 87 do?
Colorado currently taxes individual and business income at a flat 4.4% rate. Amendment 87 would replace that system with six tax brackets beginning in tax year 2027.
The proposed rates would be:
- 3.7% on the first $25,000 of taxable income
- 4.2% on taxable income from $25,001 to $100,000
- 4.4% on taxable income from $100,001 to $500,000
- 7.4% on taxable income from $500,001 to $750,000
- 7.9% on taxable income from $750,001 to $1 million
- 8.4% on taxable income above $1 million
Each rate would apply only to the portion of income within that bracket, similar to the federal income-tax system. The brackets would not be adjusted for inflation.
For example, the Blue Book estimates that a taxpayer with $125,000 in taxable income would owe $5,175, compared with $5,500 under the current flat-tax system — a $325 reduction.
Taxpayers with Colorado taxable income below about $510,834 are projected to pay less overall, while those above that level are projected to pay more.
What does a YES vote mean?
A YES vote would replace Colorado’s flat income tax with the graduated rates beginning in 2027.
The additional revenue would be placed in a new Colorado Future’s Account and used to supplement existing funding for:
- K-12 education
- Health care
- Early childhood care and education
The additional revenue would be exempt from the state’s TABOR revenue limit.
What does a NO vote mean?
A NO vote would keep Colorado’s current constitutional requirement for a flat state income-tax rate.
The current 4.4% rate would remain in place unless changed separately under existing law.
What would it cost?
Amendment 87 is projected to increase state income-tax revenue by about $958.4 million in fiscal year 2026-27 and $1.972 billion in fiscal year 2027-28, the first full fiscal year affected by the change. Revenue is projected to increase further in later years as income and population grow.
State law requires the ballot question to list the maximum estimated revenue increase for the first full fiscal year. That figure is $2.7 billion, which reflects potential forecast error and is higher than the current $1.972 billion central estimate.
The Department of Revenue is expected to incur $98,000 in implementation costs in fiscal year 2027-28, followed by about $17,600 in 2028-29 and ongoing costs in later years for system updates and tax-data reporting.
The measure would not reduce current TABOR refunds. The additional revenue collected under Amendment 87 would instead be treated as voter-approved revenue outside the existing TABOR limit.
Arguments for and against
Supporters argue that the measure would reduce income taxes for most Colorado taxpayers while asking higher-income households and businesses to pay more. They also argue that the additional revenue would support education, health care and child care at a time when those services face significant funding pressures.
Opponents argue that the higher top rates could make Colorado less competitive for businesses and high-income earners and could discourage investment or encourage some taxpayers to leave the state. They also argue that the existing flat-tax system is simpler and more predictable, and that the state should prioritize current revenue rather than collect billions more.
Opponents also note that the tax brackets are not indexed to inflation, meaning more income could fall into higher brackets over time.
What does this mean for Johnstown?
Amendment 87 would apply statewide, including to Johnstown residents and businesses.
The effect on an individual taxpayer would depend primarily on Colorado taxable income, not where the taxpayer lives. Residents with taxable income below roughly $510,834 are generally projected to pay less, while those above that level are generally projected to pay more.
Any additional funding reaching Weld RE-5J, health-care programs or early-childhood programs serving the Johnstown area would depend on future decisions by the Colorado General Assembly about how money from the Colorado Future’s Account is distributed.
What if Proposition 136 also passes?
Colorado voters will also consider Proposition 136, which would limit the state income-tax rate to 4.4%.
Because Amendment 87 proposes rates above 4.4% on income over $500,000, the two measures could conflict if both are approved. The Blue Book says the exact outcome would be unclear and could require the General Assembly or a court to resolve.
Official information
The complete ballot analysis, fiscal-impact statement and measure documents are available through the Colorado General Assembly’s Amendment 87 page.