For thousands of Coloradans, April 2025 will bring more than just spring: a direct deposit from the state thanks to the Taxpayer Benefits Act (TABOR). After years of uniform refunds, this time the amounts—ranging from $177 to $1,130—will depend strictly on income reported in 2024.
According to the Colorado Department of Revenue, the change reflects an unprecedented redistribution, with higher-income taxpayers receiving up to three times more than lower-income taxpayers. But this cash injection has an expiration date: lawmakers already warn that refunds could plummet by 88% by 2026.
How the TABOR tax refunds program works in Colorado
Since 1992, the constitutional mechanism TABOR has required Colorado to return tax surpluses to its residents, but 2025 will mark a turning point. For the first time in three decades, the traditionally egalitarian refunds will adopt a tiered model where income level determines whether individuals receive $177 or $565.
Official data reveals that this shift occurs just as the program’s future hangs in the balance: legislative projects seek to redirect those funds toward social credits, drastically reducing direct payments starting in 2026. For the 3.2 million eligible residents, understanding the new rules is not trivial: it means securing cash before the model changes.
Apart from this, you should know that not all refunds are the same for everyone, and according to the Colorado Department of Revenue, payments are tiered based on reported income, as follows:
Individual filers:
- ≤ $53,000: $177
- $53,001 – $105,000: $240
- $105,001 – $166,000: $277
- $166,001 – $233,000: $323
- $233,001 – $302,000: $350
- $302,001: $565
Joint filers:
- ≤ $53,000: $354
- $53,001 – $105,000: $480
- $105,001 – $166,000: $554
- $166,001 – $233,000: $646
- $233,001 – $302,000: $700
- $302,001: $1,130
This model proportionally benefits higher-income taxpayers, a shift after years of fixed amounts. For a single person earning $305,000, the refund ($565) is triple that of someone earning $52,000 ($177).
Dates to expect TABO tax refund: File early to pay faster
According to Colorado authorities, there are two payment dates:
- Those who filed their state tax return before April 15, 2025, received their refund in mid- to late April.
- Those who filed their state return between April 15 and October 15, 2025 (having formally received an extension) can expect their payment within 60 days of processing.
The requirements are similar to those for other types of state tax refunds. First, you must have lived in Colorado for all of 2024 and be at least 18 years old by January 1, 2025.
You’ll also need to file the following documents: a 2024 state tax return or a PTC (Property Tax/Rent/Heat Rebate) application by October 15. No further action is required if you file taxes. Payment is automatic.
