Bottom line: No - Colorado actually has higher state income tax than Texas. On a $75,000 salary you would pay about $2,567 more per year.
| Salary (single) | Texas tax | Colorado tax | Difference |
|---|---|---|---|
| $50,000 | $0 | $1,505 | Pay $1,505 more |
| $75,000 | $0 | $2,567 | Pay $2,567 more |
| $100,000 | $0 | $3,630 | Pay $3,630 more |
| $150,000 | $0 | $5,755 | Pay $5,755 more |
| $250,000 | $0 | $10,005 | Pay $10,005 more |
Texas: Texas has no state income tax. The Texas Constitution prohibits a personal income tax without voter approval. The state relies heavily on property and sales taxes.
Colorado: Colorado uses a flat tax rate of 4.25% applied to federal taxable income with state-specific modifications.
Your state income tax is set by where you are a resident, not where your employer is. To stop paying Texas tax you must genuinely establish residency in Colorado - register to vote, change your driver's license and car registration, move your primary home, and spend more than half the year there. High-tax states like Texas audit departing high earners, so keep records of your move date.
In the year you move you typically file a part-year resident return in both states: Texas taxes income earned while you lived there, Colorado taxes the rest. Remote workers should note that a handful of states tax income sourced to the state even for non-residents - check before assuming a clean break.
Colorado has a flat state income tax of 4.25%.
On a $75,000 single-filer salary, the state income tax difference is about $2,567/year (against you). Use the calculator for your exact income.
Once you establish residency in Colorado and break Texas residency, new income is taxed by Colorado. Texas can still tax income earned while you were a resident - file a part-year return for the move year.
Texas tax calculator · Colorado tax calculator · Paycheck calculator
Estimates use 2026 state brackets and the standard deduction for a single filer; they exclude local taxes, credits and federal tax. Verify with a tax professional before relocating.