Colorado graduated income tax proposal qualifies for 2026 ballot

Colorado’s Proposed Initiative 195 has officially qualified for the 2026 ballot after proponents submitted 130,938 valid signatures, exceeding the required 124,238. The measure seeks to replace the state’s current 4.4% flat income tax with a graduated system.

If passed, the initiative would increase the tax rate to 7.4% for income exceeding $500,000 and up to 8.4% for income above $1 million, affecting the top 3% of earners. Conversely, the measure would provide slight tax cuts for the remaining 97% of taxpayers.

Implementation of this graduated system would require repealing a portion of the Taxpayer’s Bill of Rights, a 1992 constitutional amendment that mandates a flat tax. Because the measure seeks to repeal rather than amend a constitutional provision, it only requires a simple majority of voters to pass.