A tax is a charge or levy of money made by a governmental entity (state, local, or federal) against a taxpayer—usually a U.S. citizen or a person living or working in the United States. There are many kinds of taxes, including income tax, capital-gains tax, property tax, franchise tax, gift tax, ad valorem tax, sales tax, use tax, inheritance tax, and estate tax.

In Colorado, as in other states, taxpayers are subject to various forms of taxation. The state imposes an income tax on individuals, with a flat rate that applies to all taxable income. Capital gains are also taxed as income, but Colorado allows a deduction for a portion of net capital gain derived from assets located in Colorado. Property taxes are levied by local governments and are based on the assessed value of real and personal property. Colorado does not have a state inheritance tax, but it does have an estate tax that is linked to the federal estate tax; however, due to changes in federal law, the Colorado estate tax is effectively not applicable for individuals who died after 2004. The state also imposes a sales tax on the purchase of goods and services, and a use tax on the storage, use, or consumption of goods within Colorado that were not purchased with a Colorado sales tax. Local jurisdictions may add additional sales and use taxes on top of the state rate. There is no franchise tax in Colorado. Gift tax is not imposed by the state but is a federal tax. It's important for taxpayers to consult with an attorney or tax specialist to understand their specific tax obligations and any potential deductions or credits they may be eligible for.