9/26/2025
COLORADO: Last Chance to Claim Your 2024 TABOR Refund
Deadline October 15, 2025
If you’re a Colorado taxpayer, the window is closing to claim your 2024 TABOR refund. Thanks to the state’s Taxpayer’s Bill of Rights (TABOR), excess state revenue gets returned to residents. For the 2024 fiscal year, that meant a tax rate reduction and refund opportunities. But if you haven’t filed yet, you need to act soon.
This article will walk you through everything you need to know: how TABOR refunds work, who’s eligible, the upcoming deadline, and how people in Arvada and across Colorado can make the most of their refund. We’ll also dig deeper into why TABOR refunds are shrinking and what that means for your future tax planning. By the end, you’ll have the knowledge to act before October 15 and avoid leaving money on the table.
1. The Key Deadline: October 15, 2025
The first thing to understand is timing. Colorado’s tax system runs on the state’s fiscal year, which ends June 30. After the state closes its books, officials calculate whether revenues exceeded TABOR’s constitutional cap. If they did, that excess must be refunded to taxpayers.
For the 2024 fiscal year, refunds became available in 2025 when residents began filing their state tax returns. While most taxpayers file by the standard April 15 deadline, Colorado law allows an extension until October 15, 2025. That extension is your last chance. If you haven’t filed by then, you forfeit your TABOR refund.
This is especially important for:
Residents who were waiting on documents or corrections before filing.
People with little or no taxable income who didn’t realize they needed to file to claim the refund.
Retirees or low-income residents who qualify for the Property Tax, Rent, and Heat Rebate (PTC) program instead of filing a traditional return.
If you fall into any of these categories, October 15 is a hard stop. There’s no wiggle room.
2. How TABOR Refunds Work This Year
TABOR refunds can take different forms depending on the state’s decisions and the size of the surplus. In past years, refunds have been distributed as flat checks mailed to households. Other years, they’ve come as credits on tax returns or reductions in tax rates.
For 2024, the refund has two components:
-
Tax Rate Reduction – The state reduced the income tax rate from 4.40% to 4.25%. This benefits every taxpayer by lowering the amount owed on taxable income.
- Example: If your taxable income is $70,000, the 0.15% cut saves you about $105.
- Small businesses and self-employed taxpayers see significant benefits since they often have higher taxable income.
- Sales Tax Refund – On top of the rate reduction, Colorado issues a sales tax refund to full-year residents. This is claimed when you file your state income tax return. For those who don’t need to file a full return, the PTC application offers another way to claim.
The combination makes the 2024 refund unique. Instead of just one distribution method, taxpayers benefit both at filing time and through lower rates applied across the year.
3. Who’s Eligible
Eligibility is straightforward but worth clarifying:
- Full-Year Residents: If you lived in Colorado for all of 2024 and file a state income tax return, you’re automatically eligible for the sales tax refund.
- Part-Year Residents: You may qualify for a reduced refund, depending on how long you lived in the state.
- Non-Filers: If you don’t typically file a return, you may still qualify through the Property Tax, Rent, and Heat Rebate (PTC) program. This program supports seniors, individuals with disabilities, and low-income residents. Filing a PTC application by October 15 can secure your refund.
It’s important to stress that everyone who lived in Colorado in 2024 should consider whether they’re eligible. Even if you had no taxable income, the TABOR refund isn’t based on what you paid—it’s based on residency and filing.
4. Federal Tax Impact
One of the most common questions we hear in Arvada is whether TABOR refunds affect your federal taxes. The good news: they don’t.
Refunds under TABOR are not considered taxable income at the federal level. That means:
Refunds under TABOR are not considered taxable income at the federal level. That means:
- You don’t have to report them as income on your IRS return.
- They won’t increase your taxable income for federal purposes.
- You avoid the messy situation that sometimes arises with state tax refunds in other states.
However, it’s still smart to keep documentation. If you’re ever audited or asked about discrepancies between your state and federal returns, being able to show proof of your refund avoids headaches.
5. Why TABOR Refunds Are Shrinking
Looking ahead, TABOR refunds are likely to get smaller—or disappear altogether. Why? Because Colorado has expanded several tax credits and rebates that reduce the size of the state’s TABOR surplus. For example:
- Child Tax Credit – Expanded benefits reduce state revenue.
- Earned Income Tax Credit (EITC) – Larger credits mean more money stays with low-income working families.
- Senior Property Tax Exemptions – Broader eligibility reduces state coffers.
When the state collects more but pays out more in credits, less revenue is left over to be classified as “excess” under TABOR. That means smaller refunds.
For Colorado residents, this year’s refund could be one of the last meaningful ones for a while. If you’ve received hundreds of dollars in past TABOR checks, don’t be surprised if future amounts are far less.
6. How Arvada Residents Can Use Their Refund Wisely
While TABOR refunds aren’t usually huge, they’re still money you can put to good use. In Arvada, where the cost of living continues to rise, a little planning can go a long way.
Here are smart ways to use your refund:
Here are smart ways to use your refund:
- Apply it toward estimated tax payments if you’re self-employed or run a small business in Olde Town or West Arvada. This keeps you ahead of tax obligations and avoids penalties.
- Contribute to a retirement account. Even a modest refund invested in an IRA can grow significantly over time.
- Boost emergency savings. Unexpected expenses—car repairs, medical bills, or home maintenance—can derail budgets. A TABOR refund can strengthen your cushion.
- Support education savings. Parents can add refunds to 529 college savings plans, giving kids in Arvada schools a head start.
- Offset property taxes. With property assessments climbing in Jefferson County, putting your refund toward your property tax bill can ease the burden.
7. What Happens If You Miss the Deadline
If you miss the October 15 deadline, the state keeps the money. There’s no second chance. Unlike federal tax refunds, where you may have up to three years to file a late return and still claim, Colorado’s TABOR refund rules are stricter.
This makes awareness critical. Many people with little taxable income assume they don’t need to file. But missing a filing could mean forfeiting a refund that rightfully belongs to you.
For seniors, renters, and low-income residents, the PTC program is especially important. Don’t assume you’re not eligible—check the rules, and apply if you qualify.
This makes awareness critical. Many people with little taxable income assume they don’t need to file. But missing a filing could mean forfeiting a refund that rightfully belongs to you.
For seniors, renters, and low-income residents, the PTC program is especially important. Don’t assume you’re not eligible—check the rules, and apply if you qualify.
8. Frequently Asked Questions (FAQs)
Q: Do I need to apply separately for the TABOR refund if I file my return?
A: No. Filing your Colorado income tax return automatically applies the refund. Only those using the PTC program need a separate application.
Q: How much is the refund this year?
A: It varies depending on income and filing status, but every full-year resident benefits from the tax rate cut, plus a base sales tax refund.
Q: Can the refund be garnished for unpaid debts?
A: Yes. Like other state refunds, it may be applied to past-due child support, unpaid taxes, or other government debts.
Q: Do renters qualify for the TABOR refund?
A: Yes. TABOR refunds are based on residency, not homeownership. Renters qualify just as homeowners do.
A: No. Filing your Colorado income tax return automatically applies the refund. Only those using the PTC program need a separate application.
Q: How much is the refund this year?
A: It varies depending on income and filing status, but every full-year resident benefits from the tax rate cut, plus a base sales tax refund.
Q: Can the refund be garnished for unpaid debts?
A: Yes. Like other state refunds, it may be applied to past-due child support, unpaid taxes, or other government debts.
Q: Do renters qualify for the TABOR refund?
A: Yes. TABOR refunds are based on residency, not homeownership. Renters qualify just as homeowners do.
9. Planning for the Future
As TABOR refunds shrink, it’s important to think about tax planning beyond just this year. Consider:
- Reviewing with a tax professional how new Colorado credits affect you.
- Adjusting withholding or estimated payments to reflect the lower 4.25% tax rate.
- Exploring other opportunities to reduce your tax liability through retirement contributions, education savings, or charitable giving.
In Arvada, where many families balance the costs of housing, commuting, and raising children, proactive tax planning can mean real financial relief.
10. Take Action Now
The clock is ticking. If you haven’t filed your 2024 Colorado return—or submitted a PTC application—do it before October 15, 2025. Missing the deadline means giving up money the state owes you.
Bottom line: TABOR refunds are a Colorado tradition, but they’re changing. This year offers a meaningful benefit, both through lower income tax rates and direct refunds. For Arvada residents, the opportunity is too valuable to ignore. File now, plan ahead, and put your refund to work for your future.
Need help filing or figuring out your eligibility? Our tax professionals in Arvada are here to make sure you claim every dollar available. Don’t wait—October 15 is right around the corner.
Bottom line: TABOR refunds are a Colorado tradition, but they’re changing. This year offers a meaningful benefit, both through lower income tax rates and direct refunds. For Arvada residents, the opportunity is too valuable to ignore. File now, plan ahead, and put your refund to work for your future.
