Denver occupational privilege tax (OPT): what employees should know

Denver's Occupational Privilege Tax (OPT), sometimes called a head tax, is not the same as Colorado state income tax. It is a local business tax tied to working in Denver, and it is handled separately from the flat Colorado income tax estimate on our Colorado paycheck calculator.

Why it is not on the Colorado calculator

OPT has its own filing rules, thresholds, and employer vs employee responsibilities published by the City and County of Denver. Until those rules are modeled with current official rates, we keep OPT off the statewide calculator rather than guess a local withholding line.

What to check on your pay stub

If you work in Denver, ask payroll whether OPT or a similar local occupational tax appears as a separate deduction. Amounts and who pays can depend on employer size and whether you meet the city's monthly earnings threshold.

Official sources

Confirm current rules on Denver's business tax pages: Denver business tax information and the business tax FAQ. Use the general paycheck calculator for federal and Colorado state estimates, then compare with your actual Denver pay stub.