Colorado taxpayers should prepare for a major change in their Taxpayer’s Bill of Rights (TABOR) refunds in 2026. After years of larger rebate checks, the amount residents will receive will shrink significantly, with many taxpayers only getting enough for a tank of gas, a meal out, or a movie ticket.
This shift reflects Colorado’s fiscal results for the year ending June 30, 2025, which show a much smaller surplus compared to recent years. Here’s a detailed breakdown of the refund amounts, eligibility, and the reasons behind the decline.
Under Colorado’s constitution, the state cannot retain revenue above a certain cap. Any money collected over that limit must be returned to taxpayers through TABOR refunds.
For the fiscal year ending June 30, 2025, the official surplus totaled $296 million. However, $2.7 million of that surplus will cover an accidental overpayment from the previous year. The remainder will be distributed primarily in two ways:
- Homestead Property Tax Refunds – Nearly two-thirds of the surplus will fund reductions for older homeowners, disabled veterans, Gold Star spouses, and others.
- Refund Checks for Taxpayers – The remaining funds will be sent to taxpayers in smaller amounts, based on income levels.
Unlike in past years, when TABOR refunds ranged from $177 to $565 for single filers, the 2026 amounts are substantially smaller. Here’s the full income-based refund schedule for 2026:
| Taxpayer Income | Single Filers | Joint Filers |
|---|---|---|
| Up to $54,000 | $20 | $40 |
| $54,001 – $110,000 | $26 | $52 |
| $110,001 – $176,000 | $30 | $60 |
| $176,001 – $250,000 | $36 | $72 |
| $250,001 – $329,000 | $38 | $76 |
| $329,001 and up | $62 | $124 |
These figures highlight the steep drop in refund value, especially when compared with the larger checks of the last several years.
Several key factors explain the decline in 2026 refund amounts:
- Expanded Tax Credits: Colorado lawmakers recently expanded the Earned Income Tax Credit (EITC) and introduced the Family Affordability Tax Credit (FATC). These programs direct more money toward lower-income households, reducing the funds available for general TABOR refunds.
- Modest Surplus: With only $296 million available this year, the pool of money is much smaller than in previous years, when surpluses were significantly higher.
- Economic Trends: State economists predict Colorado will remain below the TABOR cap in 2026 for the first time since the pandemic, meaning there may be no general refunds at all in 2027.
While general refund checks are shrinking, some households will benefit from other tax credits, such as:
- Colorado Earned Income Tax Credit (EITC): Provides extra relief for lower-wage workers.
- Family Affordability Tax Credit (FATC): Helps families with children offset rising household costs.
These targeted credits will cushion the impact for some residents, even though overall TABOR refunds are declining.
Taxpayers should prepare for significantly reduced refunds in 2026, with payments ranging from just $20 to $62 for single filers.
Payments will be made automatically, with distribution expected in spring and summer of 2026 once returns are processed.
For many, the refunds may no longer represent a meaningful financial boost but rather a symbolic reminder of Colorado’s constitutional revenue limits.
The TABOR refund checks in 2026 will be a stark contrast to recent years, with single filers receiving as little as $20 and no more than $62. This reduction stems from a smaller budget surplus and expanded tax credits for lower-income families.
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While some households may see larger refunds through other programs, Colorado’s general TABOR refunds are entering a period of decline—potentially disappearing altogether in 2027.
Between $20 and $62, depending on income level.
Refunds are expected during spring and summer of 2026, after tax processing.
Because of a smaller $296 million surplus and new tax credits (EITC and FATC) that reduce funds for general refunds.
