Colorado Occupational Privilege Taxes
Several cities in Colorado impose an Occupational Privilege Tax (OPT) — a local tax based on the number of individuals working for a business within city limits. In some cases, this tax even applies to unpaid workers. If you have employees working in any of the following cities, your business may be responsible for collecting and submitting this tax:
As of January 1, 2025, Aurora has officially discontinued its Occupational Privilege Tax. Employers and employees are no longer required to remit OPT payments to the city.
In Denver, employees who earn over $499 in a given month are subject to a $5.75 monthly tax for the privilege of working within the city. In addition to the employee’s portion, employers must pay a $4.00 monthly tax per qualifying employee.
Note: Employers are also responsible for paying the employer tax portion for unpaid workers operating within Denver city limits.
Some Colorado cities impose a local payroll tax known as Occupational Privilege Tax. You are responsible for collecting and submitting this tax if your employees work in any of the following municipalities:
Be sure to report your local OPT rate to Beyond so we can accurately calculate and file on your behalf.
Beyond makes it easy to manage your payroll tax obligations in Colorado and across the U.S. From tax registrations to filings and deposits, we help you stay compliant, so you can focus on growing your business.
In Glendale, employees earning more than $750 in a calendar month are each subject to a $5 monthly tax, which is matched by the employer for a total of $10 per employee per month.
Self-employed individuals, owners, and partners who don’t earn wages or commissions are only liable for the employer portion.
What Beyond needs:
To register your business, visit the Glendale Tax & Licensing Portal.
This city imposes both an employee and employer tax of $2 per month once an individual earns $250 or more in a given calendar month.
✔️ Owners or officers earning below $250 monthly are only subject to the employer’s portion.
What Beyond needs:
More information is available via the Greenwood Village Occupational Tax Resource.
Sheridan enforces a $3 per month OPT, which is withheld from each employee’s paycheck. Employers must also contribute a matching $3 per employee per month, submitting both parts directly to the City of Sheridan.
What Beyond needs:
Need details? Visit the City of Sheridan’s Tax Page.
