Colorado Occupational Privilege Taxes
Why are city taxes owed?
Certain municipalities in Colorado levy an Occupational Privilege Tax (OPT), which is based on the number of people working for a company each month. This tax can even apply to unpaid Workers – such as in the City of Denver.
Your business may be responsible for OPT if any employees (or in some cases, unpaid staff) perform work in the following cities:
- Aurora
- Denver
- Glendale
- Greenwood Village
- Sheridan
Aurora Occupational Privilege Tax
As of January 1, 2025, the City of Aurora has eliminated its Occupational Privilege Tax. Individuals working within Aurora city limits are no longer subject to this tax.
Denver Occupational Privilege Tax
In Denver, any worker who earns more than $499 in a calendar month is considered taxable for that month.
- Employee portion: $5.75 per month
- Employer portion: $4.00 per month
Employers must also pay the $4.00 monthly employer tax for unpaid employees who work within Denver city limits.
Glendale Occupational Privilege Tax
Employees working in Glendale who earn more than $750 in a calendar month are subject to:
- Employee portion: $5.00 per month
- Employer portion: $5.00 per month
This creates a combined total of $10.00 per month per employee.
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Self-employed individuals, business owners, partners, and officers who do not receive wages or commissions are only required to pay the employer portion.
Greenwood Village Occupational Privilege Tax
The Greenwood Village OPT includes two components:
- Employee portion: $2.00 per month
- Employer portion: $2.00 per month
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Both apply when an individual earns $250 or more in a month.
Owners, partners, and officers who earn less than $250 per month are only liable for the employer portion.
Sheridan Occupational Privilege Tax
The City of Sheridan requires:
- Employee portion: $3.00 per month (withheld via payroll)
- Employer portion: $3.00 per month
Employers must remit both portions to the City of Sheridan for each employee.
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