How Colorado counties are affected by "big, beautiful bill" tax cuts
Add Axios as your preferred source to
see more of our stories on Google.
Colorado's wealthiest counties are poised to see steeper tax cuts than the U.S. average next year under President Trump's "big, beautiful bill," per an analysis from the Tax Foundation, a group that generally favors lower taxes.
Why it matters: Tax cuts free up money for folks to spend on other things — which could be dearly needed next year as wages still haven't caught up with inflation and tariffs threaten to push costs up further, Axios' Emily Peck and Jason Lalljee write.
By the numbers: In Colorado, some of the largest average federal tax cuts in 2026 are projected in mountain resort towns where high-earners and business owners live.
- That includes Pitkin County, home to Aspen, where residents are estimated to see an eye-popping $21,000 average cut — the highest in the state.
- Denver residents are on track to see around $5,300 in savings.
Zoom out: On average, Coloradans will receive a federal tax cut of about $4,300 next year — about 14% higher than the $3,800 national average.
How it works: The bill made the 2017 Trump tax cuts permanent and added new temporary breaks: deductions for tips and overtime income, a cut for seniors and an expanded child-care tax cut.
Reality check: Starting in 2027, the tax bill also slashes social spending on food benefits, health care exchanges and Medicaid.
- For many lower-income Coloradans, those benefit cuts could easily outweigh any gains from tax breaks.