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Is Colorado among the Top 10 States with the Lowest Tax Burden In the US?

We recently prepared a comprehensive report of 15 States with the Lowest Tax Burden in the US. Click to see the free report.

But the interesting question to answer is: Is Colorado among the top 10 States with the Lowest Tax Burden In the US?

Colorado

State Tax Burden: 7.95%

Income Tax: 4.40%

Sales Tax: 2.90%

Property Tax: 0.55%

Colorado has a flat individual income tax rate of 4.40% and a 4.40% corporate income tax rate. The southwestern US state charges a sales tax of 2.90% and other local authorities in the state can impose up to 4.87% of sales tax, taking the combined state and average local sales tax to 7.78%. The state imposes a property tax rate of 0.55%, one of the lowest among all the states in the US.

Why Are Companies Relocating to Colorado?

Denver is the main metropolitan city in Colorado that attracts all the big companies. Data analytics giant Palantir Technologies Inc. (NYSE:PLTR) relocated to Denver in 2020. The Western Union Company (NYSE:WU) and DaVita Inc. (NYSE:DVA) are two of the leading Fortune 500 with headquarters in Colorado.

On May 1, The Denver Post, a media publication, mentioned DaVita Inc. (NYSE:DVA) among the top workplaces in 2024. On May 2, DaVita Inc. (NYSE:DVA) released its earnings for the first quarter of 2024. The healthcare firm posted earnings per share of $2.38, beating consensus estimates by $0.46. DaVita Inc. (NYSE:DVA) posted a revenue of around $3.07 billion, surpassing estimates by $49.90 million. Here are some of the comments from DaVita Inc.’s (NYSE:DVA) Q1 2024 earnings call:

“Through the first quarter, we continued building on the momentum generated through 2023, demonstrating operational discipline while continuing to find opportunities to invest, innovate and most importantly deliver clinical excellence.

Our aspiration is to enable as many patients as possible to receive this life-changing gift. Let me highlight three ways that DaVita is helping to address the systemic challenges of kidney transplants. The first is patient referrals to transplant centers. We recently achieved our highest monthly rate with more than two-thirds of DaVita patients under the age of 75 years old being referred for transplant.” 

Other leading tech companies that have a major presence in Colorado include Salesforce, Inc. (NYSE:CRM), Meta Platforms, Inc. (NASDAQ:META), Zoom Video Communications, Inc. (NASDAQ:ZM), and Comcast Corporation (NASDAQ:CMCSA). According to data compiled by FDI Intelligence, 22 companies relocated to Colorado between 2019 and 2023. According to data from the US Census Bureau, the US recorded around 447,449 new applications filed between January 2023 and January 2024. Out of those 447,449 new applications, 10,848 were filed in Colorado, an increase of almost 9.5% year-over-year.

loneroc/Shutterstock.com

Tourism in Colorado and Tax Revenue?

According to a report by the Colorado Office of Economic Development and International Trade (OEDIT), travel spending in Colorado soared from $22.1 billion in 2021 to $26.1 billion in 2022, a rise of 25% year-over-year. Whereas, the number of visitors increased from 84.2 million in 2021 to 90 million in 2022, up by 6.5% year-over-year, as per the Longwoods Travel USA Report. The tourism industry added around $1.7 billion in state and local tax revenue in 2022. By the end of fourth quarter of 2023, Colorado’s state government had generated $4.93 billion from state taxes, according to the US Census Bureau.

Is Colorado the State with the Lowest Tax Burden?

On average, individuals in Colorado pay 7.95% of their income in state and local taxes, compared to the US’s average state tax burden of 11.41%, as of 2024. Colorado is one of the states with the lowest tax burdens, however, it ranks 12th on Insider Monkey’s list. You can go and see our comprehensive report on all the 15 states with the lowest tax burden in the US.

Click to see The Top 15 States that Have the Lowest Tax Burden in the US in 2024.

Disclosure: None. This article is originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

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Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

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This is the #1 Gold Stock for your 2025 watch list

Brace yourself.

There’s no question that thanks to Washington’s disastrous policies – and out-of-control spending – the outlook for the U.S. economy now appears dire.

And with the U.S. national debt now rising by a staggering $1 trillion every 100 days…there are no easy solutions to help get the nation back on track.

While Jay Powell and the Biden-Harris White House sweat out a federal debt that has reached $35.5 trillion – and climbing – many investors have raced to the sidelines with their cash.

But the truly savvy investors laugh while Jay Powell frets, because they understand that this ridiculous spending has also triggered a nearly unprecedented bull market for gold.

Just look at this chart for the yellow metal.

After testing the $2,000/ounce mark in August 2020 and February 2022, gold traded down to near $1,600/ounce in October 2022.

Since then, gold prices have been on an absolute tear and currently sit above $2,600/ounce, a $1,000/oz increase in just two short years.

But the surge in gold prices that we’ve seen over the past few years could pale in comparison to what’s on the horizon. As shocking as it may sound, with no end in sight for the Fed’s money printing, we could see the price of gold increase by many multiples in the years ahead.

With soaring inflation, the dollar stands to lose more and more of its value, which means you’ll need a lot more dollars to buy gold.

According to legendary investor Peter Schiff, today’s seemingly-high gold price of $2,600/oz. “could soar to $26,000/oz. — or even $100,000/oz. There’s no limit because gold isn’t changing — it’s the value of the dollar that’s decreasing.”[i]

Meanwhile, as profitable as gold has been, select gold mining stocks have really kicked into high gear, handing investors even bigger profits.

Click to continue reading…