Tax Planning for Physicians in Colorado Springs, CO (2026)
Physicians in Colorado Springs pay federal tax at up to 37% plus Colorado income tax (a top rate of 4.4%), and local rules add another layer. Here is how the 2026 rules apply to doctors, dentists and practice owners in Colorado Springs, CO.
2026 at a glance for Colorado Springs, CO physicians
| Colorado income tax | Top rate of 4.4% (2026) |
|---|---|
| State tax on $400,000 of state taxable income | $17,600 single / $17,600 married filing jointly |
| State tax on $1,000,000 (married filing jointly) | $44,000 |
| City occupational privilege tax | None |
| Pass-through entity tax | Available (elective) |
| Top federal rate | 37% (from $640,600 single / $768,700 joint) |
State tax figures apply Colorado's 2026 brackets to state taxable income and ignore credits, deductions and local taxes.
Local taxes in Colorado Springs
Colorado Springs does not levy an occupational privilege tax. In Colorado only Denver ($5.75 a month per employee), Glendale, Sheridan and Greenwood Village charge one, and Aurora repealed its tax on January 1, 2025. Physicians who work shifts in Denver owe Denver's monthly tax for those months.
State rules that apply in Colorado Springs
Yes. The state has an elective pass-through entity tax (PTET) that partnerships and S corporations can use to deduct state income tax at the entity level.
- Colorado taxes income at a flat 4.4% and starts from federal taxable income, so most federal deductions flow straight through to the state return.
- Colorado has added an add-back for high earners' itemized or standard deductions above certain income levels in recent years, so confirm the current rule before relying on large itemized deductions.
Where the savings usually come from
For most Colorado Springs physicians, federal planning drives the largest results: W-2 strategies such as 401(k)/403(b), 457(b) and the backdoor Roth; 1099 and locum planning; entity and cash balance plan design for practice owners; and real estate strategies for physicians with time to participate.
More physician tax guides
- Other Colorado cities: Denver, Aurora, Fort Collins.
- State rules: Colorado physician tax guide and all 50 state guides.
- By specialty: Anesthesiologists, Dentists, Ophthalmologists, Hospitalists and every specialty.
- Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.
Frequently asked questions
Does Colorado Springs have a city income tax?
Colorado Springs does not levy an occupational privilege tax. In Colorado only Denver ($5.75 a month per employee), Glendale, Sheridan and Greenwood Village charge one, and Aurora repealed its tax on January 1, 2025.
What state income tax do physicians in Colorado Springs pay?
Colorado has a top rate of 4.4% for 2026. On $400,000 of state taxable income, the 2026 brackets produce about $17,600 for a married couple filing jointly, before credits.
Can GenWealth 360 work with physicians in Colorado Springs?
Yes. GenWealth 360 works with physicians, dentists and practice owners nationwide, including Colorado Springs, through virtual meetings. Our office is in Long Beach, California.
Get a tax plan built for your situation
GenWealth 360 builds proactive, tax-first plans for physicians, dentists and medical practice owners in all 50 states. Start with a conversation about your income, entity and goals.
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Sources
This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.