Tax Planning for Physicians in Denver (2026)
Denver does not tax income, but anyone who earns at least $500 in a month for work in Denver pays the Occupational Privilege Tax, and practices pay the business portion for each employee and owner.
2026 at a glance
| Employee OPT | $5.75 per month |
|---|---|
| Business OPT | $4.00 per month per taxable employee, owner or partner |
| Colorado rate | 4.4% flat |
Planning priorities
- The OPT is small, but practices with many providers and staff should budget it and file monthly or annually as required.
- Colorado starts from federal taxable income, so most federal planning carries through to the state return.
- Practice owners can elect Colorado's pass-through entity tax.
See the full Colorado physician tax guide.
More physician tax guides
- Other Colorado cities: Colorado Springs, Aurora, Fort Collins.
- State rules: Colorado physician tax guide and all 50 state guides.
- By specialty: Neurosurgeons, Pain Management Physicians, Orthopedic Surgeons, Emergency Physicians 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 Denver have a city income tax?
No. It levies the Occupational Privilege Tax, a flat monthly tax on people who work in Denver and on their employers.
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.