Tax Planning for Physicians in Fort Collins, CO (2026)

Physicians in Fort Collins 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 Fort Collins, CO.

2026 at a glance for Fort Collins, CO physicians

State tax figures apply Colorado's 2026 brackets to state taxable income and ignore credits, deductions and local taxes.

Local taxes in Fort Collins

Fort Collins 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 In Colorado only Denver ($5.75 a month per employee), Glendale, Sheridan and Greenwood Village charge one, and Aurora repealed its tax on January 1, 2025.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 Fort Collins

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 Fort Collins 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, Colorado Springs, Aurora.
• 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.

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.