MortgageCostsGuide

Mortgage Interest Deduction in Colorado

State income tax rate
4.4%
Itemized deductions allowed
✅ Yes

State-Level Mortgage Interest Deduction

Colorado has a flat 4.4% income tax and conforms to federal itemized deductions, allowing mortgage interest deduction on state returns.

Combined Federal + Colorado Savings

If you paid $18,000 in mortgage interest last year and itemize on both returns, your combined tax savings would be approximately:

  • Federal (22% bracket): $3,960
  • Colorado (4.4% rate): $792
  • Total estimated savings: $4,752

These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.

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