With rising prices and ongoing economic challenges in the United States, many people are hoping for some form of financial relief. While the federal government has not confirmed any new $800 stimulus checks for April 2025, the state of Colorado is stepping up to support its residents.
Thanks to a program known as TABOR—short for Taxpayer’s Bill of Rights—Colorado plans to distribute refunds of up to $1,600 in spring 2025. This money is not coming from federal aid, but from the state’s budget surplus collected in the 2024 fiscal year.
Let’s break down what this means, who qualifies, and how to claim the refund.
What Is the TABOR Refund?
TABOR is a unique law in Colorado that requires the state to return extra tax money to residents whenever there is a large budget surplus. For the 2024 tax year, Colorado has around $1.4 billion in surplus, which will now be returned to eligible taxpayers.
This refund is not automatic every year. It is only activated when the surplus exceeds a certain limit—and 2025 qualifies.
How Much Will You Get?
There are two main types of refunds under the TABOR system in 2025:
- Temporary Income Tax Reduction
All Colorado taxpayers will enjoy a slight cut in their income tax rate—from 4.40% to 4.25%—on their 2024 state tax return. - Sales Tax Rebate
Residents who meet all the eligibility conditions can get a cash payment, which could be as high as $1,600 for joint filers.
Those filing individually will receive a lower amount, based on adjusted gross income and other factors set by the Colorado Department of Revenue.
Who Qualifies for the TABOR Rebate in 2025?
To be eligible for this refund, you must meet all three of the following conditions:
- Lived in Colorado for at least half of the 2024 tax year
- Be at least 18 years old as of January 1, 2025
- File a 2024 Colorado state tax return or apply for the PTC (Property/Rent/Heat Tax Rebate) by April 15, 2025
You must also submit your information online using the official Colorado Department of Revenue website. Make sure to:
- Fill in the online form
- Attach the required documents
- Double-check your details before submission
When Will the Payments Arrive?
The refunds are expected to be issued in spring 2025, likely between April and June. However, you need to file your tax return or PTC application before October 15, 2025, to be considered.
Colorado’s TABOR refund is one of the most helpful state-level financial aids available in 2025. While it’s not a federal stimulus check, it still offers a welcome financial boost for eligible individuals and families. For those still recovering from tough times, this extra money—up to $1,600—can help cover daily costs, bills, or rent.
Make sure you file your 2024 state taxes on time and stay updated through the Colorado Department of Revenue website to avoid missing out.