Colorado DOR Adopts Rules on Income Tax Withholding for Gambling Winnings

The Colorado Department of Revenue (DOR) adopted a rule establishing income tax withholding requirements for gambling winnings. The rule sets a 4 percent withholding rate for certain gambling winnings subject to federal withholding, requires payers to register with the DOR, and outlines filing periods, due dates, and annual reporting obligations for payers. The rule took effect Jan. 9, 2026. [Colo. Dep’t of Revenue, Reg. Section 39-22-604-2, 01/21/26 Colo. Reg.]