Colorado’s withholding formula and Form DR 0004, Colorado Employee Withholding Certificate, were updated for 2026 following federal tax changes in the One Big Beautiful Bill Act, Pub. L. 119-21, the state revenue department said Nov. 5.
The withholding formula contains increased standard withholding allowances based on federal filing status in case an employee does not submit Form DR 0004: $5,500, up from $5,000 for most statuses or $11,000, up from $10,000, for the married filing jointly or qualified surviving spouse statuses. It also contains an addition to the instructions: “Do not adjust Colorado withholding outside of this calculation. An employee ...
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