Denver charges a local income tax of $5.75 per employee per month (for employees earning over $499/month) on top of Colorado state tax. Strategic planning is especially important here.
Denver Occupational Privilege Tax: $4.00 per employee/owner/partner/manager per month
Short-term rentals are allowed in Denver but require a license and must be the host's primary residence. A 10.75% lodging tax applies.
Denver's unique Occupational Privilege Tax requires careful payroll management for businesses, as both employees and employers are subject to monthly fees based on income thresholds. Strategic planning around this local tax can optimize overall business tax liability.
These are the dominant professions and industries in Denver. Click your profession to see your personalized write-off list.
These strategies are especially powerful or unique for Denver residents and business owners. Click any strategy to learn more.
Running an LLC or business in Denver? Here's what you need to know about local taxes, entity structure, and the write-offs that matter most in this city.
Denver business owners face both Colorado state taxes and Denver-specific local taxes. Understanding both layers is essential for effective tax planning.
Common questions about Denver business taxes, LLC structure, and local write-offs — answered by Uncle Kam's tax advisors.
Yes. Denver has a local income tax of $5.75 per employee per month (for employees earning over $499/month) on top of Colorado state income taxes. This makes Denver one of the higher-tax cities in the country. Business owners and high earners should prioritize aggressive deduction strategies and consider entity structuring to minimize their combined state and local tax burden.
Book a Free Strategy Call →Denver Occupational Privilege Tax: $4.00 per employee/owner/partner/manager per month
Book a Free Strategy Call →The top write-offs for Denver business owners include: S-Corp election to reduce self-employment taxes, home office deduction, vehicle and mileage, Section 179 equipment expensing, business meals and entertainment, retirement contributions (Solo 401k/SEP-IRA), and Denver-specific deductions like local business taxes paid. Uncle Kam's advisors know the Denver tax landscape — book a free strategy call.
Book a Free Strategy Call →Forming an LLC in Denver provides liability protection and pass-through taxation. For most Denver business owners earning over $60,000 net profit, adding an S-Corp election to your LLC can save thousands in self-employment taxes annually. Colorado has specific LLC requirements and fees — get a personalized recommendation from Uncle Kam's tax advisors.
Book a Free Strategy Call →Short-term rental rules in Denver: Short-term rentals are allowed in Denver but require a license and must be the host\ From a tax perspective, STR owners can deduct mortgage interest, property taxes, insurance, repairs, depreciation, and management fees. The short-term rental loophole may allow you to offset W-2 income with rental losses if you qualify.
Book a Free Strategy Call →Yes — Denver has designated Opportunity Zones where investors can defer and reduce capital gains taxes by investing in qualified opportunity funds (QOFs). This is one of the most powerful tax deferral strategies available for real estate and business investors in Denver. Uncle Kam can connect you with advisors who specialize in OZ investments.
Book a Free Strategy Call →Freelancers and self-employed professionals in Denver can reduce taxes by: electing S-Corp status (saves $5k–$20k/year for most), maximizing the home office deduction, deducting all business-related expenses, contributing to a Solo 401(k), and using the QBI deduction (up to 20% of qualified business income). Denver's combined state and local tax burden makes these strategies even more valuable. Get a free tax review from Uncle Kam.
Book a Free Strategy Call →This city guide is commonly used by the following taxpayer profiles. Click to see all strategies for your situation.
Uncle Kam connects you with vetted CPAs and tax advisors in Denver, Colorado who specialize in maximizing write-offs for your business type.
Find Denver Tax Professionals →Uncle Kam clients save an average of $5,000–$40,000/year. The strategies that make that possible are unlocked on a free strategy call.
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