A political group is hoping to bring a measure to the 2026 ballot that would eliminate state taxes on tips and overtime pay, aligning Colorado’s policy with a recent change at the federal level.  

Advance Colorado, which describes itself as an organization “focused on reversing radical policies that are harming the state,” argued that taxing tips and overtime unfairly burdens working-class residents. 

“In Colorado, our industrial employees, first responders, and healthcare professionals often work overtime to serve the public and make ends meet for their families,” the group said in news release. “Waitresses, hairdressers, delivery drivers, and other manual laborers count on tips to barely afford life in our state.”

Following Congress’ passage of legislation that excluded overtime pay from federal income tax, Colorado passed its own bill this past legislative session requiring taxpayers to include overtime pay as taxable income for their state tax returns.

The proposed ballot measure would repeal that state requirement and prevent Colorado from collecting taxes on overtime and tips in the future.

According to Advance Colorado, Gov. Jared Polis is considering calling a special session to add taxes to tips and move up the timeline to impose the tax on overtime and tips.

The measure will need to clear the Title Board and collect enough signatures to qualify for the 2026 ballot.