For Coloradans tax season also means receiving their annual TABOR (Taxpayer’s Bill of Rights) refunds. These checks offer a valuable opportunity for financial relief, to use the refund in whatever way that best suits their needs; whether it's spent on everyday expenses, saved for future goals, or invested for long-term growth. However, the TABOR refunds may look a bit different than what many residents have become accustomed to.
What Is TABOR and How Does It Work?
The TABOR refund system is rooted in the Taxpayer’s Bill of Rights (TABOR) law, a unique provision in Colorado’s state constitution that limits the amount of revenue the state can collect. 
When the state generates more revenue than the legal cap allows, it must return the excess to taxpayers in the form of refunds.
In fiscal year 2024, the state of Colorado reported an excess of about $1.4 billion in revenue. When combined with the excess from the previous year, the total surplus reached approximately $1.7 billion. This surplus is what triggers the need for refunds.
When Will You Receive Your TABOR Refund?
When you receive your TABOR refund depends on when you file your state income tax return. It’s important to note that even if you file your taxes early, you likely won’t see the refund for a few weeks, as it takes time to process and issue the checks.
The timing is also partly influenced by whether you have the refund deposited electronically or mailed. According to the Colorado Department of Revenue, refunds sent via electronic deposit typically arrive within two weeks of processing, while physical checks can take longer to be delivered.
How Much Can You Expect?
While many Coloradans received over $800 last year, 2025’s TABOR refunds are expected to be much lower. Projections from the Colorado Legislative Council suggest that, for tax year 2024, single filers can expect an average refund of $326, and joint filers will see an average of $652.
This decrease in TABOR refunds is partly due to chang
es in state legislation. Recent laws signed into effect divert excess revenue to other programs, such as child tax credits and senior tax credits. TABOR refunds are expected to continue to decrease each year as more revenue is directed at these new initiatives.
How to Make the Most of Your Refund
While the TABOR refund may be smaller in the coming years, it still offers Coloradans an opportunity to boost their financial situation. Whether you decide to use the refund for immediate needs like paying down debt, household expenses, or covering bills, or setting it aside for long-term savings, every little bit helps.
If you’re looking to maximize the value of your refund, consider saving it in a secure, interest-earning account. Credit Union of Denver offers options like a Certificate of Deposit (CD) or a Money Market account, both of which offer competitive returns. These saving accounts can help your refund grow over time, offering financial stability and a chance to earn additional interest. Give us a call at 303.234.1700 or stop by one of our branches to get started.
Though this year’s TABOR refund checks may be smaller than those in previous years, they still provide Coloradans with an opportunity for financial relief. Whatever you decide to do with the money from TABOR, understanding how and when to expect your refund can help you plan accordingly. The deadline for filing your 2024 state income taxes is April 15, 2025, so be sure to submit your return on time to qualify for the refund. As a Credit Union of Denver member you can save on tax services.