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On January 30, 2026, Colorado officials announced a series of proposed tax increases aimed at bolstering funding for education and infrastructure projects across the state. The proposed measures, if approved by state lawmakers, would represent the first significant tax hikes in Colorado in over a decade.One of the key proposals is a plan to increase the state's income tax rate for high earners. Under the plan, individuals earning over $250,000 per year and couples earning over $500,000 would see their tax rate jump from 4.63% to 5.9%. Proponents of the increase argue that it would help to provide much-needed funding for public schools, which have long been underfunded in the state.In addition to the income tax increase, the proposed package includes a hike in the gasoline tax by 10 cents per gallon. This increase would help fund critical infrastructure projects, such as road repairs and public transportation improvements, which have been neglected due to a lack of adequate funding.State officials estimate that the proposed tax increases would generate an additional $1.3 billion in revenue annually. This additional funding would be used to address various pressing needs in Colorado, including reducing class sizes, improving school facilities, and repairing and expanding the state's crumbling infrastructure.However, not everyone is on board with the proposed tax hikes. Opponents argue that raising taxes will hurt the state's economy and drive away high-income earners, leading to job losses and reduced economic growth. They also argue that the state should focus on cutting spending and finding efficiencies in government operations rather than raising taxes.The proposed tax increases will now be considered by the Colorado Legislature, where lawmakers will debate the merits of the plan before making a final decision. If approved, the tax hikes could go into effect as soon as next year, providing a much-needed boost to education and infrastructure funding in the state.