Denver Occupational Privilege Tax: The "Head Tax" That Won't Leave You Headless (Probably)
Living the dream in Denver? Awesome! But before you spend all your hard-earned cash on craft beer and mountain views, there's a tiny detail you should know about: the Denver Occupational Privilege Tax (OPT). Don't worry, it's not some medieval torture device. It's more like a...well, a tax. But a tax with a fun nickname – the "head tax".
 |
| What is Denver Occupational Privilege Tax |
Head Tax? Does Denver Have a King Now?
Nope, no royalty here (unless you count the Broncos mascot, which would be a fair argument). The "head tax" refers to the fact that this tax is levied on, well, heads – or more accurately, people who work in Denver. Buckle up, because we're about to dissect this strange and wonderful beast.
The Breakdown: Who Pays and How Much?
The Denver OPT has two parts:
- Employee OPT: This is the one that comes directly out of your paycheck ($5.75 per month – we know, it's not gonna break the bank). But hey, at least you can say you're contributing to the city's...uh...castle fund?
- Business OPT: This one's on your employer, who coughs up $4.00 per month for each employee who hits the $500 monthly earnings threshold within Denver city limits.
Important Note: You don't have to live in Denver or for your employer to be headquartered there. As long as you're working within the city limits and earning enough to qualify, you're part of the OPT club.
Tip: Break down complex paragraphs step by step.
So, What Does This Tax Pay For, Anyway?
Great question! The Denver OPT helps fund all sorts of cool stuff in the city, like parks, libraries, and maybe even a few strategically placed scratching posts for those aforementioned royal mascots (just kidding...maybe).
Think of it as a tiny investment in making Denver an even more awesome place to live, work, and play.
But Wait, There's More!
The Denver OPT is a treasure trove of fascinating (or maybe just slightly confusing) details. But fear not, intrepid taxpayer, we've got you covered.
Tip: Look for examples to make points easier to grasp.
- Exemptions: There are a few exemptions, like if you're working for a religious organization or the government. You can find the full list on the City and County of Denver website (
https://denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Department-of-Finance/Our-Divisions/Treasury/Business-Tax-Information - Filing: Employers handle the filing and payment of the OPT. You, as the employee, generally don't need to worry about it (besides, who needs more tax paperwork, right?).
Frequently Asked Questions (FAQ) about the Denver OPT:
How to Avoid Paying the Denver OPT?
Unfortunately, there's no escaping the OPT unless you take your talents (and your paycheck) elsewhere. But hey, at least the views are worth it!
How to Find Out If I Owe Denver OPT?
Tip: Take mental snapshots of important details.
 |
Your employer will handle this. They'll withhold the employee portion of the tax from your paycheck if you meet the earnings threshold.
How to File for a Denver OPT Exemption?
If you think you might qualify for an exemption, contact the Denver Department of Finance (
QuickTip: Stop scrolling if you find value.
How to Pay Denver OPT If I'm Self-Employed?
If you're your own boss and hit the earnings threshold, you'll need to file and pay the OPT yourself. The Denver Department of Finance website (
How to Learn More About the Denver OPT?
The City and County of Denver website (
So there you have it! The Denver OPT, a tax that might seem strange at first, but ultimately helps keep Denver the vibrant city we all know and love. Now go forth, conquer your workday, and enjoy that craft beer (responsibly, of course). You've earned it (and slightly contributed to it)!
 |
