I checked my bank account on Friday morning like I always do. Coffee in one hand, phone in the other, the ritual of seeing what survived the week. And there it was: a $62 deposit from the Colorado Department of Revenue. TABOR refund. Last year it was $571. The year before, $800. This year? Sixty-two dollars. I stared at the number for a solid minute, convinced it was a typo.
It wasn't a typo. Colorado's Taxpayer's Bill of Rights refunds collapsed this year because the state hit the revenue cap and then immediately redirected the excess toward education and transportation projects. Plus, new tax credits for lower-income workers β the expanded Earned Income Tax Credit and the new Family Affordability Tax Credit β are eating into the refund pool. The result? The refund that Colorado voters have come to expect basically evaporated.
The Numbers: From Windfall to Pocket Change
Let's put this in perspective. In 2023, Colorado sent everyone a flat $800. In 2024, refunds ranged from $177 to $565 depending on income. In 2025, the average was around $180 to $200. In 2026? Single filers get between $20 and $62. Joint filers get double that β max $124. That's not a windfall. That's a tank of gas and a couple of movie tickets.
But it gets worse. The governor's office is trying to cancel $306.1 million in future TABOR refunds over the next two budget cycles, claiming the state "accidentally overpaid" refunds in 2025-26 due to federal budget changes. The Joint Budget Committee staff has warned this may not be legal. But regardless of the legal fight, the message is clear: don't count on TABOR.
What $800 Meant to Real Families
I help families budget for a living. I see their spreadsheets. I know what $800 meant to a Denver family. It was a month of groceries. It was two car payments. It was the difference between "we can handle this" and "we need to put it on the credit card." And now it's $62. That's a nice dinner. One dinner. For a family of four, that's pizza and soda with no tip.
I ran the numbers for a typical Denver family I work with. Two kids, $76,000 household income, renting a $2,300 apartment. Their budget was already stretched thin. The $800 TABOR refund was their "catch-up" money β the thing that paid off the credit card balance from Christmas, or covered the car repair they'd been putting off. Without it, they're carrying that debt into the next year. At 24% APR. The $62 refund doesn't even cover the interest for one month.
The State's Argument (And Why It Doesn't Help You)
The state says the money went to "critical priorities." Schools got $400 million. Roads got $200 million. The new Family Affordability Tax Credit helps lower-wage workers. I'm not against schools or roads or helping families. I have kids. I drive on I-25 every day. But the way TABOR was sold to voters was as a direct refund mechanism. You pay too much, you get it back. That was the deal. And now the deal has been quietly renegotiated.
The announcement came in March, after most people had already filed their taxes and made their summer plans. Too late to adjust. Too late to save. Just... surprise. I keep thinking about the family I mentioned β the dad looked tired. More tired than usual. "We had to put the car repair on the credit card," he said. "The transmission went. $2,800. We were going to use the TABOR refund for it. Now we're carrying a balance." I didn't have anything helpful to say. I just listened.
How to Adjust Your Budget Now
So now I'm telling my clients the same thing: build your budget without TABOR. Pretend it doesn't exist. If it comes back next year, great, it's a bonus. If it doesn't, you're not caught off guard. It's the financial equivalent of wearing a seatbelt.
Here's the adjustment plan:
Step 1: Remove the TABOR line from your budget entirely. If you had planned to use it for something specific β debt payoff, car repair, holiday savings β you need to find that money elsewhere or delay the expense.
Step 2: Build a $500 mini-emergency fund if you don't have one. In a world without TABOR, small shocks hit harder. $500 covers most car repairs, dental emergencies, or unexpected bills.
Step 3: Look at your subscriptions and discretionary spending. Most families I work with can find $100-$150 a month by canceling unused services, reducing dining out, or switching phone plans. That $1,200-$1,800 a year replaces the old TABOR refund.
Step 4: If you qualify, apply for the new Family Affordability Tax Credit or expanded Earned Income Tax Credit. These may offset some of the lost TABOR money, especially for lower-income families.
Frequently Asked Questions
Why did Colorado TABOR refunds drop to $62 in 2026?
Three main reasons: lower state revenue growth, new tax credits (EITC and Family Affordability Tax Credit) that redirect funds, and the homestead property tax refund taking up two-thirds of the surplus. The remaining pool for general TABOR refunds shrank to under $100 million, down from billions in previous years.
Will TABOR refunds come back in 2027 or 2028?
State economists predict Colorado may stay below the TABOR cap in 2026-27, meaning no refunds at all that year. Surpluses could return in 2027-28, but the governor's office has proposed canceling $306 million in future refunds. My advice: plan as if they're gone for good. Any refund you receive is a bonus, not a plan.
What is the Family Affordability Tax Credit?
Colorado created a new Family Affordability Tax Credit in 2025 to help lower- and middle-income families with children. It provides a refundable tax credit based on income and number of children. While it reduces the TABOR refund pool, it may actually put more money in your pocket if you qualify. Check with a tax preparer or the Colorado Department of Revenue.
How should I use my $62 TABOR refund?
Honestly? If you have high-interest credit card debt, put it toward that. At 24% APR, $62 saves you about $15 in interest over a year. If you're debt-free, add it to your emergency fund. Don't spend it on something discretionary β it's not enough to matter for fun, but it can matter for your margin.
Can I rely on TABOR refunds for my annual budget?
No. And you never should have. Relying on an unpredictable government refund to balance your budget is like relying on a bonus you might not get. The families who are hurting the most right now are the ones who built TABOR into their annual plan. Going forward, treat it as found money β nice if it comes, irrelevant if it doesn't.
The state will probably announce next year's TABOR refund in October. If history is any guide, it'll be somewhere between "nothing" and "barely worth the direct deposit notification." And families will adjust. They always do. They'll skip the vacation. They'll delay the dentist. They'll eat more rice and beans. They'll make it work because they have no other choice. But "making it work" is not the same as "thriving." And Colorado used to be a place where families could do more than just survive.
