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Oil & Gas Severance Tax | Individual Filers

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Anyone who receives income from oil or gas produced in Colorado must file a severance tax return. If you receive oil and gas income from Colorado sources, you must also complete and file a Colorado state income tax return. Individuals pay severance tax once a year on or before April 15th, therefore, individuals are not required to make estimated severance tax payments. Visit the How to File page for more information on filing a severance tax return.

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Exception

It is not necessary to file a severance tax return if you meet both of the following conditions:

  1. The total gross oil and gas withholding on form(s) DR 0021W for the calendar year is less than $250, AND
  2. The producer has withheld sufficiently from royalty or production payments to cover the severance tax liability.