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Retirement planning for Colorado.

Flat 4.4%. Run your projection. free

Run your projection — free

Colorado at a glance (2026)

Top combined rate

41.4%

State tax model

Flat 4.4%

Standard deduction

$16,100

RMD start age

73

No state income tax

Colorado does not levy a state income tax. Your 401(k)/IRA withdrawals, Roth conversions, Social Security, and investment gains are taxed only at federal rates (10-37%).

What this means for your retirement

Colorado retirement planning insights

Colorado's flat 4.4% rate is moderate, but the state offers generous retirement income deductions — $20,000 for ages 55-64 and $24,000 for 65+ — that effectively exempt a significant portion of retirement income

Colorado does not tax Social Security for most retirees (full subtraction for those 65+, partial for 55-64) — combined with the retirement income deduction, the effective state tax rate on retirement income is often near zero

The combination of flat rate + retirement deductions means Colorado's effective rate for a typical retiree withdrawing $60K from retirement accounts is closer to 2-3% than the headline 4.4%

Colorado's TABOR amendment limits state tax increases by referendum — property taxes are also constitutionally limited, providing long-term tax predictability for retirement planning

Frequently asked questions

Does Colorado tax retirement income?

Partially. Colorado offers a $20,000 deduction on retirement income (ages 55-64) that increases to $24,000 at age 65+. Social Security is fully deductible for 65+. After these deductions, many retirees pay little to no state income tax on the first ~$24K of retirement distributions.

Is Colorado's retirement income deduction worth the move?

For moderate-income retirees, the $24K deduction effectively zeroes out state tax on the first $24K of 401(k)/IRA withdrawals. Combined with the SS deduction, a retiree living on $50K/year in retirement income might pay only 4.4% on ~$26K — about $1,144/year in state tax. Competitive with many "tax-friendly" states.

See your Colorado numbers.

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