Colorado retirement taxes at a glance
| Income | Taxed? | How |
|---|---|---|
| Social Security | Partly | Fully subtracted at 65. At 55 to 64, fully subtracted at federal AGI up to $75,000 single or $95,000 joint; above that, up to $20,000. Under 55, taxed. |
| IRA withdrawals | Partly | The pension subtraction covers IRA withdrawals ($24,000 at 65, $20,000 at 55 to 64, per person), less the Social Security subtracted. Early withdrawals do not qualify. |
| 401(k), 403(b) and 457(b) | Partly | Same subtraction. |
| Private pensions | Partly | Same subtraction. |
| Government pensions | Partly | PERA and federal pensions use the same subtraction; no separate exemption. |
| Military retirement pay | Partly | Under 55, up to $15,000 of military retirement pay subtracted (2022 to 2028); from 55 it uses the pension subtraction. |
| Roth conversions and Roth withdrawals | Partly | Conversions are taxable; qualified Roth withdrawals are not. |
What retirees pay in Colorado
Five households, priced on the same 2026 tax engine Killion’s planner uses: Social Security plus withdrawals from a traditional IRA, the standard deduction, and every age break the state and federal returns give. Estimates for planning, not tax advice.
| Household | Social Security | IRA withdrawals | Colorado tax | Federal tax |
|---|---|---|---|---|
| Single, 67 | $24,000 | $20,000 | $0 (0.0%) | $0 |
| Single, 67 | $30,000 | $50,000 | $1,139 (1.4%) | $6,016 |
| Married, both 67 | $42,000 | $40,000 | $0 (0.0%) | $1,295 |
| Married, both 67 | $50,000 | $100,000 | $2,068 (1.4%) | $10,904 |
| Single, 62, before Social Security | $0 | $60,000 | $1,052 (1.8%) | $5,020 |
Colorado compared with other states
The same two households in each state we cover. In the nine states with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming) both pay $0 of state tax.
| State | Married, 67: $42,000 Social Security, $40,000 IRA | Single, 67: $30,000 Social Security, $50,000 IRA |
|---|---|---|
| Arizona | $0 | $646 |
| California | $0 | $815 |
| Colorado | $0 | $1,139 |
| Maryland | $0 | $964 |
| Massachusetts | $1,490 | $2,245 |
| Michigan | $0 | $0 |
| North Carolina | $579 | $1,486 |
| Ohio | $347 | $682 |
| Pennsylvania | $0 | $0 |
| Virginia | $0 | $1,325 |
2026 rates and senior breaks
Colorado’s rate: Flat 4.4%, on federal taxable income.
- Pension and Social Security subtractions by age, per person.
- Colorado starts from federal taxable income, so the federal standard deduction, the 65-and-older amount and the senior deduction already count.
Local taxes: No local income tax on retirement income.
What people get wrong about Colorado
- At 65 the Social Security subtraction and the $24,000 pension subtraction share one cap: with $24,000 or more of taxable benefits, no IRA or pension dollars come off.
- A November 2026 ballot measure (Amendment 87) would replace the flat rate from 2027 if it passes.
Tax on a 401(k) withdrawal in Colorado
A single filer aged 60 with no other income, taking one withdrawal in 2026:
| Withdrawal | Federal | Colorado |
|---|---|---|
| Tax on a $25,000 401(k) withdrawal | $890 | $0 |
| Tax on a $50,000 401(k) withdrawal | $3,820 | $612 |
| Tax on a $100,000 401(k) withdrawal | $13,170 | $2,812 |
| Tax on a $200,000 401(k) withdrawal | $36,734 | $7,212 |
Social Security across all fifty states, including the eight that can tax it, is on which states tax Social Security. Required minimum distributions add to this income from 73: see the RMD on $1 million.
The retirement tax calculator, set to Colorado
Set to a married couple, both 67, with $42,000 of Social Security and $40,000 of IRA withdrawals. Change any input, including the state.
On $82,000 of income, the 2026 tax is about $1,295: $1,295 federal and $0 Colorado. $20,450 of your Social Security is taxable. The next $1,000 you withdraw from an IRA would cost $185 in tax. Colorado is one of the states that can tax Social Security.
This year’s income sets your Medicare premiums for 2028. See your IRMAA tier.
Figures checked on against Colorado DOR, Book 104 (2025) individual income tax guide (PDF) and Colorado DOR, Social Security, pensions and annuities.