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Retire in Colorado: 2026 Tax & Cost of Living Guide

Flat 4.4% income tax with generous retirement income exclusions at age 65+ that effectively eliminate state tax on most retiree income.

State income tax

Flat 4.40%

Social Security

Taxed

Estate tax

None

Property tax

0.51%

How Colorado Taxes Retirement Income

Social Security
SS income taxed for residents under 65 only; fully exempt at 65+
Public pensions (state/federal)
Taxed
Private pensions
Taxed
401(k) / IRA withdrawals
Taxed

Exemption / exclusion

$20,000 pension/retirement income exclusion (age 55-64), $24,000 (age 65+)

What Would You Pay in State Income Tax?

Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):

Annual Retirement IncomeEstimated State TaxEffective Rate
$50,000$2,2004.4%
$100,000$4,4004.4%
$200,000$8,8004.4%

Top Cities for Retirees in Colorado

Denver

$2,828/month estimated cost of living

States With No Income Tax

Alaska

Florida

Nevada

New Hampshire

South Dakota

Tennessee

Compare Against Other States

All 50 US States + DC

Ranked by tax-friendliness for retirees. Grouped by income-tax type.

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Retirement Methodology Calculators

How much do the big names actually say you need? See each guru's assumed return and withdrawal rate, side by side with academic defaults.

Dave Ramsey

12% / 8%

Bill Bengen

4% rule

Bogleheads

7% / 4%

FIRE Calculator

See how much you need to retire — in Colorado or anywhere else.

Safe Withdrawal Rate

Model your retirement paycheck with real historical data.

Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.