Colorado Retirement Tax Calculator 2026
$24,000 subtraction (65+), 4.4% flat rate, Social Security partially taxed. FAMLI does not apply to retirement income.
How to Use This Calculator
Tab "Tax on My Retirement Income"
Enter your annual Social Security benefit, pension income, 401(k)/IRA withdrawals, and any other income. Select your filing status and age group. The calculator applies Colorado's retirement income subtraction ($24,000 for age 65+ or $20,000 for under 65), then taxes the remainder at the 4.4% flat rate. FAMLI premiums do not apply to retirement income.
Tab "What's Exempt?"
See a clear breakdown of how Colorado treats each type of retirement income. Social Security is partially taxed (CO follows federal rules but the subtraction covers most retirees). Pension and 401(k)/IRA income is taxed at 4.4% minus the subtraction. Military retirement pay is included in the subtraction. FAMLI only applies to wages from active employment.
Tab "Compare States"
Compare Colorado's retirement tax burden against Florida (no tax), Arizona (2.5% flat), North Carolina (4.5% flat), and California (progressive rates). Visual bar charts show how much you would pay in each state on your specific retirement income.
Colorado Retirement Tax Rules (2026)
Age 65 or older: $24,000 per person
Under 65: $20,000 per person
Married Filing Jointly (both 65+): $48,000 combined
What counts toward the subtraction:
Pension income, 401(k)/IRA withdrawals, Social Security benefits, military retirement pay, and other qualifying retirement income.
Social Security in Colorado:
Colorado is one of about 11 states that taxes Social Security. CO follows the federal rules for determining the taxable portion of SS benefits, but offers the retirement subtraction which covers most or all SS for typical retirees.
Colorado Tax Rate:
Flat 4.4% on taxable income after the retirement subtraction and standard deduction ($14,600 single / $29,200 MFJ).
FAMLI:
Does NOT apply to retirement income. FAMLI's 0.45% employee premium is charged only on wages from active employment.
Sources: C.R.S. 39-22-104 (flat rate), C.R.S. 39-22-104(4)(f) (retirement subtraction), C.R.S. 8-13.3-507 (FAMLI). Standard deduction conforms to federal per C.R.S. 39-22-104(3).
Example
Linda โ Retired Teacher in Colorado Springs, Age 68
Filing Single. $65,000 total retirement income: $30,000 Social Security + $20,000 pension + $15,000 from a 401(k).
With the $24,000 subtraction plus the $14,600 standard deduction, Linda's $35,000 in pension/401(k) income is fully covered. Her Social Security portion follows federal taxation rules at the state level. For many retirees at this income level, Colorado's effective tax rate is near zero. A retiree with higher non-SS income (say $60,000 in pension/401(k)) would pay 4.4% on the amount exceeding the subtraction and standard deduction: ($60,000 - $24,000 - $14,600) = $21,400 x 4.4% = $942/year.