COLORADO RETIREMENT INCOME TAX · TAX YEAR 2026
Does Colorado tax Social Security and retirement income?
Colorado subtracts all taxable benefits from age 65, and from 55 to 64 when federal AGI is $75,000 or less ($95,000 joint), and up to $20,000 of them at higher incomes. Colorado subtracts up to $24,000 per person of pension and IRA income at 65 ($20,000 from 55), less the Social Security that person subtracts, and taxes the rest. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays no Colorado income tax for 2026.
Your estimate
- Colorado income tax
- $0.00
- Federal income tax
- $1,810.00
- Total income tax
- $1,810.00
Subtracted from Colorado income
- Social Security
- $11,300.00
- Pension and annuity subtraction
- $12,700.00
Survivor benefits under 55, the PERA/DPSRS 1984-1986 contribution subtraction and railroad retirement are not modeled.
Colorado tax at different retirement incomes
Colorado income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $513 | $0 |
| $60,000 | $1,433 | $242 |
| $100,000 | $3,299 | $2,002 |
| $150,000 | $5,631 | $4,382 |
Does Colorado tax Social Security?
Partly. Taxpayers 65 or older can subtract all Social Security included in federal taxable income. Those 55 to 64 can subtract all of it if federal AGI is $75,000 or less for single filers or $95,000 or less for joint filers, and up to $20,000 otherwise. Younger taxpayers can subtract only benefits received because of another person's death, up to $20,000.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Colorado taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Colorado taxes none of it.
Does Colorado tax pensions?
Partly. Private and government pensions share one subtraction per person: up to $24,000 at 65 or older and $20,000 from 55 to 64, reduced dollar for dollar by the Social Security that person subtracts. Each spouse figures it separately, and one spouse's unused amount cannot go to the other. There is no income limit. Military retirees under 55 can subtract up to $15,000 of military retirement pay.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension Colorado exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $2,700 | $0 |
| Colorado government | $2,700 | $0 |
| Federal civil service | $2,700 | $0 |
| Military | $2,700 | $0 |
Does Colorado tax IRA and 401(k) withdrawals?
Partly. IRA and 401(k) withdrawals share the pension subtraction. Withdrawals that carry the federal early-withdrawal penalty do not qualify; the calculator counts IRA income from age 60. Qualified Roth IRA withdrawals are not taxed.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays no Colorado income tax for 2026.
At what age do retirement tax breaks start in Colorado?
At 55. From 55 to 64, each person can subtract up to $20,000 of pension and IRA income, and all taxable Social Security when federal AGI is $75,000 or less ($95,000 joint). At 65 the pension subtraction rises to $24,000 and all taxable Social Security is subtracted at any income.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 54 | $1,109 | $2,020 |
| 55Social Security, Pension and annuity subtraction | $229 | $521 |
| 65Pension and annuity subtraction | $0 | $0 |
What the calculator leaves out
Survivor benefits under 55, the PERA/DPSRS 1984-1986 contribution subtraction and railroad retirement are not modeled.
- Colorado starts from federal taxable income, so the federal 65+ standard deduction and the $6,000 senior deduction flow through; Colorado's treatment of the senior deduction is not confirmed.
- IRA and 401(k) distributions before 59 1/2 carry the federal penalty and do not qualify; the calculator counts them from age 60 by December 31.
- Joint taxable Social Security is split by each spouse's share of benefits.
The calculator uses Colorado rules from the 2025 forms and instructions, the latest published.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.