CO · Tax Year 2026
How Colorado taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
$20,000 ages 55–64; $24,000 age 65+; military up to $15,000 under age 55
Social Security fully deductible at 65+; also ages 55–64 with AGI up to $75,000 single/$95,000 joint
Additional Notes
Social Security subtraction generally uses the pension cap first; SB25-136 cap-removal proposal died
Does Colorado tax Social Security benefits?
It depends. Colorado offers partial exemption for Social Security — eligibility is typically income-based or age-based. See the details above.
Does Colorado tax pension income?
Partially. Colorado provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does Colorado tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in Colorado. However, exclusions or credits may apply depending on your age and income — review the details above.
Is Colorado a tax-friendly state for retirees?
It depends on your income mix. Colorado offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official Colorado state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
Related for Colorado
Data reflects tax year 2026 rules sourced from official Colorado state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.