Colorado

Sales Tax

  • Statewide: 2.9%
  • Counties can levy sales tax of no more than 8.3%.
  • Current average sales tax (with local taxes included): 6.274%
  • Common Exceptions at State Level:
    • Prescription Medicine: Exempt
    • Unprepared Foods: Exempt
  • Gasoline Tax: 40.40 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 44.90 cents/gallon (Includes all state, local, and federal taxes)
  • Cigarette Tax: $1.94/pack of 20

 

Personal Income Tax

  • Personal Income Tax Rate Range: 4.55%
  • Standard deduction: Single Filing Status: $12,550. Married Filing Jointly: $25,100
  • Personal Exemption Allowance: None
  • Itemized Deductions Allowed? Yes. Subject to limitations.
  • Retirement Income
    • Social Security: Up to $24,000 of retirement income can be excluded*
    • IRAs: Up to $24,000 of retirement income can be excluded*
    • 401Ks/Defined contribution employer retirement plans: Up to $24,000 of retirement income can be excluded*
    • Private pensions: Up to $24,000 of retirement income can be excluded*
    • Public Pensions: Up to $24,000 of retirement income can be excluded*
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income. Exceptions available.
    • Military Retirement Pay: Up to $24,000 of retirement income can be excluded*
    • Military Disability Pay: Exempt to the extent excluded from federal AGI
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Up to $24,000 of retirement income can be excluded*
Income tax comments: *Retirees under 55 can exclude $10,000 from retirement income; age 55-64 can exclude $20,000; 65 and over can exclude $24,000. State allows county- and city-level income tax.

 

Property Tax

  • Local municipalities average .51% of the property's assessed value.
  • Calculation of assessed value: 7.2% of fair market value; revalued every odd-numbered year.
  • Relief programs for:
    • Disabled Veterans or 65 and over: 50% of first $200,000 of assessed value exempt if meet requirements.
  • Personal Property Tax: Yes, rates and exemptions vary. 65 and over, veterans, and the disabled may be able to defer taxes. A property tax work off program is available to taxpayers.

 

Inheritance & Estate Taxes: None

 

Department of Revenue website: www.colorado.gov/revenueonline/

More Financial Guidance From MOAA 

Premium and Life members can consult our financial staff for education and consumer advice.

 

Looking to get more out of your membership? MOAA has more than 400 chapters around the country. Get involved in your community by finding the one closest to you and joining today! 


Financial Resources Join a Chapter

Search