Sales Tax
- Statewide: 2.9%
- Counties can levy sales tax of no more than 8.3%.
- Current average sales tax (with local taxes included): 7.1%
- Common Exceptions at State Level:
- Prescription Medicine: Exempt
- Unprepared Foods: Exempt
- Gasoline Tax: 46.58 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 55.08 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
- Personal Income Tax Rate Range: 4.4%
- Standard deduction: Single Filing Status: $15,000.
- Personal Exemption Allowance: None
- Itemized Deductions Allowed? Yes. Subject to limitations.
- Retirement Income
- Social Security: Excluded if 65 and over. Age 55 to 64 excluded if Adjusted Gross Income is less than $75,000 ($95,000 if married filing jointly).
- IRAs: Taxable at ordinary income tax rates.*
- 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates.*
- Private pensions: Taxable at ordinary income tax rates.*
- Public Pensions: Taxable at ordinary income tax rates.*
- Military Pay
- Active Duty Pay: Taxable to the extent included in federal AGI. Exceptions available.
- Military Retirement Pay: Up to $15,000 can be excluded if under 55*
- Military Disability Pay: Exempt to the extent excluded from federal AGI
- VA Disability Dependency & Indemnity Compensation Benefits: Exempt
- SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates*
*Ages 55-64 can exclude up to $20,000 from retirement income; age 65 and over can exclude up to $24,000.
Income Tax Comments: State allows county- and city-level income tax.
Property Tax
- Local municipalities average .49% 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. Deferral programs available.
- Personal Property Tax: Yes, rates and exemptions vary. 65 and over and active military 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/
