Colorado
Overall Rating for Taxes on Retirees: Mixed tax picture
State Sales Tax: 2.9% state levy. Localities can add as much as 8.3%, and the average combined rate is 7.52%, according to the Tax Foundation.
State Income Tax Range: All Colorado residents who have federal taxable income pay a flat rate of 4.63%. Taxpayers are also subject to a state alternative minimum tax.
State Taxes on Social Security: For beneficiaries younger than 65, up to $20,000 of Social Security benefits can be excluded, along with other retirement income. Those 65 and older can exclude benefits and other retirement income up to $24,000. Also, Social Security income not taxed by the federal government is not added back to adjusted gross income for state income tax purposes.
Property Taxes: The median property tax on Colorado’s median home value of $264,600 is $1,516.
