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Colorado Retirement Tax Calculator for Social Security and Pensions (2026)

Colorado subtracts federally taxed Social Security in full at 65 or older, and pension and annuity income shares a $24,000 per-person cap with it. From 55 to 64 the cap is $20,000, though Social Security is still subtracted in full when AGI is $75,000 or less ($95,000 joint). Whatever remains is taxed at a flat 4.4%.

Checked against sources 2 official sources linked How we verify

Colorado resident retirement worksheet

Use the year income is received, not the filing year. Later years use a separately approved assessment until the next return rules are verified.

Full-year resident; ordinary positive income; eligible pension / IRA amounts after basis and any early-distribution review. Death benefits, special military or PERA adjustments, AMT, credit recapture and credits need separate preparation.

AGI determines the age-55–64 benefit threshold. It is different from taxable income.

After approved federal deductions; do not deduct them again in Colorado.

The included benefit amount from the federal worksheet, not total cash benefits. Joint allocation uses each owner’s gross benefits.

Used to allocate the household federally taxable benefit amount.

Prepared eligible amount included federally, after contribution basis. Omit qualified Roth cash and ineligible premature distributions.

Retain the spouse’s actual ownership; unused allowance is not transferred.

Prepared qualifying amount for this spouse only.

Include required additions, such as an applicable federal deduction addback. A known zero is different from a blank.

Exclude the Social Security and ordinary pension subtractions calculated here; avoid claiming the same income twice.

Colorado · 2026 estimate

Waiting on a figure

Colorado ordinary tax before credits —
Colorado taxable income
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Total retirement subtraction
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Your Social Security subtraction
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Your pension / IRA subtraction
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Spouse’s Social Security subtraction
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Spouse’s pension / IRA subtraction
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Calculation scopeConfirm the resident scope and prepared amounts

Illustrative defaults. Enter approved taxable amounts and confirm eligibility. The result covers the displayed worksheet conditions; a complete return may require other income, adjustments, deductions or credits.

Current-year rates and primary-source eligibility reviewed October 1, 2026. Use the federal tool separately; these inputs do not prepare a complete federal or state return.

Reviewed October 12, 2026. Social Security can consume Colorado pension-subtraction room

What Colorado taxes in retirement

Partly taxed: limits by age, plan, owner or income apply. Military retirement is covered in the guide. How these labels work.

Colorado retirement tax figures and sources

Colorado rules that set a retiree’s 2026 taxable income
RuleColorado figureEffectivePrimary source
Flat income-tax rate4.4% of federal taxable income after Colorado’s additions and subtractionsTax years 2022 and later; § 39-22-627 can set a lower temporary rate in a TABOR refund yearC.R.S. § 39-22-104(1.7)(c)
Pensions and annuities at 55 or olderSubtracted from any source to the extent included in federal AGI, within the per-person cap belowTax years 1989 and laterC.R.S. § 39-22-104(4)(f)(I)
Cap at 65 or older$24,000 per person; when that person’s federally taxed Social Security is larger, the cap rises to the full benefit amountBenefit rule for tax years 2022 and laterC.R.S. § 39-22-104(4)(f)(III)(B)
Cap from 55 to 64$20,000 per person; federally taxed Social Security still comes off in full at AGI up to $75,000 (single) or $95,000 (joint)Benefit rule for tax years 2025 and laterC.R.S. § 39-22-104(4)(f)(III)(A)

Social Security can consume Colorado pension-subtraction room

Estimate Colorado retirement tax for 2026: owner-specific Social Security and pension subtractions, age 55 and 65 rules, and the 4.4% estimated rate.

Colorado starts with prepared federal taxable income, then applies required state additions and allowed subtractions. The calculator uses the 4.4% rate printed on the official 2026 estimated-payment worksheet. Its answer is ordinary tax before credits, alternative minimum tax and credit recapture; it is not a final-return balance or an estimated-payment schedule.

On a joint return, allocate the household federally taxable Social Security in proportion to each spouse’s gross benefits. At age 65 or older, the owner can subtract their entire included benefit amount. Ages 55–64 receive that treatment at federal AGI of $75,000 or less for single filing or $95,000 or less for joint filing. Above that threshold the benefit subtraction is capped at $20,000. This tool supports single and joint ordinary resident cases; other statuses and survivor exceptions require separate preparation.

Apply each person’s Social Security subtraction first. Their remaining ordinary pension room is the positive balance of $24,000 at age 65 or older, or $20,000 at ages 55–64, after that benefit subtraction. Unused room belongs to that owner. Enter only qualifying federally included pension or IRA amounts, with contribution basis and premature-distribution eligibility already resolved.

For example, two qualifying owners aged 70 and 67 have federal AGI of $100,000 and federal taxable income of $67,800. Their gross Social Security is $20,000 and $10,000, with $15,000 included federally. Allocation produces benefit subtractions of $10,000 and $5,000. Eligible pensions of $30,000 and $25,000 use the remaining $14,000 and $19,000 of pension room. The total retirement subtraction is $48,000. With no other modifications, Colorado taxable income is $19,800 and estimated ordinary tax is $871.20 before credits.

Confirm the displayed scope before the illustrative example becomes a calculated result. Review special military, railroad, survivor and PERA adjustments separately; enter any approved other modification without counting the same income twice. The federal worksheet remains independent, and the prepared state-liability option accepts the final liability after the full return’s adjustments and credits. A proposed future change is not used as an enacted allowance.

Prepare these Colorado records

Official Colorado source. January 2025 retirement guidance: continuing 2025-and-later benefit rules; 2026 DR 0104EP estimated rate, reviewed with January 2026 income-tax guidance.

Calculate the federal portion separately

Use the federal retirement-tax worksheet to prepare federally included benefits and ordinary income. Its federal deduction and rates do not replace the Colorado rules above.

Compare Colorado with nearby states

Wyoming, Nebraska, Kansas, Oklahoma, New Mexico and Utah border Colorado. Run each one’s worksheet with the same household figures before deciding where a move would leave you.

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Updated / verified · Retirement Income Tax Calculator Editorial Team