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): 7.04%
  • Common Exceptions at State Level:
    • Prescription Medicine: Exempt
    • Unprepared Foods: Exempt
  • Gasoline Tax: 47.64 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 52.45 cents/gallon (Includes all state, local, and federal taxes)

 

Personal Income Tax

  • Personal Income Tax Rate Range: 4.4%
  • Standard deduction: Single Filing Status: $14,600.  
  • Personal Exemption Allowance: None
  • Itemized Deductions Allowed? Yes. Subject to limitations.
  • Retirement Income
    • Social Security: Excluded if 65 and over. May be partially taxable if under 65.
    • 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 Adjusted Gross Income. 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*
* Income tax comments: Ages 55-64 can exclude up to $20,000 from retirement income; age 65 and over can exclude up to $24,000. 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/

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