Does Colorado Tax Social Security?
Colorado taxes Social Security only for younger or higher-income recipients: residents 65+ deduct 100% of federally taxed benefits, and 55–64-year-olds can too if AGI is $75,000 or less ($95,000 married filing jointly).
Colorado is one of only 8 states that tax Social Security benefits in 2026.
State Tax Rate
4.40% flat
Who's Exempt
Fully deductible at 65+; 55–64 within income limits
Who is exempt from Colorado's Social Security tax?
Available Exemptions & Deductions
- Age 65+: deduct 100% of Social Security benefits included in federal taxable income — no income limit.
- Age 55–64: deduct 100% of benefits if federal AGI is $75,000 or less (single) / $95,000 or less (married filing jointly).
- Age 55–64 above those income limits: benefits count toward the $20,000 pension/annuity subtraction cap.
Key facts about Colorado and Social Security
Colorado applies a flat 4.40% income tax rate to taxable income.
Most Colorado retirees 65+ pay no state tax on Social Security at all.
The 55–64 full deduction (within AGI limits) is recent — many one-year-old guides still show the old $20,000 cap for everyone under 65.
Tax-smart strategy for Colorado residents
If you are 55–64 and near the AGI cliff, the timing of IRA withdrawals and capital gains can decide whether your entire Social Security benefit is state-tax-free. Modeling claiming age and withdrawal order together matters more here than in almost any other state.
Frequently Asked Questions
About Colorado Social Security tax
The other states that tax Social Security in 2026
Get Your Personalized Colorado Analysis
Our engine factors in Colorado's exemptions and thresholds to show your true after-tax Social Security benefit.