Updated July 25, 2026. Quick answer (2026): If you are weighing a move out of Colorado in retirement, the entire case for leaving Colorado is income tax — a top rate of 4.4% on withdrawals. Colorado levies no estate tax and no inheritance tax, so there is no ‘death tax’ to escape. Four taxes change when you move — income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. This page prices all four for Colorado, then links a worked comparison for each destination.
What Colorado actually charges a retiree
| Tax | Colorado position, 2026 |
|---|---|
| State income tax | flat 4.4% |
| Social Security | Taxed only above deductions: age 65+ may subtract 100% of federally taxed Social Security; age 55-64 may subtract 100% if AGI ≤ $75,000 (single) / $95,000 (joint) (TY2025+), otherwise SS counts within the $20,000 pension/annuity subtraction cap. |
| Pension / 401(k) / IRA | Pension/annuity subtraction (includes pensions, 401(k), IRA distributions, and taxable SS within cap): up to $20,000 (age 55-64) or $24,000 (65+) per taxpayer. |
| Estate tax | none |
| Inheritance tax | none |
| Probate fee model | reasonable-fee |
| Probate filing fee | $199 to open a decedent’s estate (informal or formal), ~$229 with equal justice surcharge — statewide per C.R.S. §13-32-102 and Colorado Judicial fee schedule (JDF 1) |
| Small-estate limit | Collection of personal property by affidavit, C.R.S. §15-12-1201 — indexed annually by year of death: $80,000 (2023-2024 deaths), $86,000 (2025 deaths per official JDF 999 form, rev. April 2026); 2026 year-of-death figure not confirmed this session. Personal property only, 10-day wait, no court filing required. |
The mistake Colorado retirees make
Because Colorado has a high headline income-tax rate, people assume it also has a punishing estate tax. It does not — Colorado levies neither an estate tax nor an inheritance tax. So the saving from moving is real but single-sourced: it is income tax on withdrawals and nothing else. If you are moving to a state that does levy a death tax, you can end up worse off overall.
Where Colorado retirees go, and what each move is worth
Destinations below are drawn from documented retiree migration. Each links a worked, statute-cited comparison of all four taxes for that specific pair.
- Colorado to Arizona — top rate falls; compare the death taxes too
- Colorado to Texas — stop paying income tax on withdrawals
- Colorado to Florida — stop paying income tax on withdrawals
Getting the sequence right
Leaving Colorado cleanly is a sequencing problem as much as a tax one: domicile tests, what happens to property you keep behind, and the order of conversions and sales. See finding an advisor for a cross-state move for what to look for and the five questions to ask first.
Will Colorado still tax me after I move away?
Not on your retirement withdrawals, once you genuinely change domicile — but that is a harder test than a change of address, and what you leave behind stays in reach.
- Domicile is a test, not an address. Colorado can audit a departing resident. Days present, licence, registrations, where your advisers are and where you keep what you value all count.
- Property left behind stays reachable. Keeping a home in Colorado can keep part of your estate inside Colorado rules.
- Sequence any Roth conversion. It is taxed where you are domiciled in the year you convert — see how all 51 jurisdictions tax Roth conversions.
Full Colorado detail: Colorado retirement taxes. All corridors: retirement tax relocation hub.
Getting the order right
Move timing, conversion sequencing and estate exposure interact, and the order changes the total. Know what advice should cost before you buy it — see our advisor cost guide.
Disclosure: the button above routes to an advertising partner and Clear Money Guide may earn a referral fee. See our Affiliate Disclosure.
Cite or share this guide
Suggested citation: Clear Money Guide, “Leaving Colorado in Retirement: the 2026 Tax Position,” statute-cited; clearmoneyguide.com/leaving-colorado-retirement-taxes/. Free to cite with attribution. Download the full dataset as CSV, or contact contact@clearmoneyguide.com for custom cuts.
Primary sources
- C.R.S. § 39-22-104(4)(f), (g), (y)
- CDOR Income Tax Topics: Social Security, Pensions, and Annuities
- Colo. Rev. Stat. §15-12-719
- Colo. Rev. Stat. §15-12-1201
- Colo. Rev. Stat. §13-32-102