Updated July 25, 2026. Quick answer (2026): Moving from Colorado to Arizona in retirement, withdrawals stay taxable, but the top rate falls from 4.4% to 2.5%. Four separate taxes change when you move — state income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Most comparisons only price the first one.
Colorado vs Arizona: every tax that changes
| What changes | Colorado (leaving) | Arizona (arriving) |
|---|---|---|
| State income tax | flat 4.4% | flat 2.5% |
| 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. | not taxed (subtracted from Arizona gross income) |
| 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. | Private pensions, 401(k), and IRA distributions fully taxable at 2.5%. |
| Estate tax | none | none |
| Inheritance tax | none | none |
| Probate fee model | reasonable-fee | 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) | ~$306 initial probate filing (Maricopa County Clerk of Superior Court); varies modestly by county |
| 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. | A.R.S. §14-3971 as amended by HB 2116 (signed March 31, 2025): personal property up to $200,000 and real property up to $300,000 (both net of liens/encumbrances) — up from $75,000/$100,000. Sources conflict on exact 2025 effective date (June 30 vs Sept 26, 2025), but new limits are fully in effect as of mid-2026. Waits: 30 days (personal property), 6 months (real property). |
Every cell is quoted from our statute-cited 51-jurisdiction dataset. Download the full dataset as CSV.
1. What changes on your annual tax bill
Both states tax retirement withdrawals, so this is a rate change rather than an exemption. Colorado runs flat 4.4% against Arizona at flat 2.5% — a top-rate difference of roughly 1.9 percentage points. On $100,000 of withdrawals that is on the order of $1,900 a year at the top of the schedule, before any exclusion either state allows.
Colorado: 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. Arizona: Private pensions, 401(k), and IRA distributions fully taxable at 2.5%.
2. What changes at death: state estate tax
Neither state levies an estate tax. Colorado: none Arizona: none Only the federal estate tax applies.
3. What changes at death: state inheritance tax
Neither state levies an inheritance tax. Colorado: none Arizona: none
4. The one nobody prices: what probate costs your heirs
Colorado uses a reasonable-fee fee model (UPC state: reasonable compensation (C.R.S. §15-12-719); no percentage schedule.); Arizona uses a reasonable-fee model (UPC state: reasonable compensation for PR and attorneys (A.R.S. §14-3719); no percentage schedule.). Filing fees — Colorado: $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) Arizona: ~$306 initial probate filing (Maricopa County Clerk of Superior Court); varies modestly by county
Full detail: probate cost by state and small-estate limits by state.
Probate cost in each state, specifically
Colorado uses a “reasonable fee” standard with no schedule, and its small-estate route does not clear a solely owned house. Arizona uses a “reasonable fee” standard with no schedule, and its small-estate route can reach real property under a statutory cap. The two states differ on that question, which is exactly the kind of thing a move changes. Full figures with the governing statute, the court filing fee and the small-estate threshold: Colorado probate cost and Arizona probate cost.
Four taxes, two states, one order of operations
Everything above changes together: what Colorado stops taking on withdrawals, what Arizona does not take at death, and what probate costs in each. The order you do things in — when you establish domicile, when you convert, when you retitle property — changes the total, and some of it cannot be undone afterwards. If a move is genuinely on the table, here is what to look for in an advisor who knows both Colorado and Arizona. If you would rather price it yourself first, the two-state comparison tool is free and asks for no email.
Will Colorado still tax me after I move to Arizona?
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 a mailing address. A departing state can and does audit residency. Days present, voter registration, driver’s licence, where your doctors and advisers are, and where you keep what you value all count.
- A Roth conversion is taxed where you live in the year you convert. Sequencing a conversion after establishing the new domicile is often worth more than the annual saving — see how all 51 jurisdictions tax Roth conversions.
Full state detail
Every figure above is summarized. The complete statute-cited breakdown for each state: Colorado retirement taxes and Arizona retirement taxes. To compare any other pair, start at the retirement tax relocation hub.
Widen the comparison
This page prices one corridor. To see every destination Colorado retirees consider and every origin state moving to Arizona, start there instead. For any pair not covered, the retirement tax comparison tool runs all 51 jurisdictions, and the probate cost calculator works out what settling the estate costs in each.
Talking this through
Relocation timing, Roth conversion sequencing and estate exposure interact, and the order you do them in changes the total. If you want a second opinion, understand what it should cost first — see our advisor cost guide.
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Cite or share this comparison
Suggested citation: Clear Money Guide, “Colorado to Arizona Retirement Taxes (2026),” statute-cited; clearmoneyguide.com/colorado-to-arizona-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
- A.R.S. § 43-1022
- AZDOR: Identifying Other Taxable Income / Military Tax Filing
- Colo. Rev. Stat. §15-12-719
- Colo. Rev. Stat. §15-12-1201
- Colo. Rev. Stat. §13-32-102
- Ariz. Rev. Stat. §14-3719
- Ariz. Rev. Stat. §14-3971 (HB 2116, 2025)
Methodology: every figure is quoted from Clear Money Guide’s statute-cited 51-jurisdiction datasets, compiled from state statutes, session laws and revenue-department publications and adversarially verified in July 2026. Nothing here is personalized tax or legal advice. Confirm your own facts with a qualified adviser before you move.