- Statewide: 2.9%
- Counties can levy sales tax of no more than 8.3%.
- Current average sales tax (with local taxes included): 6.974%
- Common Exceptions at State Level:
- Prescription Medicine: Exempt
- Unprepared Foods: Exempt
- Gasoline Tax: 40.40 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 44.90 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Income tax comments: *Retirees 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.
- Personal Income Tax Rate Range: 4.55%
- Standard deduction: Single Filing Status: $12,950. Married Filing Jointly: $25,900
- Personal Exemption Allowance: None
- Itemized Deductions Allowed? Yes. Subject to limitations.
- Retirement Income
- Social Security: Up to $24,000 of retirement income can be excluded*
- IRAs: Up to $24,000 of retirement income can be excluded*
- 401Ks/Defined contribution employer retirement plans: Up to $24,000 of retirement income can be excluded*
- Private pensions: Up to $24,000 of retirement income can be excluded*
- Public Pensions: Up to $24,000 of retirement income can be excluded*
- Military Pay
- Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income. Exceptions available.
- Military Retirement Pay: Up to $15,000 of retirement income 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: Up to $24,000 of retirement income can be excluded*
- Local municipalities average .51% 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.
- Personal Property Tax: Yes, rates and exemptions vary. 65 and over, veterans, and the disabled 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/