Colorado Tax Climate for Retirement

Colorado has a relatively friendly tax climate for retirees. Its 2007 rank for income taxes paid as a % of income is a low 36th, while the median property tax paid was $1356 and rank of 31st. There is both a sales tax (2.9%, some cities like Denver add on top of that) and a relatively low income tax (flat rate of 4.63%, but some cities like Denver add to that). The first $24,000 of taxable pension and social security is excluded from income tax, and there may be other benefits that apply to those over 65. Its overall tax burden rank is 34th highest. Bottom line, as a retiree you will probably be better off tax-wise retiring in Colorado than many other states.