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Colorado

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Colorado State and Local Tax Profile

Income Taxes

  • All taxpayers: 4.63% of Federal taxable income
  • Personal Exemptions/Credits: Federal amounts are automatically adopted.
  • Standard Deduction: None
  • Medical/Dental Deduction: Federal amount
  • Federal Income Tax Deduction: None
  • Retirement Income Taxes: Taxpayers 55-64 years old can exclude a total of $20,000 for Social Security and qualified retirement income. Those 65 and over can exclude up to $24,000. All out-of-state government pensions qualify for the pension exemption. The total exclusion may not be more than indicated from all exempt sources. However, Social Security/Railroad Retirement income not taxed by the federal government is not added back to adjusted gross income for state income tax purposes.
  • Retired Military Pay: Same as above.
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  • Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
  • VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
  • Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Sales Taxes

  • State Sales Tax: 2.9% (food and prescription drugs exempt); many cities and counties have their own rates which are added to the state rate. Total could be as high as 9.9%.
  • Gasoline Tax: 22 cents/gallon
  • Diesel Fuel Tax: 20.5 cents/gallon
  • Cigarette Tax: 84 cents/pack of 20

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Property Taxes

  • The county assessor determines the value of property using a market, cost or income approach. Property taxes are assessed on a percentage of the property's actual value. You can determine your property tax bill by multiplying the assessed value by the local tax rate.
  • A homestead exemption for qualifying seniors and the surviving spouse of a senior who previously qualified is available. Seniors must be at least age 65. It allows 50% (up to a maximum reduction of $100,000) in actual value of a primary residence to be exempt. The state pays the tax on the exempted value. The person must have owned and lived in the home for at least 10 years. Click for details.
  • Full-year Colorado residents age 65 or older, disabled, or a surviving spouse age 58 or older, may qualify for the Property Tax/Rent/Heat Rebate and/or the Property Tax Deferral. Qualified applicants can receive a rebate of up to $600 of the property tax and $192 of their heating expenses paid during the year, either directly or as part of their rent payments, by filing the Property Tax/Rent/Heat Rebate form Click for details.

Estate Taxes

  • There is no inheritance tax and the Colorado estate tax is limited to federal estate tax collection.

For further information, visit the Colorado Department of Revenue site or call 303-232-2446.





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Last Updated ( Monday, 21 January 2008 )
 
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