The short version
- Social Security taxed?
- Partly
- Income tax
- Flat 4.4%
- Property tax on a $300,000 home
- ≈ $1,500 / yr ($125 / mo)
- Everyday cost index (U.S. = 100)
- 103
- January / July high
- 45°F / 89°F
- Sales tax (state + local avg)
- 7.89%
Retiring in Colorado
Low property taxes, 300 days of sunshine, and Social Security fully exempt at 65+. Watch out: home prices well above the national average.
How Colorado taxes your retirement income
Social Security: this state taxes a portion of benefits, usually above certain income levels.
Pensions: $24,000 exclusion per person 65+ ($20,000 ages 55–64).
401(k) and IRA withdrawals: The same $24,000 exclusion covers 401(k)/IRA withdrawals at 65+.
The setup: Flat 4.4%.
Property tax & senior breaks
The average effective property tax rate is about 0.50% — roughly $1,500 a year ($125 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Senior homestead exemption: 50% of the first $200,000 of value at 65+ after 10 years in the home.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 3% above the U.S. average. The combined state and average local sales tax is 7.89%.
Weather
January days top out around 45°F and July days around 89°F, with roughly 245 sunny days a year. Watch out for: Snow, hail, and wildfire risk along the Front Range foothills.
Healthcare
Strong Denver-metro hospital systems; mountain and rural access is thinner.