Colorado has a flat income tax rate of 4.4% — one rate regardless of income level. There are no local city income taxes in the Denver metro. Colorado also has no estate tax, no inheritance tax, and no tax on Social Security benefits for residents 65 and older.
For retirees or high-income earners relocating from California (13.3% top rate), New York (10.9%), or New Jersey (10.75%), the difference is substantial. Combined with Colorado’s low property tax rates, the overall tax environment is one of the primary financial reasons Colorado continues to attract remote workers and retirees from coastal markets.