Colorado
#15
Of 15 curated destinations
Sample SS untaxed at 65+; other retirement income may be taxed
- Social Security
- Not taxed (state)
- Withdrawal
- Partial / exclusion
- Property estimate
- $2,000
- State income tax on sample
- May apply
Compare different destinations
2026 · age 73 single retiree
2026 · age 73 single retireeColorado vs Washington for Retirees
Washington ranks #6 against #15 for Colorado among 15 curated destinations. Same sample retiree in both: $30,000 of Social Security, a required withdrawal of about $30,189, and a $400,000 home.
By Sammy S. · Founder · AuthorUpdated for 2026
More retiree-friendly on tax
Washington ranks higher
Better on the combination of Social Security treatment, retirement-income treatment, and estate or inheritance tax.
Side-by-side destination scoreboard
Washington
#6
Of 15 curated destinations
Sample SS + RMD: $0 modeled state income tax
- Social Security
- Not taxed (state)
- Withdrawal
- Not taxed (state)
- Property estimate
- $3,000
- State income tax on sample
- $0 modeled
Treatment ladder: Colorado vs Washington
State rules first, then how they land on the sample retiree, then the levies that outlive income tax.
| Measure | Colorado | Washington |
|---|---|---|
| Social Security (state rule) | SS partially taxed | No state income tax |
| Social Security on the sample | Not taxed (state) | Not taxed (state) |
| Retirement income (state rule) | Partial retirement exclusions | No state income tax |
| Required withdrawal on the sample | Partial / exclusion | Not taxed (state) |
| Estate / inheritance tax | No state estate or inheritance tax | Estate tax (exemption ~$3.08M) |
| Property tax on a $400,000 home | $2,000 (0.5%) | $3,000 (0.75%) |
| Combined sales tax rate | 7.89% | 9.57% |
Social Security (state rule)
ColoradoSS partially taxed
WashingtonNo state income tax
Social Security on the sample
ColoradoNot taxed (state)
WashingtonNot taxed (state)
Retirement income (state rule)
ColoradoPartial retirement exclusions
WashingtonNo state income tax
Required withdrawal on the sample
ColoradoPartial / exclusion
WashingtonNot taxed (state)
Estate / inheritance tax
ColoradoNo state estate or inheritance tax
WashingtonEstate tax (exemption ~$3.08M)
Property tax on a $400,000 home
Colorado$2,000 (0.5%)
Washington$3,000 (0.75%)
Combined sales tax rate
Colorado7.89%
Washington9.57%
Why each destination is popular
Colorado: Mountain lifestyle; age 65+ deducts SS fully — younger/higher-AGI filers may still owe.
Washington: No wage income tax; estate tax still applies.
Caveats that move the answer
- Age 65+: sample Social Security is fully deductible in Colorado (AARP). Ages 55–64 still face AGI tests; other retirement income may still be taxed.
- No wage income tax on the sample mix; Washington still has a state estate tax.
- Combined sales rates differ by 1.68 points, and property relief for seniors is set locally — check the county before committing.
Key takeaways — Colorado vs Washington
- Washington ranks higher for retirees — #6 vs #15 on Social Security, retirement-income, and death-tax treatment.
- Sample retiree: single, age 73, $30,000 of Social Security and a required withdrawal of about $30,189 from an $800,000 traditional IRA.
- Colorado: Sample SS untaxed at 65+; other retirement income may be taxed. Washington: Sample SS + RMD: $0 modeled state income tax.
- Property tax on a $400,000 home differs by about $1,000 a year; combined sales rates differ by 1.68 points.
- Colorado: No state estate or inheritance tax. Washington: Estate tax (exemption ~$3.08M).
- This is a fixed educational vignette — your own age, balance, and filing status can change which state looks better.
Colorado vs Washington for retirees in 2026
Popular retirement moves often come down to how a state treats Social Security benefits and required withdrawals from a traditional IRA or 401(k). This page runs the same sample retiree — single, age 73, with Social Security and an IRS-required minimum distribution — through both states' rules.
Washington scores better on this destination list, by about 2.50 points on the underlying friendliness score.
Read the treatment ladder for the state-by-state rule, then the sample outcome, then estate and property context before comparing your own numbers.
Social Security rules vs required-withdrawal rules
Colorado — benefits: SS partially taxed. Sample required withdrawal: Partial / exclusion.
Washington — benefits: No state income tax. Sample required withdrawal: Not taxed (state).
These are two separate state decisions. A state can exempt Social Security entirely and still tax traditional IRA or 401(k) withdrawals as ordinary income — that combination is common among otherwise “retiree-friendly” states.
What outlives income tax: property, sales, and death taxes
Modeled property tax on the same $400,000 home: $2,000 in Colorado vs $3,000 in Washington — about $1,000 apart.
Combined sales tax rates differ by 1.68 percentage points between the two states, which compounds over years of retirement spending.
Death taxes are a separate question from income tax — Colorado: No state estate or inheritance tax; Washington: Estate tax (exemption ~$3.08M). A state can look income-tax friendly and still tax an estate or inheritance.
Why “$0 state tax” is not universal for either state
Colorado's $0 figure on this vignette depends on the sample's exact age and balance — a larger IRA or younger retiree can change the outcome.
Washington's $0 figure on this vignette depends on the sample's exact age and balance — a larger IRA or younger retiree can change the outcome.
Rerun the required-withdrawal calculation with your own birth year and balance, then re-check each state's current retirement-income booklet before relocating.
Concepts to know for this comparison
Short definitions so the scoreboard numbers map to real retirement-tax rules.
Social Security state tax vs retirement-income tax
Two separate rules: whether the state taxes Social Security benefits, and whether it taxes traditional IRA/401(k)/pension withdrawals. A state can treat them very differently.
Required minimum distribution (RMD)
The IRS-mandated annual withdrawal from a traditional IRA once you reach RMD age, computed from the Uniform Lifetime Table. This sample's RMD is about $30,189.
Estate vs inheritance tax
Estate tax is levied on the decedent's estate; inheritance tax is levied on certain heirs. A state can have one, both, or neither — separate from its income-tax treatment of retirees.
Retiree-friendliness score
This site's structural score of Social Security, retirement-income, and estate/inheritance treatment. Lower score / lower rank number is more favorable on those axes — property and sales tax are shown as separate benchmarks.
Myths vs facts — Colorado vs Washington
"No state income tax on Social Security means the state taxes nothing."
Not necessarily. Colorado can still tax a traditional IRA/401(k) withdrawal even where Social Security itself is exempt.
"Washington is simply the better place to retire."
This ranking covers Social Security, retirement-income, and death-tax treatment on one fixed sample plus a property estimate. Housing, healthcare access, climate, and family proximity usually matter more to an actual move.
"An income-tax-friendly state has no death tax."
Not guaranteed. Colorado: No state estate or inheritance tax. Washington: Estate tax (exemption ~$3.08M). Death taxes are a separate legal regime from income tax.
"Federal tax on Social Security disappears if I move to a tax-friendly state."
Federal taxation of benefits depends on your combined income under IRS rules, not your state of residence. Moving states can eliminate the state-level tax while leaving the federal worksheet unchanged.
Who this Colorado vs Washington page helps
Useful if…
- •Soon-to-be retirees weighing a move between Colorado and Washington.
- •Retirees approaching required-withdrawal age who want the state-tax layer on top of the federal rules.
- •Anyone comparing Social Security taxation separately from traditional retirement-account taxation.
- •Estate planners checking whether either state adds a death tax on top of income tax.
Use a fuller model if…
- •You need your own age, balance, and filing status — rerun the required-withdrawal calculator with your real numbers.
- •You need married filing jointly or multiple income sources modeled together.
- •You need county-level property tax or homestead/senior relief, not a statewide effective rate.
- •You need a full household budget including healthcare and housing costs, not just state tax treatment.
Common mistakes reading this pair
- Assuming a state that exempts Social Security also exempts IRA and 401(k) withdrawals.
- Ignoring estate or inheritance tax because the state looks friendly on income tax.
- Treating this fixed sample as your own tax bill instead of rerunning it with your age and balance.
- Forgetting that federal tax on benefits depends on combined income, not your state of residence.
- Skipping property and sales tax comparisons because the income-tax picture looked favorable.
Colorado vs Washington checklist
Before treating this destination comparison as a retirement decision.
- 1Compare Social Security treatment first — Colorado: SS partially taxed; Washington: No state income tax.
- 2Then compare traditional IRA/401(k) withdrawal treatment — it is a separate rule from Social Security.
- 3Check for a state death tax (No state estate or inheritance tax vs Estate tax (exemption ~$3.08M)) if wealth transfer matters to you.
- 4Compare the modeled property tax on your target home value — this sample uses $400,000.
- 5Rerun your own required withdrawal with your birth year and balance in the RMD calculator.
- 6Confirm the current state income-tax booklet before relocating — exclusions and caps change with legislation.
Colorado vs Washington retiree tax FAQs
Washington ranks higher on this list — #6 vs #15 of 15 curated destinations on the Social Security, retirement-income, and death-tax score.
SS partially taxed. Age 65+: Social Security fully deductible from Colorado taxable income (AARP / Colorado DOR). Ages 55–64: full SS deduction if AGI ≤ about $75,000 single / $95,000 joint; above that, up to $20,000 of retirement income (including SS) may be deducted. Confirm Form 104.
No state income tax. Washington has no broad state income tax, so Social Security is not taxed at the state level. Federal tax rules still apply.
Colorado: Partial retirement exclusions — Age-based retirement exclusions apply; Social Security treatment depends on age/AGI as above—confirm current Colorado Form 104 instructions. Washington: No state income tax — Washington does not levy a broad state income tax on pensions or retirement-account withdrawals.
On a single filer aged 73 with $30,000 of Social Security and a required withdrawal of about $30,189: Colorado — sample ss untaxed at 65+; other retirement income may be taxed; Washington — sample ss + rmd: $0 modeled state income tax. Federal tax on up to 85% of benefits can still apply in both.
Modeled property tax on the same $400,000 home: $2,000 in Colorado (0.5% effective) vs $3,000 in Washington (0.75%). Combined sales rates are 7.89% and 9.57%.
Colorado: No state estate or inheritance tax. Washington: Estate tax (exemption ~$3.08M). The federal estate exemption is about $15M per person in 2026.
No. The federal share of Social Security that is taxable depends on combined income under IRS Topic 423 and Publication 915 — about $45,189 for this sample, which puts up to 85% of benefits in play in either state.
This hub ranks 15 popular retirement destinations with a Social Security plus required-withdrawal sample household. For any of the 50 states and DC, use the retirement taxes by state map and its state profiles.
Your age, the size of your traditional balance, whether income is pension or investment based, and state exclusion caps. Rerun the required withdrawal for your own balance and birth year, then confirm the current state booklet.
Possibly. This vignette is fixed at age 73. Some states with age-based rules (for example a full deduction only at 65+) can tax the same benefit for a younger retiree with the same income. Confirm the age thresholds on each state's retirement-tax profile.
Colorado — Sample SS untaxed at 65+; other retirement income may be taxed. Washington — Sample SS + RMD: $0 modeled state income tax. Both are on the same ~$30,189 sample required withdrawal; federal tax on up to 85% of Social Security can still apply in either.
Income-tax treatment differs between Colorado and Washington on this sample, but the $1,000 property-tax gap and 1.68-point sales-tax gap can still outweigh it depending on your spending and home value.
Compare another destination pair
Compare any two destinations
15 curated retirement destinations, ranked on benefit and withdrawal treatment.
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Educational estimates for one fixed retiree, 2026 rules. Exclusion caps and thresholds change with legislation — confirm the current state booklet. Not tax advice.