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2026 rules · verified against Colorado's primary source
Colorado partially exempts military retirement pay (up to about $15,000); the rest is taxable.
Retirees under age 55 deduct up to $15,000 of military retirement pay; age 55+ get no military-specific subtraction but may use the general pension/annuity subtraction.
Treatment
partially exempt
Exemption up to
$15,000
Top marginal rate
4.40%
Source: https://content.leg.colorado.gov/sites/default/files/2023-te2_military_retirement_benefits_deduction.pdf · verified July 2026
Estimated Colorado state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
More Colorado: all Colorado veteran benefits · military retirement tax in every state · what your pension is worth