Colorado
Colorado still taxes Social Security benefits, but some retirees may qualify for substantial deductions to reduce or eliminate their tax liability. Colorful Colorado has a smart way to do things, and there are different levels of tax breaks based on age. In the end, older retirees benefit the most, and this is an amazing thing.
For retirees age 65 and older, Colorado allows a deduction of up to $24,000 of federally taxed Social Security benefits from taxable income. These deductions allow many seniors to dramatically lower the amount of Social Security income due to the state’s flat tax on income rate, which is 4.25% for the 2025 tax year.
The good news is that for the 2025 tax season, a new bill has passed, and legislation will allow retirees aged 55 to 64 to deduct up to $75,000 of Social Security benefits from taxable income, a significant increase from the former $20,000 limit.
1 thought on “Which States Tax Social Security Benefits in 2025?”
All states should drop SS taxes as we paid those taxes including Federal taxes. SS should not be taxed period.