Retiring in Colorado: The Home and Money Guide
This guide covers how Colorado taxes retirement income, the property tax breaks for seniors, where retirees love to live in Northern Colorado and the Denver area, and how to choose a home for the next chapter.
Get the free printable PDF with the worksheets and checklists.
Download the Retiring in Colorado Guide (PDF)How Colorado Taxes Retirement Income
Colorado has a flat state income tax, and retirees can subtract a large share of retirement income before it applies. For tax years 2025 and later:
| Age | Social Security | Pensions, annuities and IRA distributions |
|---|---|---|
| 65 and older | All taxable Social Security can be subtracted | Up to $24,000 per person, reduced by any Social Security subtracted |
| 55 to 64 | All taxable Social Security if AGI is $75,000 or less (single) or $95,000 or less (joint) | Up to $20,000 per person |
Source: Colorado Department of Revenue. Each spouse's subtraction is figured separately on a joint return.
Property Tax Breaks for Seniors
Senior Homestead Exemption
Exempts 50% of the first $200,000 of your home's actual value. You must be 65 or older and have owned and lived in the home for at least 10 consecutive years. Apply with your county assessor from January 1 to July 15. It does not transfer to a new home for 2027 and later.
Property Tax Deferral Program
Homeowners 65 and older can defer property taxes on their primary residence as a state loan. Apply with your county treasurer from January 1 to April 1; total liens must be no more than 75% of the home's value. The rate is 4.238% for May 2026 through April 2027.
Where Retirees Love to Live
| Town | Why retirees choose it | Hospital close by |
|---|---|---|
| Longmont | Walkable Main Street, greenways and three city golf courses | UCHealth Longs Peak; CommonSpirit Longmont United |
| Loveland | Lakes, public art and easy mountain access | UCHealth Medical Center of the Rockies; McKee Medical Center |
| Fort Collins | Old Town, CSU arts and the Poudre River Trail | UCHealth Poudre Valley Hospital |
| Berthoud | Small-town feel between Longmont and Loveland | Hospitals in Longmont and Loveland |
| Broomfield | Anthem Ranch, a 55+ community, plus US 36 access | UCHealth Broomfield Hospital |
| Louisville and Lafayette | Historic downtowns and trails near Boulder | Avista Adventist; Good Samaritan Medical Center |
| Estes Park | Mountain living next to Rocky Mountain National Park | Estes Park Health |
Choosing Your Retirement Home
- Stay and update: grab bars, a walk-in shower and a main-floor bedroom can keep a familiar home working.
- Ranch or patio home: one-level living with less upkeep. See ranch homes in Longmont and Frederick.
- Condo or townhome: lock and leave for travel; check stairs and HOA reserves.
- 55+ community: built-in social life and amenities.
- Independent or assisted living: services, meals or care included for a monthly fee.
Paying for Your Retirement Home
Many retirees buy the next home with cash from the last one and keep the rest in reserve. Lenders can also qualify you on Social Security, pension and retirement account income. Homeowners 62 and older can use a reverse mortgage for purchase (HECM for Purchase) to buy with a large down payment and no monthly mortgage payment, though fees are higher and taxes, insurance and upkeep still apply. Talk with an independent HUD counselor before choosing one.
Planning Your Retirement Move?
The New Horizons Team helps retirees compare towns, find one-level and low-maintenance homes, and sell the family home for top value across Northern Colorado and the Denver area.
Talk With Us About Retiring Here Call or Text 720-432-8695Updated October 2026. General information only, not legal, tax or financial advice. Rules and programs change; talk with a CPA, an elder law or estate attorney, or a lender about your situation. New Horizons Team | LoKation Real Estate.