1. Colorado

Colorado taxes Social Security benefits, but with important age-based deductions.

Seniors 65 and older can subtract federally taxable Social Security benefits from their state taxable income. However, younger retirees (ages 55–64) face partial limitations depending on income levels.

Colorado offers a sizable retirement income deduction, but the rules can be complex. Retirees with higher combined income may still owe some state tax.

The key takeaway: many seniors will pay little or no tax, but income level and age matter.