State Witholding -Colorado

[Paula P]

I retired this year.  On my pension, they do make deductions for federal taxes, but not for state.  They will withhold any amount I request for the state witholdings.  How do I determine what amount I should have deducted from each check in order to not end up paying it all when taxes are due next year?

[johnd84]

Congrats on your retirement! So there's a lot of different factors that could affect this. Generally speaking, Colorado's income tax rate for 2022 is 4.4% Colorado Individual Income tax FAQs You could certainly contact the financial institution that administers your pension and ask them to withhold 4.4%. Most employers don't offer pensions any more. That being said, is it possible your pension is not taxable to Colorado? Many state employees do not pay state tax on state retirement. Hope this helps! 

[johnd84]

Here is another link that could be useful that contains retirement info for Colorado: Colorado retirement FAQs