“Death Tax” in Colorado: What You Need to Know
The term “death tax” can be misleading. It’s often used to describe estate and inheritance taxes, but it’s essential to understand the difference.
The good news for Colorado residents? Colorado does not have a state-level estate or inheritance tax. This is a major advantage for those planning their estates.
However, that doesn’t mean you’re entirely off the hook. It’s crucial to understand the implications of the federal estate tax. Even though Colorado doesn’t impose its own tax, the federal government might.
Keep in mind that significant changes to the federal estate tax exemption are scheduled for 2026. These changes will impact estate planning strategies for many people, so it’s wise to consult with a financial advisor or estate planning attorney.