Estate Tax in Colorado

Overview

Colorado does not impose a state-level estate tax. Residents of Colorado are not required to file a state estate tax return, regardless of the size of their estate. This makes Colorado one of the majority of states that do not levy their own estate tax.

However, estates of Colorado residents may still be subject to the federal estate tax if they exceed the federal exemption amount of approximately $13.99 million (2026). The federal estate tax is imposed at rates up to 40% and is administered by the Internal Revenue Service. For details, see our federal estate tax guide.

Colorado also does not impose an inheritance tax. This means that neither the estate nor the beneficiaries owe state-level death taxes in Colorado. For a comparison of states that do impose these taxes, see our estate tax vs inheritance tax guide.

Even though Colorado does not have a state estate tax, residents with significant assets should still engage in estate planning to minimize potential federal estate tax liability and to ensure their assets are distributed according to their wishes.

Quick Facts: Estate Tax in Colorado

Estate Tax Exemption in Colorado

Since Colorado does not impose a state estate tax, there is no state-level exemption amount. All estates in Colorado are exempt from state estate taxation regardless of their value.

At the federal level, the estate tax exemption is approximately $13.99 million per individual for 2026. Married couples can effectively double this amount through portability. Estates valued below the federal exemption are not subject to the federal estate tax. For more details, see our federal estate tax page.

It is worth noting that the current federal exemption amount is historically high due to the Tax Cuts and Jobs Act of 2017. This elevated exemption is scheduled to sunset after 2025, potentially reverting to a lower amount (approximately $7 million, adjusted for inflation). Consult a tax professional for the most current information.

Estate Tax Rates in Colorado

Colorado does not impose a state estate tax, so there are no state estate tax rates applicable to estates of Colorado residents. This is in contrast to the 13 jurisdictions that do levy their own estate tax with rates that can reach as high as 20%.

At the federal level, estate tax rates are graduated and range from 18% to 40%. The 40% top rate applies to taxable estates exceeding $1 million above the exemption amount. For the current federal rate schedule, see our federal estate tax page.

Filing Requirements

Since Colorado does not have a state estate tax, no state estate tax return is required. There are no state forms to file and no state estate tax payments to make, regardless of the size of the estate.

At the federal level, IRS Form 706 (United States Estate Tax Return) must be filed if the gross estate exceeds the federal exemption amount. The form is due 9 months after the date of death, with extensions available. For information about federal filing requirements, visit the IRS estate tax page.

Estate Tax vs Federal Estate Tax

Since Colorado does not have a state estate tax, residents are only subject to the federal estate tax. The federal estate tax applies to estates exceeding approximately $13.99 million, with rates up to 40%.

The federal estate tax exemption is set at approximately $13.99 million per individual for 2026. This amount is adjusted annually for inflation. Married couples can effectively shield up to approximately $27.98 million from federal estate tax through portability of the unused exemption.

For a comprehensive comparison of estate tax and inheritance tax, including which states impose each, see our Estate Tax vs Inheritance Tax guide. For details about the federal estate tax, visit our Federal Estate Tax page.

Estate Planning Considerations in Colorado

Regardless of whether Colorado imposes a state estate tax, Colorado residents should consider comprehensive estate planning to protect their assets and minimize tax liability. Key strategies may include:

• Creating revocable living trusts to avoid probate and maintain privacy
• Establishing irrevocable trusts to remove assets from the taxable estate
• Making annual gifts within the federal gift tax exclusion ($18,000 per recipient in 2024)
• Utilizing the unlimited marital deduction for transfers between spouses
• Setting up charitable remainder trusts or charitable lead trusts
• Purchasing life insurance in an irrevocable life insurance trust (ILIT)

While Colorado does not impose a state estate tax, residents with assets approaching or exceeding the federal exemption should still engage in tax-focused estate planning. Additionally, residents who own property in states with estate or inheritance taxes should consider the tax implications in those jurisdictions.

This information is general in nature. Consult a qualified estate planning attorney or tax professional for advice tailored to your specific situation and goals.