CO HB1062

Removes all caps on the state income tax subtraction for pension and annuity income for individuals age 55 and older, effective for tax years beginning January 1, 2027

Current law caps the subtraction at $20,000 for individuals ages 55-64 and $24,000 for those 65 and older, with exceptions for Social Security benefits

Qualifying income includes employer pensions, military retirement, IRA and self-employed retirement account distributions, privately purchased annuities, and Social Security benefits

Requires the Department of Revenue to collect data for the State Auditor to measure the effectiveness of the expanded tax subtraction

Takes effect August 12, 2026, unless a referendum petition is filed, in which case voter approval would be required at the November 2026 election