Not because someone is a senior or veteran. Colorado’s 2026 Amendment 87 would change state income tax rates according to taxable income, not age or veteran status. The official ballot analysis says taxable income below $500,000 would receive a tax reduction and taxable income above that level would face an increase. The campaign says existing tax breaks for Social Security, pensions, and military retirement would remain unchanged, but that is the campaign’s position—not a separate finding in the independent ballot analysis.
What Amendment 87 would change
Amendment 87 is a Colorado measure on the 2026 ballot. If approved, it is proposed to take effect in 2027. It would replace the current flat state income tax rate with graduated marginal rates. The official analysis describes the measure as lowering taxes for taxable income below $500,000 and raising taxes for taxable income above $500,000. Colorado General Assembly ballot analysis
“Taxable income” is the amount to which tax rates apply after relevant deductions and subtractions; it is not the same as adjusted gross income (AGI). A person’s age, retirement status, or veteran status is not itself a tax bracket. The proposed rates apply to portions of taxable income as follows:
| Portion of taxable income | Proposed rate |
|---|---|
| First $25,000 | 3.7% |
| $25,001–$100,000 | 4.2% |
| $100,001–$500,000 | 4.4% |
| $500,001–$750,000 | 7.4% |
| $750,001–$1,000,000 | 7.9% |
| Above $1,000,000 | 8.4% |
These are marginal rates: a higher rate applies only to the income within its bracket, not to all of a taxpayer’s income. The rates and brackets are those in the state’s 2026 State Ballot Information Booklet.
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Does the measure tax Social Security, pensions, or military retirement differently?
The Colorado Department of Revenue describes existing subtractions for qualifying retirement income, including Social Security, pensions, and military retirement. Eligibility and allowable amounts differ by tax category and other rules; not every payment is necessarily fully exempt. See the department’s January 2026 Individual Income Tax Guide and its Social Security, Pensions, and Annuities guidance, revised January 2025.
Protect Colorado’s Future, the campaign supporting Amendment 87, says the measure does not change existing tax breaks, deductions, exemptions, or credits. Its FAQ answers “No” to whether the proposal eliminates tax breaks on Social Security, pensions, and military retirement. That is the campaign’s explanation; the independent ballot analysis lays out the proposed rates and estimated effects but does not separately inventory each retirement-income subtraction.
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Even if a qualifying subtraction remains available, a rate change can still affect a person’s tax bill if the person has taxable income. The result depends on taxable income, the proposed brackets, and eligibility for any applicable subtraction—not simply on being a retiree or veteran.
What the official estimates show—and what they do not
The ballot booklet reports average tax changes by AGI category, not by age, veteran status, or taxable-income bracket. Those category averages are not individual forecasts:
| AGI category | Reported average tax change |
|---|---|
| $25,000 or less | −$9 |
| $25,001–$50,000 | −$119 |
| $50,001–$100,000 | −$210 |
| $100,001–$200,000 | −$298 |
| $200,001–$500,000 | −$325 |
| $500,001–$1,000,000 | −$325 |
| $1,000,001–$2,000,000 | +$4,764 |
| $2,000,001–$5,000,000 | +$13,914 |
These are the average changes reported by Colorado General Assembly Legislative Council Staff in the 2026 ballot booklet. The categories use AGI, while the proposed rates apply to taxable income, so the averages should not be substituted for a household’s calculation. The booklet also says actual collections may differ with economic and other conditions. 2026 State Ballot Information Booklet
The booklet estimates $2 billion in additional state income tax revenue in the first full year. It says the additional revenue must supplement, rather than replace, existing spending on K–12 education, health care, and early childhood care and education; the legislature would determine the specific programs and amounts. Colorado General Assembly Legislative Council Staff
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How a senior or veteran can assess their own situation
- Start with taxable income, not age or the AGI averages. The measure’s rates are applied to taxable income. The ballot booklet’s estimated changes are grouped by AGI and are averages, not personal projections.
- Check which retirement-income subtraction applies. Review the Department of Revenue’s rules for the specific income type—Social Security, pension, annuity, or military retirement—and the applicable eligibility limits.
- Apply the proposed marginal brackets only to income within each bracket. If the measure is approved, income above a bracket threshold would not cause all income to be taxed at that higher rate.
- Treat the preservation statement with the right attribution. The campaign says existing breaks remain unchanged; the independent ballot analysis does not separately confirm each subtraction.
The official materials do not provide a separate estimate for seniors or veterans as groups. Two people of the same age or veteran status can have different results because their taxable income and qualifying subtractions differ.
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