CO risk area
Tax exposure in Colorado
State estate or inheritance tax rules and how they interact with federal thresholds.
Colorado does not impose a state estate or inheritance tax.
Does the state impose an estate or inheritance tax?Who is exempt or receives preferential treatment?How does federal tax interact with state rules?
At a glance
Key takeaways
- No state estate or inheritance tax.
- Federal estate tax may apply based on estate size.
- With no state death tax, tax exposure is primarily federal when the estate exceeds the federal exemption.
Questions to consider
Questions this risk area helps you evaluate in Colorado
- Does the state impose an estate or inheritance tax?
- Who is exempt or receives preferential treatment?
- How does federal tax interact with state rules?
State overview
Colorado does not impose a state estate or inheritance tax.
- No state estate or inheritance tax.
- Federal estate tax may apply based on estate size.
- With no state death tax, tax exposure is primarily federal when the estate exceeds the federal exemption.
Sources
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
- https://legalclarity.org/which-states-have-an-estate-or-inheritance-tax/
- https://www.law.cornell.edu/wex/inheritance_tax
Risk sources
- IRS inflation adjustments for tax year 2026
Use for the current federal estate tax basic exclusion amount.
- IRS Instructions for Form 706 (United States Estate Tax Return)
Defines filing requirements and federal estate tax framework.
- Tax Foundation - State estate and inheritance taxes
Current list of states with estate or inheritance taxes.
National sources provide baseline context; state statutes and court rules control in Colorado.