Moving from Colorado

About 211,400 people left Colorado for other states in 2023, while about 232,700 moved in.

  • Colorado gained about 21,300 people on the exchange.
  • The exit paperwork is short.
  • File a part-year return for the year you move.
  • Return or recycle the Colorado plates when you no longer need them.
  • If you sell a Colorado house after you leave, plan for tax withholding at closing.
  • This page covers every Colorado-origin route we track.
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Colorado at a Glance

Taxes

State income tax4.4%
State sales tax2.9%
Property tax (eff.)0.5%

Climate

Avg annual temp45°F
Annual precipitation17″

Semi-arid and alpine with cold winters, abundant sunshine, and warm summers.

Cost of Living

COL index101.8 (US=100)
Avg electric bill$101/mo

Why People Move from Colorado

Texas is the top destination.

  • Census ACS 2023 flows put it at about 25,400, then California at about 14,800 and Florida at about 13,300.
  • Arizona took about 8,300, Nevada about 8,100, and Washington about 7,300.
  • Most of these routes also run the other way.
  • Texas sent about 32,200 people to Colorado and California about 26,100, so Colorado gained people on both.
  • Nevada is the most lopsided of these routes: it took about 8,100 people from Colorado and sent back about 1,900.

On cost, Colorado sits near the national average.

  • The MERIC first quarter 2026 series put the cost of living index at 101.8, ranked 35th, with housing at 107.4 as the high component.
  • The Tax Foundation lists a flat 4.40 percent income tax and a 0.50 percent effective property tax rate on owner-occupied homes.
  • The state sales tax is 2.90 percent, and the average combined state and local rate is 7.89 percent.

Before You Leave Colorado

File Form DR 0104 with Schedule DR 0104PN

You are a part-year resident if you move out of Colorado to make your home somewhere else. Colorado taxes the income you earned while you lived here. It also taxes income from Colorado sources after you leave. File a part-year return if you must file a federal return or you owe Colorado tax. Attach the DR 0104PN to the DR 0104. The rate for tax year 2025 is a flat 4.4 percent.

Source: Colorado Department of Revenue, Individual Income Tax Guide (January 2026)

Plan for 2 percent withholding if you sell a house after you move out

If you sell Colorado real property for more than $100,000 as a nonresident, the closing agent may withhold tax. The amount is 2 percent of the sales price or the net proceeds, whichever is less. There is an exception for a house that was your principal residence just before the sale and could qualify for the federal home sale exclusion. To use it, sign that affirmation on form DR 1083.

Source: Colorado Department of Revenue, Form DR 1083 (2025)

Return or recycle your Colorado plates

When you no longer need the Colorado plates, return them to your county motor vehicle office. You can also recycle them with a service that takes metal. You may be able to use personalized plates on another vehicle. Ask your county motor vehicle office.

Source: Colorado DMV, License Plates

Complete a release of liability if you sell the vehicle

If you sell your vehicle before the move, complete a Release of Liability. You can do it through Colorado DMV online services.

Source: Colorado DMV, Vehicle Registration

Expect mail ballots until your county knows you moved

Your county clerk mails you a ballot until it receives information that you moved out of state. You can have only one residence for voting. Withdraw your Colorado registration on the Secretary of State website. You can also mail the withdrawal form to your county clerk. Then register to vote in your new state.

Source: Colorado Secretary of State, Voter Registration FAQs

Colorado DMV & Registration

Your new state sets the deadline for its license and plates.

  • When you no longer need the Colorado plates, return them to your county motor vehicle office.
  • You can also recycle them with a service that takes metal.
  • Personalized plates may be usable on another vehicle, so ask your county office first.
  • If you sell the car before you move, complete a Release of Liability through Colorado DMV online services.
Official Colorado DMV →

Frequently Asked Questions

Do I have to file a Colorado tax return after moving out?

Usually, for the year you move.

  • If you leave Colorado to make your home somewhere else, you are a part-year resident.
  • You must file if you have to file a federal return or you owe Colorado tax.
  • File Form DR 0104 and attach Schedule DR 0104PN.
  • Colorado taxes the income you earned while you lived here, plus income from Colorado sources after you leave.
  • The DR 0104PN prorates the tax to that income.
  • The rate for tax year 2025 is a flat 4.4 percent.

What do I do with my Colorado license plates when I move?

Return them to your county motor vehicle office, or recycle them with a service that takes metal.

  • If the plates are personalized, you may be able to use them on another vehicle.
  • Check with your county office.
  • If you sell the car instead of moving it, complete a Release of Liability through Colorado DMV online services.

Do I owe Colorado tax if I sell my house after moving away?

Gain on Colorado property counts as Colorado income on the DR 0104PN.

  • If a nonresident sells Colorado real property for more than $100,000, tax may be withheld at closing.
  • The amount is 2 percent of the sales price or the net proceeds, whichever is less.
  • The withholding is credited to your Colorado income tax account, and you claim it on your Colorado return.
  • No withholding is required if you sign the principal residence affirmation on form DR 1083.
  • It covers a house that was your principal residence just before the sale and could qualify for the federal home sale exclusion.

Will I still get Colorado mail ballots after I move?

Yes, until your county clerk receives information that you moved out of state.

  • For voting, you can have only one residence, and it lasts until you establish a new one.
  • To stop the ballots, withdraw your Colorado registration on the Secretary of State website, or mail the withdrawal form to your county clerk.
  • Then register to vote in your new state.

Where do people move when they leave Colorado?

Using Census ACS 2023 state-to-state flows: Texas (about 25,400), California (about 14,800), Florida (about 13,300), Arizona (about 8,300), Nevada (about 8,100), and Washington (about 7,300).

  • Texas, California, and Arizona each sent more people to Colorado than they took from it.
  • Nevada and Florida took more than they sent.