Nova55LivingFort Collins / Northern CO › Moving from California

Moving from California to Fort Collins: The Real Numbers

California retirees moving to Fort Collins typically save significantly on income tax, can buy a much larger home or bank equity from California home sales, and trade wildfire and earthquake risk for hail risk. Larimer County’s ~0.56% property tax rate is a fraction of what most California buyers are used to paying.

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Income Tax Comparison

ItemCaliforniaColorado (Fort Collins)
State income tax rate1%–13.3% (brackets)4.40% flat
Military retirementTaxed (up to $20K exclusion for some)Up to $24K subtraction at 65+
Social SecurityNot taxedPartially taxable; coordinated w/ pension subtraction
Pension / 401k (65+)Fully taxed at bracket rateUp to $24K subtraction

Property Tax: Prop 13 vs. Larimer County

Long-term California homeowners often pay very low effective rates under Prop 13’s 2%/year assessment cap. But when they sell and buy in Fort Collins, they reset to Larimer County’s standard ~0.56% — which is almost always lower than a new California purchase (new buyers pay ~1.1% of purchase price/year in California). The property tax story favors Colorado Springs for comparison, but Fort Collins still wins against California new-purchase rates.

Home ValueCalifornia New Purchase (~1.1%)Larimer County (~0.56%)Annual Savings
$500K~$5,500~$2,800~$2,700
$700K~$7,700~$3,920~$3,780
$900K~$9,900~$5,040~$4,860
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Equity Arbitrage

A California retiree selling a Bay Area or Southern California home at $1.2M–$2M can buy Sonders Fort Collins at $660K–$775K and bank $425K–$1.3M in freed equity. Placed in conservative investments at 4–5%, that freed equity generates $17,000–$65,000/year in additional income — often enough to more than cover the new Colorado income tax burden. This is the most powerful retirement math for high-home-value California owners.

What California Retirees Give Up

Sonders Fort Collins →Larimer County Tax Guide →Get Expert Help →
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