Colorado is once again giving back money to its taxpayers in 2025. Under the Taxpayer’s Bill of Rights (TABOR), senior citizens in the state will receive a refund of $1,130, making it one of the biggest refunds in recent years. This payment comes at a time when many seniors are struggling with the rising cost of living, including healthcare, housing, and groceries.
Let’s understand how this refund works, who can get it, and why it matters for Colorado’s economy.
What Is TABOR and How It Works
The Taxpayer’s Bill of Rights (TABOR) is a special law passed in Colorado that limits how much money the state government can collect. If the state earns more than a set amount, the extra money must be returned to taxpayers through refunds.
This rule was created to keep government spending under control and make sure taxpayers benefit directly when the economy grows. Over the years, TABOR has become a key part of Colorado’s financial system, ensuring transparency and fairness.
Why Seniors Will Receive $1,130 Refund in 2025
The year 2025 has been financially strong for Colorado. The state collected more money than expected — almost $5.2 billion above the limit. Because of this, the government is giving back a large refund to taxpayers, and senior citizens are receiving the highest amount — $1,130.
Seniors have been given priority because many live on fixed incomes and face higher expenses for essentials like medicine, energy bills, and daily needs. This refund is designed to provide them with extra financial support during tough economic times.
Eligibility for the 2025 TABOR Refund
To receive the TABOR refund, senior residents must meet a few simple conditions:
- They must be legal residents of Colorado.
- They should have filed their state income tax return for the year.
- They must meet the age requirement to be classified as seniors.
Even seniors with low or no income can qualify, as long as they file their tax returns. There’s no separate application needed — refunds are sent automatically.
How the Refund Will Be Paid
The Colorado Department of Revenue will handle all payments. Seniors don’t need to do any extra paperwork.
- If taxes were filed online, the refund will come through direct deposit.
- If taxes were filed by paper, seniors will get a mailed check.
- This simple and automatic system ensures that seniors receive their refund smoothly and on time.
TABOR Refunds Over the Years
Colorado’s refund amounts change depending on how much money the state earns each year. Here’s a quick look at the recent trend:
| Year | Average Senior Refund | State Surplus |
|---|---|---|
| 2022 | $750 | $3.7 Billion |
| 2023 | $800 | $4.1 Billion |
| 2024 | $900 | $4.8 Billion |
| 2025 | $1,130 | $5.2 Billion |
As the table shows, 2025 marks the biggest refund in recent history, proving how strong the state’s financial performance has been.
Why This Refund Matters for Seniors
The $1,130 refund is not just extra money — it’s a big relief for seniors dealing with rising costs. Here’s how it helps:
- Financial Safety: Extra cash helps seniors manage their monthly budgets better.
- Essential Support: Many will use this money for groceries, medicine, and bills.
- Boost to Local Economy: When seniors spend locally, it supports small businesses and jobs.
- Peace of Mind: Getting this refund gives seniors a sense of security and respect from the state.
Colorado vs. Other States
Colorado’s TABOR refund system stands out because it’s automatic and guaranteed. In many states, extra revenue goes into new spending programs. But in Colorado, the law requires the surplus to be returned to taxpayers, making it one of the most taxpayer-friendly systems in the U.S.
Looking Ahead to 2026 and Beyond
Future refund amounts will depend on how well Colorado’s economy performs.
- If the economy continues to grow, taxpayers can expect similar or higher refunds.
- If revenue slows, the refund amount may decrease.
However, TABOR ensures that whenever there is extra money, it will go back to the people — not remain with the government.
Conclusion
The $1,130 TABOR Refund in 2025 is a major financial boost for seniors in Colorado. It reflects the state’s strong economy and its commitment to returning excess revenue to taxpayers.
For seniors, this refund arrives at the right time, helping them manage daily expenses and maintain financial independence. Colorado’s TABOR system continues to be a model of fairness, transparency, and fiscal responsibility.
FAQs
Do seniors need to apply for the 2025 TABOR refund?
No, the refund is automatic. Seniors only need to file their state tax returns.
How will seniors receive the refund?
Payments are made through direct deposit for online filers or mailed checks for paper filers.
Can low-income seniors get the refund?
Yes. Seniors with low or no income are also eligible if they file their tax return.
When will the refunds be issued?
Refunds are expected to be distributed in the second half of 2025.
Why is the 2025 refund larger than previous years?
Because the state earned $5.2 billion more than the spending limit, resulting in a bigger refund.
Do non-seniors also get refunds?
Yes. All taxpayers receive TABOR refunds, but seniors get a higher amount due to fixed incomes and rising costs.