Taxes on PERA Benefits

All PERA benefit recipients will want to know how a PERA benefit is affected by federal and Colorado state income tax laws. This brochure has information on both federal and state tax laws and includes the Withholding Preference Form to authorize or change withholding.

If you do not provide withholding instructions, federal law requires PERA to withhold federal income tax at a rate for a married individual claiming three allowances.

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