Colorado Veteran Benefits
Complete guide to state benefits for Colorado veterans in 2026
Colorado Military Retirement Tax
Colorado offers military retirement subtraction of up to $24,000 (ages 55-64) or full exclusion (65+). VA disability compensation is always tax-free under federal law.
Colorado Veteran Benefits Summary: Colorado offers military retirement subtraction ($24,000+ depending on age), property tax exemptions for 100% disabled veterans (50% of first $200,000), veteran-owned business preferences, and state employment preferences. Colorado has approximately 380,000 veterans.
State Income Tax
Military retirement (55-64): $24,000 subtraction
Military retirement (65+): Full exclusion
VA disability: Tax-free (federal law)
Property Tax Exemptions
- 100% disabled: 50% of first $200,000
- Surviving spouse: May continue exemption
- Senior exemption: 50% reduction available
Business Benefits
- SDVOSB preference: State contracts
- Veteran business resources: Training and loans
Employment Benefits
- Veterans' Preference: 5-10 points
- Disabled veteran: Additional preference
2026 BAH Rates for Colorado Bases
| Installation | E-5 w/Dep |
|---|---|
| Colorado Springs / Ft. Carson | $2,109 |
| Denver / Buckley SFB | $2,502 |