Updated January 2026
Colorado Veteran Benefits 2026
Colorado offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in CO for 2026.
Colorado Highlights
- Partial military retirement tax exemption
- Property tax exemption for P&T veterans
- Free hunting and fishing licenses for disabled veterans
- State tuition assistance for veterans
Income Tax Treatment
Colorado has a state income tax.
Military Retirement Pay: Colorado lets military retirees under 55 deduct up to $15,000 of retired pay (through tax year 2028); those 55-64 may deduct up to $20,000 and those 65+ up to $24,000 under the general pension deduction.
Active Duty Pay: Active duty pay earned while stationed outside Colorado may be exempt.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Colorado does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in Colorado
Type: Fixed-dollar reduction
Colorado exempts 50% of the first $200,000 of a qualifying disabled veteran's primary-residence value, and as of the 2025 tax year veterans with VA Individual Unemployability (TDIU) status now qualify in addition to those rated 100% permanent and total.
| VA disability rating / category | What you get |
|---|---|
| 100% P&T (permanent and total) | Exemption of 50% of the first $200,000 of the home's actual value (max ~$100,000 of value exempted) on the primary residence.Honorable discharge; must own and occupy the home as primary residence; apply to county assessor between Jan 1 and July 1. |
| TDIU / Individual Unemployability (rated at least 70% but compensated at the 100% rate) | Same 50%-of-first-$200,000 exemption as 100% P&T veterans.New as of the 2025 property tax year (taxes payable 2026) under Amendment G; VA-determined Individual Unemployability status required. |
- Income limit: None
- Age requirement: None (unlike the separate senior homestead exemption, which requires age 65 and 10 years' occupancy; the disabled-veteran exemption has no age requirement)
- Surviving spouse: Surviving spouse of a qualifying disabled veteran may continue the exemption; Gold Star spouses (surviving spouse of a service member who died in the line of duty or from a service-connected injury/disease) qualify for the same 50%-of-first-$200,000 exemption under a separate eligibility track.
- Counts being paid at 100% via unemployability (TDIU)? Yes — being paid at the 100% rate via Individual Unemployability (TDIU) qualifies
Source: Colo. Const. art. X, § 3.5; C.R.S. § 39-3-203 (Property Tax Exemption for Qualifying Disabled Veterans and Gold Star Spouses) and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Colorado Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
VA Healthcare in Colorado
Colorado has approximately 3 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.