Updated August 2026

Colorado Veteran Benefits 2026

From the Academy to the Springs, the Centennial State takes care of its own.

Colorado’s military roots run from Fort Carson to the Air Force Academy, and its veteran benefits reach from your driveway to the backcountry. Every claim below is checked against Colorado statutes and agencies.

Colorado Highlights

Partial military retirement tax exemption
Property tax exemption for 100% P&T and TDIU veterans
One vehicle exempt from ownership tax & registration fees, plus free DV plates, at 50%+ permanent service-connected disability
Free annual Independence state parks pass at 50%+ rating or with a Purple Heart
Free lifetime fishing & small-game license for resident veterans rated 50%+
100% in-state tuition waiver for Colorado National Guard members

Red rock formations of Garden of the Gods with Pikes Peak in the background, Colorado Springs — Garden of the Gods red rocks with Pikes Peak. Photo: Larry D. Moore, Wikimedia Commons (CC BY 4.0)

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

Recent change: Amendment G (referred via HCR23-1002), passed by Colorado voters in November 2024, expanded eligibility to veterans with VA Individual Unemployability (TDIU) status beginning the 2025 property tax year (taxes paid in 2026). NOTE: A separate 2024 bill, HB24B-1006, which would have changed the exemption base from the fixed first-$200,000 to a state-median-home-value formula, was POSTPONED INDEFINITELY (failed); the fixed $200,000 base remains in effect for 2025/2026.

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.

Check your exemption by rating & state →

Vehicle & Registration Benefits

Disabled Veteran (“D.V.”) license plates — one set free: Colorado issues one set of Disabled Veteran plates at no charge to a veteran with an honorable discharge (DD214) whose VA qualification letter shows a 50% or more service-connected permanent disability, or loss of use of one or both feet or one or both hands, or loss of sight in both eyes — see the Colorado Division of Veterans Affairs and the DMV’s Disabled Veteran plate checklist (C.R.S. 42-3-213(5)). The first exempt set is issued by the State Registrations Section; second and additional sets come from your county motor vehicle office on payment of normal taxes and fees. The standard DV plate does not include handicap-parking privileges — the separate Handicap Disabled Veteran plate requires written verification of a mobility impairment (Form DR 2219). The veteran must be the owner, co-owner, trust beneficiary, or lessee of the vehicle.

No registration fee and no ownership tax — one vehicle at a time: Under C.R.S. 42-3-304(3)(a), no annual registration fee is due on a vehicle owned by a veteran receiving VA (or branch-of-service) compensation for a 50% or more service-connected permanent disability, loss of use of one or both feet or hands, or permanent vision loss in both eyes amounting to virtual blindness; the exemption carries over to vehicles you buy later but never covers more than one vehicle at a time. C.R.S. 42-3-104(5) likewise exempts one Class B or Class C vehicle under 16,000 lbs empty weight per veteran from Colorado’s annual specific ownership tax, and holding Disabled Veteran plates automatically qualifies you for that exemption. Note these are the annual registration-time charges — Colorado’s ownership tax is the “personal property tax” portion of your yearly registration bill.

Purple Heart & decoration plates: One set of Purple Heart plates is issued free (C.R.S. 42-3-213(1)(b)(II)), Purple Heart registrants pay no annual registration fee (C.R.S. 42-3-304(3)(e)), and one vehicle per recipient is exempt from specific ownership tax (C.R.S. 42-3-104(8)). Former prisoners of war, military-valor awardees, and Pearl Harbor survivors get the same package (free plate set, no registration fee, ownership-tax exemption); Medal of Honor recipients get a free plate set and pay no annual registration fee. One free set is also available for Distinguished Flying Cross (awarded for valor), disabled woman veteran, and Seabees plates; fallen-service-member (Gold Star family) and World War II plates waive the one-time issuance fee.

Military & veteran specialty plates: C.R.S. 42-3-213 authorizes more than 30 military plate categories — the honorably discharged veteran plate, branch plates (Marine Corps, Army, Navy, Air Force, Coast Guard, Space Force), war-service plates (World War II, Korea, Vietnam, Desert Shield/Desert Storm, Afghanistan, Iraq), Bronze Star, Navy SEALs, submarine crew, special forces, 10th Mountain Division, woman veteran, and more. Unless listed above as fee-exempt, these cost regular registration taxes and fees plus a $25 one-time issuance fee (C.R.S. 42-3-213(1)(b)(I)), with a DD214 or award verification as proof. Details and forms: Colorado DMV license plates page.

Recreation: Parks, Hunting & Fishing

Independence Pass — free state parks pass at 50%+ or with a Purple Heart: Colorado Parks & Wildlife’s free Independence Pass gives Colorado resident veterans receiving VA compensation for a combined service-connected disability rating of 50% or greater — or for loss of use of one or both hands or feet, or permanent loss of vision in both eyes — and Purple Heart recipients unlimited entry to all Colorado state parks. The hang-tag pass is valid for 12 months from issue (renewable), moves between vehicles, and admits everyone in the vehicle when the pass-holding veteran is present; holders age 64+ also get $3 camping discounts Sunday–Thursday. Apply with CPW’s Veteran’s License and Pass Application by mail, email, or in person at CPW headquarters in Denver. Separately, the $14 annual Columbine Pass covers any Colorado resident with a total and permanent disability on a fixed or limited income.

DV and Purple Heart plates enter parks free: Vehicles displaying Colorado Disabled Veteran or Purple Heart license plates are admitted to state parks free with no windshield pass needed (the veteran must be in the vehicle; plates alone don’t earn the camping discount). And every August, CPW admits active-duty members and veterans free to all Colorado state parks for the entire month.

Free lifetime fishing & small-game license — 50%+ resident disabled veterans: CPW offers a free Lifetime Fishing License or Lifetime Fishing and Small Game Hunting Combination License (the “VA combo license”) to Colorado resident veterans with a service-connected disability rated 50% or more by the VA; Purple Heart recipients also qualify. VA combo license holders are exempt from buying the annual Habitat Stamp. The threshold dropped from 60% to 50% under SB24-161, effective August 7, 2024. The license covers fishing and small game only — big-game licenses (deer, elk) are purchased normally.

Active duty stationed in Colorado: Members on permanent orders in Colorado and their family members can buy hunting licenses at resident rates with proof of active-duty status (this provision does not extend to reserve or National Guard status), and CPW allows service members to test out of the hunter-education requirement.

Education & Other Colorado Benefits

Colorado National Guard tuition waiver — up to 100% of in-state tuition: Members of the Colorado Air and Army National Guard can have up to 100% of in-state tuition waived for undergraduate and graduate credit-bearing courses in an approved degree or certificate plan, part-time or full-time, at state-approved public Designated Institutions of Higher Education. Mandatory fees, textbooks, and other expenses are not covered. You must apply in each semester’s enrollment window (waivers are not automatic and are subject to legislative funding), complete the FAFSA or CASFA, establish in-state residency with your school, have completed basic training, and remain in good standing with the Guard. Beginning July 1, 2026, HB26-1386 restructured the program — other tuition assistance is applied first, the institution absorbs 50% of the waived balance with DMVA reimbursing the other 50%, and per-institution enrollment caps were removed.

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.

Official Colorado Veterans Resources

Frequently Asked Questions

Does Colorado 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.

Does Colorado offer property tax exemptions for disabled veterans?

Does Colorado have a state income tax?

Colorado has a state income tax. 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.

Do disabled veterans pay vehicle registration fees or ownership tax in Colorado?

Colorado waives the annual registration fee (C.R.S. 42-3-304(3)(a)) and the annual specific ownership tax (C.R.S. 42-3-104(5)) for one vehicle at a time owned by a veteran receiving VA compensation for a 50% or more service-connected permanent disability, or for loss of use of one or both feet or hands, or permanent vision loss in both eyes. One set of Disabled Veteran license plates is also issued free to veterans with an honorable discharge who meet the same criteria; the standard DV plate does not include handicap-parking privileges.

Do disabled veterans get free Colorado state park passes?

Yes. Colorado Parks and Wildlife's free Independence Pass gives Colorado resident veterans with a combined service-connected disability rating of 50% or greater, or any Purple Heart recipient, unlimited entry to all Colorado state parks. It is a hang-tag pass valid for 12 months from issue and renewable, and it admits everyone in the vehicle when the veteran is present. Vehicles displaying Colorado Disabled Veteran or Purple Heart license plates also enter state parks free, and active-duty members and veterans are admitted free for the entire month of August.

Do disabled veterans get free hunting and fishing licenses in Colorado?

Colorado resident veterans with a VA service-connected disability rated 50% or more, and Purple Heart recipients, qualify for a free Lifetime Fishing License or Lifetime Fishing and Small Game Hunting Combination License from Colorado Parks and Wildlife, and combo-license holders are exempt from buying the annual Habitat Stamp. The threshold dropped from 60% to 50% under SB24-161, effective August 7, 2024. The free license covers fishing and small game only, not big-game licenses.