Colorado Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax

The state benefits Colorado gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.

Colorado exempts 50% of the first $200,000 of a home's actual value for veterans rated 100% permanent and total (or with VA individual unemployability), their unremarried surviving spouses, and Gold Star spouses. Military retired pay is partly taxable: retirees under 55 can subtract up to $15,000 a year (tax years 2022-2028), and retirees 55 and older use the general pension subtraction ($20,000 at 55-64, $24,000 at 65+). Other state benefits include a fee-exempt Disabled Veteran license plate and a lifetime fishing/small-game license and free state parks pass for veterans with a 50%+ service-connected disability, plus the National Guard tuition waiver. (sources)

Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.

Property tax exemptions
Military retired pay tax
Other veteran benefits
Common questions

Property tax exemptions for veterans in Colorado

Colorado property tax benefits for veterans and surviving spouses (checked November 4, 2026)
Benefit	Who qualifies	Amount	How to apply	Source
Disabled veteran property tax exemption	Honorably discharged veteran who served on active duty (DVA FAQ: at least 24 months) and has a service-connected disability rated 100% permanent and total by the U.S. VA (or 100% permanent through military disability retirement), or has VA individual unemployability status (rated at least 70% but paid at the 100% rate). The veteran or spouse must own the home and occupy it as the primary residence as of January 1. No age requirement and no income limit. A person or married couple can receive only one exemption in total (senior or veteran).	50% of the first $200,000 of the home's actual value is exempt (i.e. up to $100,000 of actual value), primary residence only	Submit the Veteran with a Disability application with a VA Benefit Summary (award) letter to the county assessor where the property is located, between January 1 and July 1 (filings between July 1 and the August 1 late deadline get no appeal rights if denied). Report any change in disability or unemployability status to the assessor within 60 days. No reapplication is needed at the same address unless your VA status changes.	Property Tax Exemption
Surviving spouse of a disabled veteran exemption	Surviving spouse of a veteran who received the disabled veteran exemption before death, who has not remarried and still lives in the same home, owning and occupying it as the primary residence as of January 1.	50% of the first $200,000 of the home's actual value is exempt (up to $100,000 of actual value)	File the Veteran with a Disability Surviving Spouse application with the county assessor between January 1 and July 1 (late deadline August 1, without appeal rights).	Veteran with a Disability and Gold Star Exemptions
Gold Star spouse property tax exemption	Surviving spouse of a U.S. Armed Forces member who died in the line of duty and received a DoD death gratuity, or whose death resulted from a service-related injury or disease and who receives VA Dependency and Indemnity Compensation. The spouse must own the home and occupy it as the primary residence as of January 1. Note: the DVA eligibility text defines 'surviving spouse' as not remarried, while the DVA FAQ says remarriage does not disqualify a Gold Star spouse; confirm with the county assessor.	50% of the first $200,000 of the home's actual value is exempt (up to $100,000 of actual value)	File the Gold Star Spouse application with the county assessor between January 1 and July 1. Attach a VA Benefit Summary letter, or DD Form 1300 if no summary letter is available.	Property Tax Exemption
Active military property tax deferral (loan, not an exemption)	Homeowner called into military service on January 1 of the application year who owns and lives in the home (or is away because stationed elsewhere). All earlier property taxes must be paid. Total liens plus deferrals cannot exceed 100% of actual value for VA-guaranteed loans, or 90% otherwise. No reverse mortgage allowed.	The State Treasurer pays the approved property tax to the county (by April 30) as a simple-interest loan recorded as a junior lien; interest accrues from May 1 of the year claimed. Repayment is due 90 days after a disqualifying event such as a sale, title transfer or the home no longer being owner-occupied (absence while stationed elsewhere is allowed).	Apply through the county treasurer between January 1 and April 1 and reapply each year. The county may charge a recording fee. The 2026 cycle closed April 1, 2026; the 2027 cycle opens January 1, 2027.	Property Tax Deferral Program Overview

Is military retired pay taxed in Colorado?

Colorado state income tax on military retired pay (checked November 4, 2026)
Treatment	Amount or limit	Source
Partially exempt through subtractions on Form DR 0104AD. Retirees under 55 at year-end can claim the military retirement subtraction. Retirees 55 and older instead claim the general pension and annuity subtraction, which also covers military retired pay included in federal taxable income.	Under 55: up to $15,000 a year for tax years 2022-2028 (2019: $4,500; 2020: $7,500; 2021: $10,000). Age 55-64: up to $20,000. Age 65+: up to $24,000 (2025 DR 0104 instruction booklet). For 55+, any Social Security subtraction reduces the pension and annuity limit. Each spouse claims separately on their own benefits.	tax.colorado.gov

For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.

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Other Colorado veteran benefits

Vehicles and license plates

Colorado: vehicles and license plates for veterans
Benefit	Who qualifies	Amount	Source
Disabled Veteran license plate (first set fee-exempt)	Veteran with a service-connected disability rated 50% or more (VA qualification letter or Benefits Summary, or branch-of-service letter) and proof of honorable discharge (e.g. DD 214); Form DR 2002	One set of plates is exempt from fees (C.R.S. 42-3-213(1)(b)(II)(B)); additional sets carry a one-time $50 fee plus other taxes and fees. A separate Disabled Veteran Handicapped plate with parking privileges is also available.	dmv.colorado.gov

Hunting, fishing and other licenses

Colorado: hunting, fishing and other licenses for veterans
Benefit	Who qualifies	Amount	Source
Lifetime fishing and small game combination license for disabled veterans	Colorado-resident military veterans with a service-connected disability of 50% or more as rated by the VA; Purple Heart recipients are also eligible	Lifetime fishing and small game combo license (CPW lists it with its free lifetime licenses for veterans; apply through CPW)	cpw.state.co.us

Education

Colorado: education for veterans
Benefit	Who qualifies	Amount	Source
Tuition Waiver Program for Colorado National Guard members	Eligible Colorado Army and Air National Guard members enrolled in an approved degree or certificate plan at a state-approved Designated Institution of Higher Education. Apply each semester during the open enrollment window (Fall June 1-20, Spring November 1-20, Summer April 1-20).	Up to 100% of in-state tuition for undergraduate and graduate credit-bearing courses, covering the balance after other private, state and federal tuition assistance. Under HB26-1386 (effective July 1, 2026) the institution absorbs 50% and DMVA reimburses 50%.	dmva.colorado.gov

Other benefits

Colorado: other benefits for veterans
Benefit	Who qualifies	Amount	Source
Independence Parks Pass (free annual state parks pass)	Colorado-resident veterans discharged under conditions other than dishonorable who receive VA compensation for a 50%+ combined disability, loss of use of one or both hands or feet, or permanent loss of vision in both eyes; also Purple Heart recipients	Free 12-month pass with unlimited state parks access. Holders 64 or older get a $3/night camping discount Sunday-Thursday (not Fridays, weekends, holidays, cabins or yurts). Separately, active duty, veterans and National Guard members get free state park entry on Veterans Day.	cpw.state.co.us

Common questions

Does Colorado have a property tax exemption for disabled veterans?

Colorado lists 4 veteran property tax benefits. The main one: Disabled veteran property tax exemption. Who qualifies: Honorably discharged veteran who served on active duty (DVA FAQ: at least 24 months) and has a service-connected disability rated 100% permanent and total by the U.S. VA (or 100% permanent through military disability retirement), or has VA individual unemployability status (rated at least 70% but paid at the 100% rate). The veteran or spouse must own the home and occupy it as the primary residence as of January 1. No age requirement and no income limit. A person or married couple can receive only one exemption in total (senior or veteran).. Amount: 50% of the first $200,000 of the home's actual value is exempt (i.e. up to $100,000 of actual value), primary residence only (Property Tax Exemption - Colorado Division of Veterans Affairs).

How do I apply for the Colorado veteran property tax exemption?

Submit the Veteran with a Disability application with a VA Benefit Summary (award) letter to the county assessor where the property is located, between January 1 and July 1 (filings between July 1 and the August 1 late deadline get no appeal rights if denied). Report any change in disability or unemployability status to the assessor within 60 days. No reapplication is needed at the same address unless your VA status changes. (Property Tax Exemption - Colorado Division of Veterans Affairs).

Does Colorado tax military retirement pay?

Partially exempt through subtractions on Form DR 0104AD. Retirees under 55 at year-end can claim the military retirement subtraction. Retirees 55 and older instead claim the general pension and annuity subtraction, which also covers military retired pay included in federal taxable income. Amount or limit: Under 55: up to $15,000 a year for tax years 2022-2028 (2019: $4,500; 2020: $7,500; 2021: $10,000). Age 55-64: up to $20,000. Age 65+: up to $24,000 (2025 DR 0104 instruction booklet). For 55+, any Social Security subtraction reduces the pension and annuity limit. Each spouse claims separately on their own benefits. (tax.colorado.gov).

What other benefits do veterans get in Colorado?

Disabled Veteran license plate (first set fee-exempt) (dmv.colorado.gov); Lifetime fishing and small game combination license for disabled veterans (cpw.state.co.us); Independence Parks Pass (free annual state parks pass) (cpw.state.co.us); Tuition Waiver Program for Colorado National Guard members (dmva.colorado.gov). Who qualifies and the amounts are in the tables above.

Sources

Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.

Colorado senior property tax relief → Colorado state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →