---
title: Colorado Military & Veteran Property Tax Exemptions (2026)
slug: colorado-veteran-property-tax-exemptions-2026
description: >-
  How Colorado veterans and military families can lower property taxes, plus
  military retirement and income tax rules. Talk with a VeteranPCS agent today.
publishedAt: '2025-11-01T09:00:00.000Z'
updatedAt: '2026-06-21T00:00:00.000Z'
author: VeteranPCS
categories:
  - Financial Guidance
canonical: 'https://www.veteranpcs.com/blog/colorado-veteran-property-tax-exemptions-2026'
componentSlug: financial-guidance
stateSlug: colorado
---
# Colorado Military & Veteran Property Tax Exemptions (2026)

If you serve in the military or have served, the Colorado disabled veteran property tax exemption can lower what you owe on your home each year. Colorado is a popular place to land after a PCS, short for Permanent Change of Station, the official military move from one duty station to another. The state offers a property tax break for some disabled veterans and Gold Star spouses, plus income tax breaks on certain military pay. This guide covers the main rules and points you to the state's own sources. Tax rules change, so treat this as a starting map, not the final word.

## The Colorado Disabled Veteran Property Tax Exemption

Colorado's main property tax benefit for veterans is the Disabled Veteran Property Tax Exemption. If you qualify, the state exempts 50 percent of the first $200,000 of the actual value of your primary residence. In plain terms, up to $100,000 of your home's value is removed before the tax is figured, and the state reimburses your county for the lost revenue. You can read the rule on the [Colorado Division of Property Taxation page for veterans with a disability and Gold Star spouses](https://dpt.colorado.gov/property-tax-exemption-for-veterans-with-a-disability-and-gold-star-spouses).

### Who Qualifies

To qualify as a veteran, you must have served on active duty in the U.S. armed forces, received an honorable discharge, and have a service-connected disability rated by the VA as 100 percent permanent. The VA is the U.S. Department of Veterans Affairs, the federal agency that rates these disabilities. "Permanent and total," often shortened to P&T, means the VA does not expect the disability to improve.

Colorado also covers veterans granted individual unemployability status. IU, short for individual unemployability, applies to veterans rated below 100 percent who the VA pays at the 100 percent rate because their disability keeps them from holding steady work. As the [Colorado Division of Veterans Affairs property tax exemption page](https://vets.colorado.gov/property-tax-exemption) explains, IU veterans are usually rated at least 70 percent but paid at the 100 percent level. There is no age requirement.

### Gold Star Spouses and Surviving Spouses

The exemption can also reach families. A Gold Star spouse is the surviving spouse of a service member who died in the line of duty, or of a veteran whose death resulted from a service-related injury or disease. Gold Star spouses can qualify for the same 50 percent break, and remarriage does not disqualify them. A surviving spouse of a veteran who already received the exemption may also apply to keep it, as long as they have not remarried and still live in the same home. The [Division of Veterans Affairs page](https://vets.colorado.gov/property-tax-exemption) lists the exact rules for each group.

## How It Works With the Senior Exemption and Local Property Tax

Colorado has no statewide property tax. It is set and collected locally, and you claim the exemption through your county assessor, the county official who keeps property records and processes exemptions. That is why two neighbors in different counties can have different tax bills with the same benefit.

There is a second, parallel program that works almost the same way. The Senior Property Tax Exemption gives homeowners who are at least 65 years old on January 1, and who have owned and lived in the home for at least 10 years in a row, the same 50 percent break on the first $200,000 of actual value. The [Colorado Division of Property Taxation senior exemption page](https://dpt.colorado.gov/senior-property-tax-exemption) has the details. Here is the key point so you do not confuse the two: you cannot claim both on the same home in the same year. Pick the one that fits and file for that single exemption.

If you are deciding where in Colorado to land, our guides can help you picture local cost of living. See our roundup of [what military bases are in Colorado](/blog/what-military-bases-are-in-colorado), our [PCS to Fort Carson and Colorado Springs 2026 guide](/blog/pcs-to-fort-carson-colorado-springs-2026-guide), and our [Colorado Springs housing market update](/blog/colorado-springs-housing-market-update-october-2025) for one of the state's biggest military communities.

## Military Pay and Colorado State Income Tax

Colorado does have a state income tax, so how your military pay is treated matters. It uses a flat income tax rate, meaning the same rate applies to all taxable income rather than rising with higher earnings.

### The Flat Income Tax Rate

The statutory flat rate is 4.4 percent. In some recent years a temporary reduction has lowered it, such as to 4.25 percent, when the state collected revenue above its constitutional limit and returned the difference to taxpayers. Because the exact rate can shift from year to year, confirm the current figure on the [Colorado Department of Revenue individual income tax guide](https://tax.colorado.gov/individual-income-tax-guide).

### Military Retirement Subtraction

Colorado lets retired service members subtract part of their military retirement pay, and the amount depends on your age at the end of the tax year. If you are under age 55, you may subtract up to $15,000 of military retirement benefits for the 2026 tax year. The [Colorado Department of Revenue retired servicemembers page](https://tax.colorado.gov/retired-servicemembers) shows this limit, which has held at $15,000 since 2022.

If you are at least 55 years old, you use the broader pension and annuity subtraction instead. As the [Department of Revenue guidance on pensions and annuities](https://tax.colorado.gov/income-tax-topics-social-security-pensions-and-annuities) explains, that subtraction is generally up to $20,000 for ages 55 to 64 and up to $24,000 for ages 65 and older, and it covers pension and annuity income broadly, not just military retirement. Confirm the current figures before you file.

### VA Disability Compensation

One note many families miss: VA disability compensation is not taxed by Colorado. Because that compensation is not part of your federal taxable income, it is not part of your Colorado taxable income either.

## A Note for Military Spouses: MSRRA

If you are a military spouse, the MSRRA may matter to you. MSRRA stands for the Military Spouse Residency Relief Act, a federal law that lets a service member's spouse keep a home state for tax purposes even after a PCS move. You do not automatically become a Colorado resident just because your service member got orders here.

Under the federal rules Colorado follows, a service member and their spouse may choose, for state income tax, the service member's home state, the spouse's home state, or the service member's permanent duty station. If a spouse is not a Colorado resident and is here only to be with the service member, the wages they earn in Colorado are generally exempt from Colorado income tax. The [Department of Revenue military servicemembers page](https://tax.colorado.gov/income-tax-topics-military-servicemembers) explains the election and the affidavit a spouse gives their employer. Because residency choices affect both states' taxes, confirm yours before you file.

## How to Apply and Where to Verify

The Disabled Veteran Property Tax Exemption is overseen by CDMVA, short for the Colorado Department of Military and Veterans Affairs, through its Division of Veterans Affairs. But you file the completed application directly with your county assessor, not with the state, because applications mailed to the division can be delayed past the deadline. You attach a VA Benefit Summary Letter, sometimes called an award letter, showing your 100 percent permanent and total status. Gold Star spouses who do not have that letter can submit DD Form 1300, the Report of Casualty.

The filing window runs from January 1 to July 1 of the year you want the exemption, and a late application may be accepted through August 1 with good cause. Once granted, you do not reapply at the same address unless your VA status changes, but you must file again if you move. You can find the form on the [Division of Property Taxation page for senior and veteran exemptions](https://dpt.colorado.gov/property-tax-exemption-for-senior-citizens-and-veterans-with-a-disability). For the Senior Property Tax Exemption, the deadline is a little later, July 15, filed with the same county assessor.

When it is time to buy or sell, a local expert who knows Colorado helps. You can ask Jacob McCrackin, a VeteranPCS agent in Colorado Springs, for current listings and a sense of local tax rates.

If a VA loan is part of your plan, a home loan backed by the U.S. Department of Veterans Affairs, learn [what the benefits of a VA loan are](/blog/what-are-the-benefits-of-a-va-loan) and read our [complete guide to buying your first home with a VA loan](/blog/complete-guide-to-buying-your-first-home-with-a-va-loan). When you are ready, [connect with a VeteranPCS lender](https://www.veteranpcs.com/contact-lender) or [connect with our VeteranPCS network in Colorado](https://www.veteranpcs.com/colorado) to find an agent and a lender in one place.

## Frequently Asked Questions

### How much is the Colorado disabled veteran property tax exemption?

The state exempts 50 percent of the first $200,000 of your home's actual value, so up to $100,000 of value is removed before the tax is figured. It applies only to your primary residence. Confirm the current rule on the [Division of Property Taxation page](https://dpt.colorado.gov/property-tax-exemption-for-veterans-with-a-disability-and-gold-star-spouses).

### Do I have to be rated 100 percent to qualify?

In most cases you need a 100 percent permanent and total rating from the VA. Colorado also allows veterans with individual unemployability status, who are usually rated at least 70 percent but paid at the 100 percent rate, to qualify. There is no age requirement.

### Can a Gold Star spouse or surviving spouse get the exemption?

Yes. A Gold Star spouse, the surviving spouse of a service member who died in the line of duty or of a veteran whose death came from a service-related injury or disease, can qualify, and remarriage does not disqualify them. A surviving spouse of a veteran who already had the exemption can keep it if they have not remarried and still live in the home.

### Can I claim both the veteran exemption and the senior exemption?

No. Colorado allows only one exemption per home per tax year, even if you qualify for both. Choose the one that fits and file for that single exemption.

### Does Colorado tax military retirement pay?

It can, but the state allows a subtraction. Retirees under age 55 may subtract up to $15,000 of military retirement benefits for the 2026 tax year. Retirees 55 and older use the broader pension and annuity subtraction, generally up to $20,000 for ages 55 to 64 and up to $24,000 for ages 65 and older. Verify current amounts with the [Department of Revenue](https://tax.colorado.gov/retired-servicemembers) before you file.

This guide points you in the right direction; it does not replace personal advice. Your situation may have details a general article cannot cover, so consult a tax professional or attorney before making decisions based on these benefits. And because property tax is handled locally and the income tax figures can change each year, verify the current rules and amounts with your county assessor and with the state through the [Colorado Division of Veterans Affairs](https://vets.colorado.gov/property-tax-exemption) and the [Colorado Department of Revenue](https://tax.colorado.gov/individual-income-tax-guide).

_This content is for informational purposes. Consult a professional for personal financial decisions._