Beyond your federal VA disability compensation, Colorado offers its own benefits for veterans — property tax, income tax, education, employment, vehicle, recreation, veterans home, financial. Here's what Colorado veterans can claim, who qualifies, and how to apply.
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Exempts 50% of the first $200,000 of the actual value of a qualifying disabled veteran's owner-occupied primary residence (maximum value reduction of $100,000). Veteran must have a 100% permanent and total (P&T) service-connected disability rating, OR a 100% rating based on individual unemployability (IU), from the VA, and must have owned/occupied the home as primary residence since Jan 1 of the tax year. Apply through the county assessor (CDVA-administered) by July 1. Surviving spouses of qualifying veterans, and Gold Star spouses of servicemembers who died in the line of duty, may also qualify.
Colorado partially exempts military retirement pay via an age-based pension/annuity subtraction: up to $20,000 (ages 55-64) and up to $24,000 (age 65+) of retirement income may be subtracted from Colorado taxable income. Retired servicemembers UNDER age 55 may subtract up to $15,000 of military retirement income (tax years 2022-2028; cap scheduled to increase in later years). Not a full exemption.
VA disability compensation and DIC are excluded from federal taxable income, which is the starting point for Colorado income tax, so they are not subject to Colorado state income tax. No reporting required.
Pays up to 100% of tuition at a Designated Institution of Higher Education for qualifying Colorado National Guard members in good standing who have completed basic training and meet ETS/credit-hour requirements. Credit caps apply (e.g., 65 hrs for a 2-year program, 130 hrs for a 4-year program). This is a Guard benefit, not a general veteran benefit; no VA rating required.
For Colorado state government hiring, honorably discharged veterans who served during a war/armed conflict receive 5 added preference points; veterans with a compensable service-connected disability receive 10 added preference points. Private employers are also authorized to adopt voluntary written veterans-preference policies.
Veterans with a 50% or greater permanent service-connected disability rating (or who have lost/lost the use of one or both hands or feet, or have permanent vision loss in both eyes) qualify for a Disabled Veteran license plate with an exemption from registration fees on one set of plates. Additional plate sets carry a one-time $50 fee plus applicable taxes/fees. Requires DD214 (honorable discharge) and VA certification.
Colorado Parks & Wildlife issues a free Lifetime Fishing License or a free Lifetime Fishing + Small Game Hunting Combination ('VA combo') license to resident veterans with a 50% or greater service-connected disability rating, and to Purple Heart recipients. VA combo holders are exempt from the annual Habitat Stamp. Valid as long as Colorado residency is maintained.
Colorado operates five Veterans Community Living Centers offering long-term skilled nursing, short-term rehab, assisted living/domiciliary (Homelake), memory care, hospice, and respite care. Eligibility: honorably discharged veterans, their spouses/surviving spouses, and Gold Star parents. Locations: Fitzsimons (Aurora), Bruce McCandless (Florence), Homelake (Monte Vista), Rifle, and Spanish Peaks (Walsenburg).
State grant fund providing financial assistance to families of Colorado National Guard members and reservists who experience income loss or unexpected expenses as a result of mobilization/deployment to active duty. Administered by the Colorado Division of Veterans Affairs / Dept. of Military and Veterans Affairs.
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Colorado offers veteran benefits across property tax, income tax, education, employment, vehicle, recreation, veterans home, financial. Highlights include Disabled Veteran Property Tax Exemption (Homestead), Military Retirement Pay Income Tax Subtraction (age-based), VA Disability Compensation Not Taxed. Eligibility varies — some benefits require a VA disability rating, 100% P&T status, or combat service.
Exempts 50% of the first $200,000 of the actual value of a qualifying disabled veteran's owner-occupied primary residence (maximum value reduction of $100,000). Veteran must have a 100% permanent and total (P&T) service-connected disability rating, OR a 100% rating based on individual unemployabilit
Colorado partially exempts military retirement pay via an age-based pension/annuity subtraction: up to $20,000 (ages 55-64) and up to $24,000 (age 65+) of retirement income may be subtracted from Colorado taxable income. Retired servicemembers UNDER age 55 may subtract up to $15,000 of military reti
Many state benefits are tied to your VA disability rating — the higher your rating, the more you may qualify for. Use the free VA Ready calculator to confirm your combined rating, then check which state benefits you've earned.