Colorado veteran taxes

Military retired pay in Colorado

Partly exempttax year 2025Sources 1, 2, 3

A retired servicemember under age 55 at the end of the tax year may subtract up to $15,000 of military retirement benefits for tax years 2022 through 2028. At age 55 or older the retiree uses the regular pension and annuity subtraction instead, generally limited to $20,000 a year, or $24,000 at age 65 or older; any Social Security subtraction reduces that limit.

Survivor Benefit Plan annuities

Check with the stateSource 2

The Department of Revenue’s guidance does not name Survivor Benefit Plan annuities. Its pension guidance lets a taxpayer under age 55 who receives pension and annuity benefits due to the death of the person originally entitled to them subtract up to $20,000, and taxpayers 55 or older use the regular pension and annuity subtraction; it does not say whether SBP annuities count as such death benefits or qualify for the military retirement subtraction.

Property tax relief for disabled veterans

Exemption or creditSources 4, 5

Colorado exempts 50 percent of the first $200,000 of actual value of the primary residence of an honorably discharged veteran with a service-connected disability rated 100% and permanent by the VA, or with individual unemployability status. The applicant must have owned and occupied the home as a primary residence since January 1 of the application year, and applies to the county assessor between January 1 and July 1 with a VA Benefit Summary Letter.

• Who: service-connected 100% permanent rating, a 100% permanent disability retirement from the military departments or Homeland Security, or VA individual unemployability; no age requirement.
• Amount: 50 percent of the first $200,000 of actual value of the primary residence.
• Once granted, no reapplication from the same address unless the VA status changes; a move requires a new application.
• The Division of Veterans Affairs FAQ also lists at least 24 months of active duty (National Guard members called to active service included) with an honorable discharge, individual unemployability at a rating of at least 70% paid at the 100% rate, and living in the home at least 51% of the year.

Vehicle registration for disabled veterans

Fee waiver or discountSource 6

The Colorado Division of Veterans Affairs states that qualifying veterans may apply through the Division of Motor Vehicles for one free Disabled Veteran Plate, with an eligibility letter showing a service-connected disability of 50% or greater and a DD214 showing honorable discharge. The page does not say which registration fees or taxes are waived.

• One free Disabled Veteran Plate; designs vary by branch of service and awards.
• Applications go to the local county motor vehicle office.