What property tax exemption can Colorado veterans get?

Colorado offers a property tax exemption for veterans who have a 100% permanent service-connected disability rating from the U.S. Department of Veterans Affairs. If you qualify, 50% of the first $200,000 of actual value of your primary residence is exempt from property taxation. On a $200,000 home, that means roughly $100,000 of assessed value comes off the table which can lower your annual property tax bill by several hundred dollars or more, depending on your county's mill levy.

Surviving spouses of veterans who died in the line of duty or from a service-connected disability may also qualify for this exemption, as long as they have not remarried.

Who qualifies for the Colorado disabled veteran property tax exemption?

To be eligible, you must meet all of the following conditions:

  • You are a veteran with a 100% permanent and total service-connected disability as rated by the VA.
  • You were honorably discharged from active military service.
  • You are a legal resident of Colorado.
  • The property is your primary residence meaning you occupy it as your main home.
  • You own the property or hold a legal interest in it (such as a beneficial interest in a trust).

There is no age requirement, and it does not matter which branch of the military you served in. The exemption applies only to your primary residence not to rental properties, second homes, or vacant land.

How much money does the exemption actually save?

The exemption reduces the assessed value of your home by 50% of the first $200,000 in actual value. Since Colorado assesses residential property at roughly 6.765% of actual value (this rate can change by legislation), the math works out like this:

  • Home valued at $200,000 → $100,000 exempted from actual value → approximately $6,765 removed from assessed value.
  • Home valued at $400,000 → the exemption still caps at 50% of $200,000, so $100,000 is exempted from actual value.

Your actual dollar savings depend on your local mill levy, which varies by county, school district, and special districts. In areas with higher mill levies, the savings are greater.

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

You apply through your county assessor's office. The process looks like this:

  1. Obtain the application form from your county assessor's website or office. The form is often called the "Disabled Veteran Exemption Application" or something similar.
  2. Provide proof of your VA disability rating typically a VA award letter confirming your 100% permanent and total service-connected disability.
  3. Submit proof of honorable discharge (DD-214) and Colorado residency.
  4. File the application with the county assessor.

You only need to apply once. Once approved, the exemption remains in effect for as long as you continue to own and occupy the property and maintain eligibility. However, if you move or your disability rating changes, you need to reapply or notify the assessor.

What documents do you need to apply?

Have these ready when you file:

  • Completed application form from your county assessor
  • VA rating decision letter showing 100% permanent and total service-connected disability
  • DD-214 (Certificate of Release or Discharge) showing honorable discharge
  • Proof that the property is your primary residence (utility bills, Colorado driver's license, voter registration, etc.)
  • Deed, title, or other proof of property ownership

If you are a surviving spouse applying, you will also need the veteran's death certificate and documentation linking the death to military service or a service-connected condition.

What is the deadline to apply?

There is no single statewide deadline that applies uniformly across all Colorado counties. Most county assessors accept applications year-round, but submitting your application before January 1 of the tax year you want the exemption applied ensures it takes effect for that year's assessment. Some counties may have specific cutoff dates, so call your county assessor directly to confirm.

Does this exemption apply if you receive VA compensation or pension?

The property tax exemption is based on your disability rating, not on whether you receive VA compensation payments. Veterans rated 100% permanent and total qualify regardless of the specific VA benefit they receive. If you also receive VA disability compensation, you may want to look at other state-level benefits that relate to tax exemptions connected to VA compensation, which vary from state to state.

What if your disability rating is less than 100%?

Colorado's property tax exemption specifically requires a 100% permanent and total service-connected disability rating. Veterans with lower ratings such as 50% or 70% do not currently qualify for this particular exemption. However, some other states offer tiered exemptions based on disability percentage. For example, Missouri's veteran property tax relief program uses different eligibility rules that may help if your rating is below 100%.

Does the exemption cover all types of property taxes?

The exemption applies to ad valorem property taxes assessed by your county on your primary residence. This includes taxes levied by the county, school district, and special districts. It does not apply to:

Common mistakes Colorado veterans make with this exemption

Not applying at all. The exemption is not automatic. The county assessor will not apply it unless you file the paperwork. Many eligible veterans miss out simply because they did not know the exemption existed or assumed it was included in their VA benefits.

Confusing the disability rating requirement. Colorado requires a 100% permanent and total rating. If your rating is 100% but not considered permanent for example, a temporary 100% rating for a recovery period you may not qualify. Make sure your VA letter specifies "permanent and total."

Forgetting to update after moving. The exemption is tied to your primary residence. If you move within Colorado, you need to refile with the new county assessor's office.

Missing secondary benefits. Veterans with service-connected disabilities may also qualify for home adaptation grants. If your disability requires modifications to your home, federal programs may help learn more about tax exemptions available for adaptive housing improvements. Some states also offer benefits for energy efficiency upgrades, like the tax exemptions for energy-efficient home improvements that certain veteran homeowners can use.

Can both spouses claim the exemption?

If both spouses are veterans and each holds a 100% permanent and total disability rating, they may both be listed on the application. However, the exemption applies to one primary residence you cannot double the exemption on the same property.

Where to get help applying

If you need assistance with your application, these resources can help:

  • Your county assessor's office the primary point of contact for filing and questions
  • The Colorado Division of Veterans Affairs can help confirm your eligibility and connect you with county-level contacts
  • A Veterans Service Officer (VSO) free assistance from accredited representatives who can help with paperwork
  • The VA's eBenefits portal at ebenefits.va.gov for obtaining your disability rating letter

Quick checklist before you apply

  • Confirm your VA disability rating is 100% permanent and total check your most recent VA award letter
  • Verify the property is your primary residence in Colorado
  • Gather your DD-214 and proof of honorable discharge
  • Contact your county assessor to get the current application form
  • Submit your application well before January 1 to ensure it applies for the upcoming tax year
  • Keep a copy of everything you file for your records
  • If you move, refile with the new county immediately

Next step: Call your county assessor's office this week, ask specifically about the disabled veteran property tax exemption application, and confirm any county-specific documentation requirements before you submit. Getting the right paperwork together the first time saves you a second trip.