Colorado State Veteran Benefits 2026: Complete Guide to Tax Exemptions, Education & Recreation Programs

Key Takeaways

• Property Tax Exemption Expanded: Following Amendment G (November 2024), veterans with Individual Unemployability (TDIU) status now qualify for the 50% property tax exemption on the first $200,000 of home value, joining those rated 100% permanently disabled
• New National Guard Tuition Waiver: Senate Bill 25-247 replaced the old Tuition Assistance program with a 100% tuition waiver at state institutions, effective July 1, 2025
• Military Retirement Pay: Colorado offers partial tax exemption—up to $15,000 for retirees under 55, and up to $24,000 for those 65 and older
• Free Hunting and Fishing: Disabled veterans (50%+ rating) receive a free lifetime combination small game and fishing license
• State Employment Preference: Veterans receive 5-10 bonus points on competitive state employment exams
• Five Veterans Community Living Centers: Colorado operates state veterans homes in Aurora, Florence, Homelake, Rifle, and Walsenburg

Table of Contents

• Property Tax Exemptions
• Income Tax Benefits
• Education Benefits
• Employment Preference
• Motor Vehicle Benefits
• Recreation Benefits
• Veterans Community Living Centers
• Burial Benefits
• How to Apply
• Frequently Asked Questions

Colorado ranks among the top states for veterans, with more than 400,000 veterans calling the Centennial State home. The state offers a comprehensive package of benefits covering property tax relief, education assistance, employment preference, and outdoor recreation. This guide covers every major Colorado veteran benefit program with 2026 updates, including the landmark changes from Amendment G and the new National Guard tuition waiver.

Property Tax Exemption

Colorado’s property tax exemption for veterans with disabilities is one of the most valuable state benefits, potentially saving qualifying homeowners hundreds of dollars annually. The program received a significant expansion in November 2024 when voters overwhelmingly approved Amendment G with 73% support.

What the Exemption Provides

Qualifying veterans and Gold Star spouses receive a 50% exemption on the first $200,000 of actual value of their primary residence. For example, a home valued at $400,000 would be taxed as if it were worth $300,000. Based on 2023 data, the average annual savings is approximately $600, though this varies by county.

Who Qualifies

Following Amendment G, the following individuals now qualify for the property tax exemption:

• 100% Permanently Disabled Veterans: Veterans with a service-connected disability rated as 100% permanent and total by the VA
• Individual Unemployability (TDIU) Veterans: NEW as of 2025 — Veterans who have been granted Individual Unemployability status by the VA, meaning they are unable to maintain substantially gainful employment due to service-connected disabilities
• Surviving Spouses: Un-remarried surviving spouses of veterans who previously received the exemption
• Gold Star Spouses: Surviving spouses of service members who died in the line of duty or whose death resulted from a service-related injury or disease

Requirements

• Must have owned and occupied the property as your primary residence since January 1 of the application year
• Must live in the residence at least 51% of the year
• Property may be held in a trust or legal entity for estate planning purposes
• Veterans temporarily in nursing homes or assisted living facilities may still qualify if the property remains unoccupied or occupied only by a spouse or dependent

How to Apply

Applications are submitted directly to your local county assessor between January 1 and July 1 each year. You will need:

• Completed application form (available from your county assessor or the Colorado Division of Property Taxation)
• VA Benefits Summary Letter showing your disability rating or unemployability status
• DD-214 showing honorable discharge

Once approved, you do not need to reapply annually unless your VA status changes or you move to a new property.

Income Tax Benefits

Colorado provides several income tax subtractions that benefit military retirees, survivors, and active-duty service members.

Military Retirement Pay

Retired service members may subtract a portion of their military retirement pay from Colorado taxable income. The amount depends on age:

• Under Age 55: Subtract up to $15,000 of military retirement benefits
• Ages 55-64: Subtract up to $20,000 (this uses the general pension/annuity subtraction)
• Ages 65 and Older: Subtract up to $24,000

Note that Colorado is among 13 states that tax military retirement partially. While not as favorable as states with full exemptions, these subtractions still provide meaningful tax relief.

VA Disability Compensation

VA disability compensation and Dependency and Indemnity Compensation (DIC) are completely tax-free at both the federal and state level. These payments do not need to be reported on Colorado tax returns.

Survivor Benefit Plan (SBP) Annuities

Survivors receiving SBP, RCSBP, or RSFPP annuities may claim subtractions:

• Under Age 65: Subtract up to $20,000
• Age 65 and Older: Subtract up to $24,000

Active-Duty Pay

Active-duty military pay is generally taxable in Colorado for residents. However, pay received while serving in a designated combat zone is exempt. Service members also receive an automatic 180-day extension to file taxes after leaving a combat zone.

Military Spouse Tax Relief

Under the Military Spouses Residency Relief Act (MSRRA), nonresident military spouses may be exempt from Colorado income tax on wages earned in Colorado if they moved to the state solely to accompany the service member stationed under military orders.

Education Benefits

Colorado offers robust education benefits for National Guard members, veterans, and their dependents, highlighted by the new 100% tuition waiver program that took effect in 2025.

Colorado National Guard Tuition Waiver (NEW 2025)

Senate Bill 25-247, signed by Governor Polis on May 1, 2025, replaced the old State Tuition Assistance program with a comprehensive tuition waiver. This is a significant upgrade from the previous program that capped assistance at $5,000 per semester.

What It Covers:

• 100% of tuition costs at Designated Institutions of Higher Education (DIHE) in Colorado
• Up to 65 credit hours at 2-year institutions
• Up to 130 credit hours at 4-year institutions
• Up to 145 combined credit hours total
• One postgraduate degree (Master’s, Doctoral, or Professional)
• One Certificate of Completion

What It Does NOT Cover:

• Mandatory fees
• Textbooks
• Room and board
• Other educational expenses

Eligibility Requirements:

• Active member of the Colorado Army or Air National Guard in good standing
• Completed Basic Training (if applicable)
• Accepted to a DIHE in Colorado
• Annual submission of FAFSA or CASFA (no aid required, just submission)
• Maintain minimum 2.0 GPA (undergraduate) or 3.0 GPA (graduate)
• ETS date on or after semester end date

Unlike the old program, there is no additional service obligation required for participation. Service members transferring from other states or components are immediately eligible with no waiting period.

For more information, visit the Colorado DMVA Tuition Waiver page.

In-State Tuition for Veterans and Families

Veterans, active-duty service members stationed in Colorado, and their dependents may qualify for in-state tuition at Colorado public colleges and universities, even without establishing Colorado residency. This includes those using Post-9/11 GI Bill or DEA (Chapter 35) benefits under Section 702 of the Choice Act.

Dependent Tuition Benefits

Children of certain veterans may qualify for tuition assistance:

• POW/MIA Dependents: Children of veterans who were prisoners of war or missing in action, who don’t otherwise qualify for federal education benefits, receive a tuition waiver to state schools
• Guard Death/Disability Dependents: Children of National Guard members who died or were permanently disabled while on active state duty receive tuition waivers

Veterans High School Diploma Program

Colorado offers honorary high school diplomas to veterans who left school to serve in World War II, Korea, or Vietnam. Applicants must be at least 60 years old, not have a high school diploma, and reside (or have resided) in the school district from which they seek the diploma.

Employment Preference

Colorado provides meaningful employment advantages for veterans seeking state jobs and has also created a framework for private employers to implement veterans hiring preferences.

State Employment Veterans’ Preference

When applying for state employment in Colorado, eligible veterans and spouses receive bonus points added to their passing score on competitive examinations:

• 10 Points: Veterans with service-connected disabilities receiving VA compensation or disability retirement benefits
• 5 Points: Non-disabled veterans who served on active duty during specified periods
• 5 Points: Surviving spouses of veterans who would have qualified or who died due to service-connected conditions
• 5 Points: Spouses of veterans unable to work due to service-connected disabilities

Important: Veterans’ preference applies only to initial hiring, not to promotional opportunities within state government.

To claim preference, attach your DD-214 (Member 4) showing character of service to your application. Disabled veterans should also include a letter from the VA showing service-connected disability.

Private Employer Veterans’ Preference

Colorado law (HB21-1065) allows private employers to adopt veterans hiring preference policies without violating employment discrimination laws. Private employers may give preference to:

• Veterans of the armed forces or National Guard
• Veterans discharged within the last 5 years
• Veterans with disabilities (within 10 years of discharge)
• Spouses of veterans killed in the line of duty (within 5 years of death)

Workforce Center Services

The Colorado Department of Labor and Employment provides free employment services through Veteran Employment Representatives at Workforce Centers across the state. Services include job search assistance, resume preparation, interview coaching, and training programs. Veterans who served at least one day of active duty receive priority access to job listings and services.

Professional License Portability

Military spouses who relocate to Colorado under military orders can practice certain licensed professions for up to 12 months if they hold an active license in good standing from another state.

Motor Vehicle Benefits

Colorado offers several license plate options and fee exemptions for veterans, with the most substantial benefits going to disabled veterans and recipients of military valor awards.

Disabled Veteran License Plates

Veterans with qualifying disabilities may receive one free set of Disabled Veteran license plates. Requirements include:

• Service-connected disability rated at 50% or more by the VA
• Permanent disability status
• Physical impairment verified by a licensed physician (for plates with handicapped parking privileges)

Fee Exemptions: One vehicle with Disabled Veteran plates is exempt from registration fees and specific ownership tax (Colorado’s annual vehicle property tax). This applies to passenger cars, trucks under 16,000 pounds, motorcycles, motor homes, and recreational vehicles.

Other Fee-Exempt Military Plates

The following special plates are issued at no charge for one vehicle:

• Purple Heart
• Medal of Honor
• Former Prisoner of War
• Air Force Cross
• Distinguished Service Cross
• Navy Cross
• Silver Star
• Distinguished Flying Cross
• Pearl Harbor Survivor

Standard Veteran License Plates

Honorably discharged veterans from any branch may obtain veteran license plates for a one-time fee of $50 (in addition to standard registration fees and taxes). Branch-specific plates are available for Army, Navy, Air Force, Marines, Coast Guard, and Space Force, plus specialty plates like Submarine Service.

Active Duty Exemption

Nonresident active-duty service members stationed in Colorado are exempt from Colorado specific ownership tax on their vehicles. Complete Form DR2667 (Affidavit of Non-residence and Military Service) when registering your vehicle.

Recreation Benefits

Colorado offers some of the nation’s best outdoor recreation benefits for veterans, from free state park access to lifetime hunting and fishing licenses.

State Parks Access

• Disabled Veteran and Purple Heart Plates: Vehicles displaying these plates receive free admission to all Colorado state parks year-round. The plate owner must be present in the vehicle.
• August Free Admission: All active-duty members and veterans are admitted free to Colorado state parks during the entire month of August. Obtain a free pass from any state park or CPW office by showing proof of military service.
• Veterans Day Free Admission: Free park admission for veterans and active-duty on November 11. Show DD-214 or military photo ID.
• Independence Pass: Colorado resident disabled veterans may apply for a free Independence Pass, providing unlimited access to all state parks. Veterans over 64 with the Independence Pass also qualify for $3 camping discounts Sunday through Thursday.

Hunting and Fishing Licenses

Free Lifetime Combination License: Colorado residents who are disabled veterans or Purple Heart recipients may receive a free lifetime combination small game hunting and fishing license. Requirements:

• Colorado residency
• Service-connected disability rated at 50% or more (some sources indicate 60% or higher), OR
• Purple Heart recipient

Apply through Colorado Parks and Wildlife. The license includes small game hunting and fishing—big game requires separate licenses obtained through the draw process.

Free Fishing for Totally Disabled Veterans: Any permanently and totally disabled veteran who is a resident patient at a military or VA medical facility in Colorado receives a free fishing license.

Active-Duty Resident Rates: Active-duty service members stationed in Colorado under permanent orders, and their dependents, may purchase hunting and fishing licenses at Colorado resident rates.

Leave Fishing Exemption: Colorado residents serving on active duty and permanently stationed outside the state may fish without a license while home on leave (up to 30 days per year). Carry your leave papers while fishing.

Special Hunting Programs

• Wounded Warrior Big Game Program: Colorado Parks and Wildlife sets aside 100 free big game licenses (deer, elk, pronghorn) for members of the Wounded Warrior or Safe Harbor programs. Contact CPW at 303-291-7235 for information.
• Deployed Service Member Preference Points: Service members deployed outside the U.S. can receive preference points for hunting draws that occurred during their deployment. Submit the Military Preference Point Request Form within 6 months of returning.
• Military Waterfowl Season: A special waterfowl hunting season is restricted to veterans and active-duty military, including National Guard and Reserve members.

Veterans Community Living Centers

Colorado operates five Veterans Community Living Centers (VCLCs) across the state, providing skilled nursing care, rehabilitation, and other services to veterans and their families.

Locations

• Veterans Community Living Center at Fitzsimons — 1919 Quentin St., Aurora, CO 80045 | Phone: 720-857-6400
• Bruce McCandless Veterans Community Living Center — Florence, CO
• Veterans Community Living Center at Homelake — 3749 Sherman Ave., Monte Vista, CO 81144 | Phone: 719-852-5118
• Veterans Community Living Center at Rifle — Rifle, CO
• Spanish Peaks Veterans Community Living Center — Walsenburg, CO

Services

• Long-term care: Skilled nursing care with 24-hour coverage, physician services, physical/occupational/speech therapy, social activities, and daily living assistance
• Short-term rehabilitation: Medicare-certified rehab services for those recovering from hospital stays
• Memory care: Specialized dementia and Alzheimer’s care, with secure neighborhoods at Fitzsimons, Florence, Rifle, and Walsenburg
• Domiciliary cottages: Homelake offers 48 assisted living-style cottages for those not requiring 24-hour nursing care
• Respite care: Short-term stays to provide relief for home caregivers
• Hospice/end-of-life care: Comfort-oriented care with family support

Eligibility

Admission is open to:

• Honorably discharged veterans
• Veterans’ spouses and widows
• Gold Star parents (parents who lost a child serving in the armed forces)

Applicants must also meet medical criteria. Colorado’s VCLCs consistently exceed national averages for registered nurse staffing hours. For more information, contact the Colorado Department of Human Services.

Burial Benefits

Colorado provides burial options through both state and national veterans cemeteries.

State Veterans Cemeteries

• Veterans Memorial Cemetery of Western Colorado — 2830 Riverside Parkway, Grand Junction, CO 81501 | Open dawn to dusk daily; office hours Monday-Friday 8am-4:30pm
• Colorado State Veterans Center at Homelake Cemetery — Monte Vista, CO

Eligibility mirrors VA national cemetery requirements but includes a Colorado residency requirement. Veterans may pre-register for eligibility determination before the time of need.

National Cemeteries

Colorado has three VA national cemeteries:

• Fort Logan National Cemetery — Denver (limited to subsequent interments in existing gravesites)
• Fort Lyon National Cemetery — Las Animas
• Pikes Peak National Cemetery — Colorado Springs (newer facility serving southern Colorado)

Burial Benefits

Eligible veterans buried in national or state veterans cemeteries receive at no cost:

• Gravesite
• Opening and closing of the grave
• Perpetual care
• Government headstone or marker
• Burial flag
• Presidential Memorial Certificate

To schedule burial at a VA national cemetery, call the National Cemetery Scheduling Office at 800-535-1117.

How to Apply for Colorado Veteran Benefits

The best starting point for any Colorado veteran benefit is your local County Veterans Service Officer (CVSO). These trained specialists provide free assistance with claims, applications, and appeals to the VA. They can also help you understand and access state and local benefits.

Colorado Division of Veterans Affairs

Address: 1355 S. Colorado Blvd., Building C, Suite 113, Denver, CO 80222
Phone: 303-284-6077
Website: vets.colorado.gov

Key Deadlines

• Property Tax Exemption: January 1 – July 1 annually (applications submitted to county assessor)
• National Guard Tuition Waiver: Deadlines vary by semester; check with your CONG Education Office

Documents to Have Ready

• DD-214 (Member 4 copy showing character of service)
• VA Benefits Summary Letter
• VA disability rating decision letter (if applicable)
• Colorado driver’s license or state ID
• Proof of Colorado residency

Frequently Asked Questions

Disclaimer: This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Department of Defense, VA, or any government agency. For official benefit information, please visit the Colorado Division of Veterans Affairs or contact your local County Veterans Service Officer.

Sources: Colorado Division of Veterans Affairs, MyArmyBenefits, Colorado DMVA, Colorado Parks and Wildlife, Colorado Division of Property Taxation, Ballotpedia