Disabled Veteran property tax exemption in Colorado
Program figures verified July 2026 — details change; confirm your scenario with us.
Colorado's Disabled Veteran Property Tax Exemption removes 50% of the first $200,000 of your home's actual value from taxation for Veterans rated 100% permanent-and-total — including, under Amendment G (effective tax year 2025), Veterans paid at 100% through individual unemployability. It is a partial exemption, not a full wipeout. This page walks through who qualifies and how to apply through your county assessor between January 1 and July 1.
How Colorado's disabled Veteran property tax exemption works
Colorado's program is structured differently from most states. Rather than exempting assessed value, it reduces the actual market value used in the calculation. The headline structure:
100% disability rating
A Veteran rated 100% permanent-and-total service-connected — or with VA individual unemployability status (Amendment G, effective tax year 2025) — receives a property tax exemption equal to 50% of the first $200,000 of actual home value. In a typical Colorado mill levy environment, this translates to roughly $450-$650 a year depending on the county.
Surviving spouse
The surviving spouse of an eligible disabled Veteran continues to receive the exemption as long as they own and occupy the property.
How to apply
Apply directly with your county assessor by July 1 for the exemption to apply in the following tax year. As of January 1, 2024, applications go to the county assessor, not the state Division of Veterans Affairs. Include your VA disability documentation. The exemption is not retroactive.
How this fits with your VA loan
When you buy a home in Colorado with a VA loan, your lender estimates property tax as part of your monthly payment (the T in PITI). If you qualify for the disabled Veteran exemption, that monthly tax escrow drops or zeroes out — which lowers your full monthly payment and improves your debt-to-income ratio. Some lenders are willing to use the post-exemption tax figure during underwriting; others want you to qualify on the pre-exemption number. Mike can structure this correctly during pre-approval so you do not lose buying power.
Common questions
Do I need to be 100% disabled to qualify?
Colorado exempts 50% of the first $200,000 of actual home value for Veterans rated 100% permanent-and-total — and, since Amendment G (effective tax year 2025), for Veterans with VA individual unemployability status. Lower schedular ratings without TDIU do not qualify.
What if my disability rating changes?
Rating changes can affect eligibility. If you become rated 100% after buying, you can apply for the exemption going forward (not retroactively in most cases). If your rating decreases below the qualifying threshold, the exemption ends.
Does the exemption transfer if I sell and buy a new home?
You typically need to reapply when you move. The exemption applies to your primary residence, so each new homestead requires a fresh application with the county.
What about my spouse if I pass away?
Colorado allows the surviving spouse to continue the exemption under specific conditions — see the detailed section above. Estate planning around this benefit is worth discussing with a Colorado attorney before any major decisions.
Does Colorado's Veteran property tax exemption extend to a surviving spouse?
Yes. Colorado's 2022 Amendment E extends the same 50% of the first $200,000 exemption to Gold Star spouses: the surviving spouse of a service member killed in the line of duty, or whose Veteran spouse's death was service-connected. The spouse must own and occupy the home as a primary residence, and remarriage ends eligibility to continue the exemption.
Do I apply to the State of Colorado or to my county assessor?
As of January 1, 2024, you apply directly with the assessor in the county where you live, not the state Division of Veterans Affairs or Division of Property Taxation. Some older county pages still reference the state agency; that guidance predates the 2024 process change. The deadline is July 1, and the exemption is not retroactive to prior years.
How is the exemption different from Colorado's property tax deferral program?
The exemption permanently cuts your taxable value — 50% of the first $200,000 — and is limited to a 100% permanent-and-total or individual-unemployability Veteran, or a Gold Star spouse. The separate deferral program lets seniors 65 and older and active-duty service members postpone paying property tax through a simple-interest loan repaid later. One is a reduction; the other is a loan.