Colorado veteran state benefits

Read this first

Colorado rules change, and where Colorado agencies describe a program differently, this page says so. Dollar amounts and income limits are the ones printed on the official pages on October 15, 2026, for the year named. Confirm the current number with the agency before you file. This page covers state benefits only. See the federal side on our VA disability tax page.

1. Property tax exemption

• Amount: 50% of the first $200,000 of the actual value of your primary residence is exempt, and the state reimburses the county. The pages show no tax year for the $200,000 figure.
• Who: a service-connected disability rated 100% and permanent, or individual unemployability status. The Division of Property Taxation also lists active duty and an honorable discharge. The veterans page FAQ lists at least 24 months of active duty, which the other page does not mention.
• Home: you must be the owner of record, and have occupied it, since January 1 of the application year.
• How: apply to your county assessor between January 1 and July 1. The Division says late applications may be accepted through August 1 for good cause. The veterans page says applications received after July 1 are typically destroyed. The exemption cannot cover a year before the one you first file.
• Surviving spouse: may apply to keep the same exemption.
• Under 100%: a 2021 bill to extend it to 50% rated veterans was postponed indefinitely.

Sources: Colorado veterans: property tax exemption, Division of Property Taxation, HCR21-1001

2. Disabled Veteran license plate

• Who: 50% or more service-connected disabled (also loss of use of one or both hands or feet, or loss of sight in both eyes). You need a VA letter or benefits summary and proof of honorable discharge such as the DD-214. The veteran must be on the title as owner, co-owner, trust beneficiary or lessee.
• Cost: one set is exempt from fees. A second or additional set is a one-time $50.
• HB20-1190 may allow the ownership tax and fee exemption without the plate. I could not confirm that it became law.

Sources: Colorado DMV: military plates, plate checklist

3. Parking

The standard Disabled Veteran plate does not give disabled parking privileges. The DMV says so directly.

Colorado has a separate "Disabled Veteran Handicapped" plate that does. It needs a physical impairment affecting mobility, application DR2219, and verification by a Colorado-licensed physician (or other listed verifier). I did not find a fee for it. Placards (three-year and temporary) are also listed.

Sources: handicap plate checklist, DMV: persons with disabilities

4. Hunting and fishing

• Who: disabled veterans who are Colorado residents with proof of a service-connected disability of 50% or more from the VA. Purple Heart recipients also qualify.
• What: Colorado Parks and Wildlife offers a free Lifetime Fishing License to veterans with a service-connected disability, and a lifetime fishing and small game combo. VA combo holders are exempt from the annual Habitat Stamp for fishing. The page states no fee for the combo.
• Not found: I found no free or discounted big game licenses or tags for disabled veterans.

Sources: CPW: military hunters, CPW: fishing licenses

5. State parks: the Independence Parks Pass

• Cost: no cost. It gives unlimited access to all Colorado state parks.
• Who: Colorado residents receiving VA compensation for a 50% or greater disability (combined rating counts), loss of use of one or both hands or feet, or permanent loss of vision in both eyes, with a VA letter confirming a discharge under conditions other than dishonorable. Purple Heart recipients qualify too.
• Camping: no campground fee waiver. Holders 64 or older get $3 off per night Sunday through Thursday, not on weekends, holidays, cabins or yurts.
• Renewal: valid 12 months. Allow about 15 business days to process.

Source: CPW: park specialty passes

6. State income tax on military retirement and VA pay

• Under 55 at year end: a military retirement subtraction of up to $15,000 (tax years 2022 through 2028), or your taxable military retirement, whichever is smaller.
• 55 and older: the regular pension subtraction applies instead: up to $20,000 (age 55 to 64) or $24,000 (age 65 and older), per the 2025 booklet. Social Security has its own subtraction.
• Old page: a Revenue page called Retirees still lists tax year 2022 figures and says 55 and older do not qualify for the military subtraction. A February 2025 Revenue publication says otherwise. I followed the newer one. I did not find 2026 figures.
• VA disability: I did not find an official Colorado statement on its state tax treatment. The 2025 booklet shows no VA disability subtraction line.
• Disability Assistance Credit: $400 to $1,200 with 2025 AGI limits of $20,000 single and $32,000 joint. VA award letters must show 50% or more.

Sources: Revenue: retired servicemembers, 2025 Colorado income tax booklet, Revenue: military servicemembers (Feb 2025)

Where to go

• Colorado Division of Veterans Affairs
• Division of Property Taxation and your county assessor
• Colorado DMV
• Colorado Parks and Wildlife
• Colorado Department of Revenue