Information for Veterans
What is the Disabled Veterans Property Tax Exemption?
The Disabled Veterans Property Tax Exemption came out of an amendment to the Colorado Constitution which changed the Senior Property Tax Exemption to include disabled veterans. The exemption provides disabled veterans and surviving spouses of previously qualified disabled veterans with a reduction in the amount they pay in taxes on their primary residence.
If you qualify for the exemption, it does not reduce your tax rate, but instead reduces the taxable value of your property. In other words, it reduces the amount that you pay taxes on, not the percentage that you pay in taxes.
The state reimburses the county treasurer for the exempted property tax. The amount subject to exemption may be revised upward or downward by the state legislature. The legislature also has the ability to end the program at any time. The program is governed and funded by the legislature. Assessors’ Offices only administer the program. It is important to note that the Disabled Veterans Property Tax Exemption and the Senior Property Tax Exemption cannot both be applied to the same property.
How is the Disabled Veterans Property Tax Exemption calculated?
As of 2020, the taxable value of the property is reduced by 50 percent of the first $200,000 of value. For example:
- If the assessor’s taxable value of your home is $150,000, the full value is within the first $200,000, so the taxable value of the property will be reduced by 50 percent of $150,000, or $75,000. After the reduction, the taxable value of the property will be $75,000.
- In the example above, your total savings would be 50 percent for the year - an exemption credit of $536.25 ($1072.50 in taxes without the exemption and $536.25 with the exemption credit), based on a mill levy of 100.000.
- If the assessor’s taxable value of your home is $400,000, the taxable value will be reduced by 50 percent of the first $200,000, or $100,000. After the reduction, the taxable value of the property will be $300,000.
- In the example above, you would be receiving the maximum exemption credit possible for the year - an exemption credit of $715.00 ($2,145.00 in taxes with the exemption compared to $2,860.00 without the exemption), based on a mill levy of 100.000.
To be eligible for the exemption, you must either be a qualifying disabled veteran or the surviving spouse of a disabled veteran who previously applied and qualified.
Qualifying Disabled Veterans
- You must have sustained a service-connected disability while serving on active duty in the Armed Forces of the United States. This includes members of the National Guard and Reserves who sustained their injury during a period in which they were called to active duty.
- You must have been honorably discharged.
- The United States Department of Veterans Affairs must have rated the service-connected disability as one hundred percent permanent and total.
- You or your spouse must be the owner of record.
- Owner of record means an individual whose name appears on a valid recorded deed to residential real property as an owner of the property.
- The title can be held individually, as joint tenants, or as tenants in common. You can also qualify if you hold a life estate in the property.
- You must have been the owner of record and occupied the property as your primary residence since January 1 of the year of application and continue to do so.
- The property must be classified as residential.
Exceptions to Occupancy and Ownership Requirements
If you meet most of the requirements in the “Qualifying Disabled Veterans” section above, but do not meet an occupancy or ownership requirement, check the application found on this page or from the Colorado Division of Veterans Affairs to see exceptions that may apply to you.
Surviving Spouse of a Disabled Veteran Who Previously Qualified
In some cases, the surviving spouse of a disabled veteran may be qualified for the exemption. For more information, check the surviving spouse application found on this page or from the Colorado Division of Veterans Affairs. The requirements you must meet to qualify are:
- The applicant must be the owner-occupier of the property.
- The applicant must be the surviving spouse of a veteran who passed away prior to January 1 of the current year.
- The veteran to whom the applicant was married must have applied for and been granted the disabled veterans property tax exemption prior to his or her death.
You must apply by July 1 of the year in which you seek to gain the exemption. Applications and instructions can be downloaded from the "Related Documents" section of this page or on the Colorado Division of Veterans Affairs’ website, listed below. To apply, please submit your application to the Colorado Division of Veterans Affairs, which can be contacted at:
Colorado Department of Military and Veterans Affairs
Division of Veterans Affairs
1355 South Colorado Blvd. Bldg. C Ste 113
Denver, CO 80222
For any questions, please check our FAQ page or contact the Colorado Division of Veterans Affairs using the contact information listed above.