TDIU Veterans: Colorado Property Tax Exemption Now Available

Colorado Veteran 100% Disability Exemption: $200,000 Home Value Guide

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Colorado offers qualifying 100% permanent and totally disabled veterans a property tax exemption on 50% of the first $200,000 of their primary residence’s actual value. This means up to $100,000 of your home’s value is exempt from property taxes. The exemption typically saves eligible veterans $500–$700+ annually. Applications are submitted to your county assessor with a July 1 deadline.

Quick Facts

What Is the Colorado Disabled Veterans Property Tax Exemption?

The Colorado Disabled Veterans Property Tax Exemption is a state constitutional benefit established under Article X, Section 3.5 of the Colorado Constitution . It reduces property taxes for qualifying veterans by exempting 50% of the first $200,000 of a home’s actual (market) value from taxation.

How it works: For a home valued at $200,000, the exemption removes $100,000 from the taxable value. For a $300,000 home, the first $200,000 is partially exempted ($100,000 exemption), and the remaining $100,000 is taxed normally.

Why it matters: This exemption provides meaningful annual savings that compound over years of homeownership. In Colorado’s appreciating real estate market, the $100,000 exemption translates to approximately $500–$700+ in property tax savings each year .

What veterans should do next: Determine if you qualify and submit your application to your county assessor before the July 1 deadline.

Who Qualifies for the Colorado Veteran Property Tax Exemption?

Eligibility Requirements

To qualify for the Colorado disabled veterans property tax exemption, you must meet all of the following criteria :

1. VA Disability Rating
You must have received a service-connected disability rating from the U.S. Department of Veterans Affairs as either:

• 100% Permanent and Total (P&T) — The VA has determined your service-connected disability is total and permanent

• Individual Unemployability (TDIU) status — Added by Amendment G, passed in November 2024, for veterans unable to work due to service-connected disabilities 

2. Ownership and Occupancy
You must have owned and occupied the property as your primary residence since January 1 of the application year . Multiple property owners may designate only one property for the exemption — your primary residence.

3. Honorably Discharged
You must have received an honorable discharge from military service.

Surviving Spouse Eligibility

The surviving spouse (Gold Star spouse) of a qualifying disabled veteran who previously received the exemption may continue the benefit if :

• The veteran died on or after January 1, 2009

• The surviving spouse has not remarried

• The surviving spouse meets other statutory requirements

Surviving spouses of service members killed in the line of duty also qualify for the tax break .

Comparison: Who Qualifies Under Current Law vs. Amendment G

How the Exemption Affects Your Property Tax Bill

Colorado Property Tax Calculation

Colorado calculates property taxes using a two-step process :

1. Actual Value — The county assessor determines your home’s market value

2. Assessment Rate — The state applies a residential assessment rate (6.765% in 2025) to determine assessed value

3. Mill Levy — Local governments apply mill levies (tax rates expressed per $1,000 of assessed value)

How the Exemption Saves You Money

The exemption reduces your home’s actual value by up to $100,000 before the assessment rate and mill levy are applied .

Example Calculation (El Paso County, 2025):

Estimated Annual Savings by County

Based on $100,000 actual value exemption and 2025 assessment rate of 6.765% 

How to Apply for the Colorado Disabled Veterans Exemption

Step-by-Step Application Process

Step 1: Confirm Your Eligibility
Review your VA decision letter to verify you have either a 100% Permanent & Total rating or TDIU status. Your VA award letter will state your rating and whether it’s permanent and total.

Step 2: Obtain the Application Form
Download the Disabled Veterans Exemption Application from:

• Your county assessor’s website

• The Colorado Division of Property Taxation website (dpt.colorado.gov) 

Step 3: Complete the Application
Fill out all sections completely. Have your VA decision letter available to verify your disability rating.

Step 4: Submit to Your County Assessor
Important: As of January 1, 2024, all veteran property tax exemption applications must be submitted to your county assessor, NOT to the Division of Property Taxation or the Department of Veterans Affairs . Applications sent to the wrong address may be delayed or rejected.

Step 5: Meet the Deadline
The filing deadline is July 1 in the tax year of application .

Required Documents

• Completed Disabled Veterans Exemption Application

• VA decision letter showing 100% Permanent & Total disability rating OR TDIU status

• Proof of ownership and occupancy

• Valid U.S. military identification card with photograph OR VA Veterans Health Administration ID card with photograph 

Once Approved

The exemption remains in effect for subsequent years as long as :

• You continue to own the property

• You continue to occupy the property as your primary residence

• You do not transfer the property into a trust, LLC, or other legal entity (which may require a new application)

Amendment G: What Changed for TDIU Veterans

What Is Amendment G?

In November 2024, Colorado voters overwhelmingly approved Amendment G, expanding the disabled veterans property tax exemption to include veterans with Individual Unemployability (TDIU) status .

What this means: Previously, only veterans with a 100% Permanent & Total disability rating qualified for the exemption. Starting with the 2025 property tax year (taxes paid in 2026), veterans who have been awarded TDIU by the VA can also claim the exemption .

Who does this affect? Approximately 3,700 Colorado veterans who are unable to work due to service-connected disabilities but do not have a 100% P&T rating are now eligible .

What Is TDIU (Total Disability Individual Unemployability)?

TDIU is a VA benefit that pays disabled veterans at the 100% disability compensation rate even if their combined disability rating is less than 100%. To qualify for TDIU, a veteran must :

• Be unable to work a steady job that supports them financially due to a service-connected disability

• Typically have at least one service-connected disability rated at 60% or more OR two or more disabilities with at least one rated at 40%+ and a combined rating of 70%+

Important: TDIU is a compensation determination, not a medical rating of 100% disability . Amendment G specifically added TDIU veterans to the property tax exemption eligibility.

Future Changes: Full Property Tax Exemption on the Horizon?

Proposed Initiative #67 (2025-2026)

Colorado is considering Initiative #67, which would fully exempt the primary residence of any veteran with a 100% permanent and total disability from property taxes for tax years beginning on or after January 1, 2026 .

What this would mean: Instead of the current 50% exemption on the first $200,000, veterans with 100% P&T ratings would pay zero property taxes on their primary residence.

Status: The initiative was received by the Legislative Council Staff on March 24, 2025, and is moving through the ballot process . If passed, it would require a 55% vote as a constitutional amendment .

Alternative Income Tax Credit (HB 25-1139)

Colorado House Bill 25-1139 proposes a refundable income tax credit for veterans with service-connected disabilities of at least 10% . The credit would be a percentage of property taxes paid, based on the veteran’s disability rating.

Status: Introduced in the 2025 legislative session. This would be an alternative or supplement to the current property tax exemption.

Required VA Forms for Disability Benefits

Note: These are federal VA forms, not the Colorado property tax exemption application.

Common Mistakes to Avoid

1. Applying to the Wrong Office
As of 2024, applications go to your county assessor — NOT the Division of Property Taxation or VA . Sending to the wrong office delays processing.

2. Missing the July 1 Deadline
Applications received after July 1 may not be processed for the current tax year.

3. Assuming You Don’t Qualify
If you have TDIU status, you now qualify under Amendment G. Many veterans may not realize they’re eligible .

4. Not Reapplying After Changes
If you transfer your property into a trust or LLC, you may need to reapply .

5. Failing to Provide VA Documentation
Your VA decision letter is required to verify your rating. Include it with your application.

State Differences: How Colorado Compares

Colorado’s benefit is more generous than many states:

Colorado’s maximum $100,000 exemption provides middle-of-the-pack benefits compared to states with 100% exemptions .

Common Questions

1. What exactly does “50% of the first $200,000” mean?

It means the first $200,000 of your home’s actual (market) value is reduced by 50% for property tax purposes. The maximum exemption is $100,000 of actual value. If your home is worth $200,000, only $100,000 is taxable. If your home is worth $300,000, $100,000 is exempt (50% of the first $200,000), and the remaining $200,000 is fully taxable.

2. Does Amendment G change anything for veterans already receiving the exemption?

No. If you already qualified under the 100% Permanent & Total rating, your benefits continue unchanged. Amendment G expands eligibility to TDIU veterans who previously couldn’t claim the exemption.

3. I’m a surviving spouse. Do I qualify?

Yes, if your veteran spouse previously received the exemption and you have not remarried, you may be eligible to continue the benefit . Gold Star spouses of service members killed in the line of duty also qualify.

4. What is the application deadline?

The deadline to apply for the current tax year is July 1 of that year . For the 2026 tax year, you must apply by July 1, 2026.

5. How much money will this save me?

Annual savings typically range from $500 to $700+, depending on your county’s mill levy. A veteran in El Paso County (Colorado Springs) saves roughly $474–$609 annually . In Denver, savings can reach $575–$710 per year.

6. Do I need to reapply every year?

No. Once approved, the exemption remains in effect as long as you continue to own and occupy the property as your primary residence .

7. What if my home is worth more than $200,000?

The exemption still applies to the first $200,000. For a $400,000 home, $100,000 is exempt (50% of the first $200,000), and the remaining $300,000 is fully taxable. You still benefit from the $100,000 exemption.

8. What if I own multiple properties?

You may designate only one property for the exemption — your primary residence . Vacation homes, rental properties, and second homes do not qualify.

9. Is there an age requirement?

No. Unlike the senior property tax exemption (which requires age 65+ and 10 years of ownership), the disabled veterans exemption has no age requirement .

10. Can active duty service members qualify?

Yes, if they meet the VA disability rating requirements and own and occupy a Colorado property as their primary residence. However, active duty members stationed in Colorado but domiciled elsewhere must establish Colorado residency to qualify .

11. What if my TDIU status is later revoked?

The exemption is based on your status as of January 1 of the application year. If your TDIU status changes in a later year, you should contact your county assessor to determine if you remain eligible.

12. How do I know if I have a 100% Permanent & Total rating?

Your VA decision letter will state your disability rating and whether it is permanent and total. Look for language like “This disability is considered permanent and total” or “P&T” on your letter. You can also check your VA benefits summary letter online through the VA portal.

Key Takeaways

• Colorado offers a 50% property tax exemption on the first $200,000 of a qualifying disabled veteran’s primary residence — up to $100,000 exempt from taxation

• Eligibility requires either a 100% Permanent & Total VA disability rating OR Individual Unemployability (TDIU) status

• Amendment G (passed November 2024) expanded eligibility to TDIU veterans starting with the 2025 tax year

• Submit applications to your county assessor by July 1 — NOT to the state Division of Property Taxation

• Annual savings typically range from $500 to $700+, depending on your county’s tax rate

• Once approved, the exemption continues automatically as long as you own and occupy the property

• Surviving spouses of qualifying veterans may continue the exemption if they haven’t remarried

• A full property tax exemption for 100% disabled veterans is being considered for future ballot initiatives

• The exemption is separate from VA disability compensation and other federal benefits

• Contact your county assessor for application forms and specific requirements

Official Resources

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