How does Colorado's disabled veteran property tax exemption work in El Paso County?
Short answer: If you're an honorably discharged veteran whose service-connected disability is rated by the VA as 100% permanent, or who has been granted individual unemployability, Colorado exempts 50% of the first $200,000 of your home's actual value from property tax. Unlike the senior exemption, there's no age requirement and no 10-year ownership requirement. You must own and live in the home as your primary residence as of January 1, and apply to the El Paso County Assessor between January 1 and July 1.
Who qualifies
According to the Colorado Division of Property Taxation, a veteran qualifies if they:
- Served on active duty in the U.S. armed forces
- Were honorably discharged
- Have a service-connected disability that the U.S. Department of Veterans Affairs rates as a 100% permanent disability through disability retirement benefits, or have been granted individual unemployability status
- Own the home (or their spouse does) as of January 1 of the year they apply
- Live in the home as their primary residence as of January 1 of the year they apply
Two related versions exist for spouses:
- Surviving spouses of a veteran who received the exemption before they passed away
- Gold Star spouses: spouses of a service member who died in the line of duty, or of a veteran whose death resulted from a service-related injury or disease, who have been awarded Gold Star status by the VA
What it's worth
The exemption removes 50% of the first $200,000 of your home's actual value from property taxation, so up to $100,000 of value isn't taxed. What that saves you in dollars depends on your home's value and your area's mill levies. For how those pieces combine, see how property taxes work in El Paso County.
You can claim either the veteran exemption or the senior exemption on a property, not both.
How to apply in El Paso County
- Get a recent VA award letter showing your disability rating or individual unemployability status. You can download it from VA.gov.
- Complete the right application. There are separate forms for veterans, surviving spouses, and Gold Star spouses, available from the Division of Property Taxation and the county assessor.
- File with the El Paso County Assessor between January 1 and July 1. Applications filed by July 1 keep full appeal rights if they're denied. Late applications are accepted through August 1, but you give up the right to appeal a denial.
- Report changes. If your disability or unemployability status changes after you apply, you must send new documentation to the Assessor within 60 days.
If a deadline falls on a weekend or holiday, filing by the next business day counts as on time.
What's specific to Colorado Springs: timing a move
Colorado Springs has a large veteran community, and many veterans buy here when they retire or separate from the service, or move within the area later. The January 1 rule is the part that matters most when you move.
Eligibility is set as of January 1 each year. If you close on a home after January 1, you generally can't claim the exemption on that home until the following tax year. Then you apply between January 1 and July 1 of that year. And because the exemption is tied to your primary residence, a move means applying again for the new home.
Two practical points follow:
- Budget the first year without it. If you're buying mid-year, plan for your first tax bill on the new home to reflect no exemption.
- Don't rely on the listing's tax figure. The taxes shown on a listing reflect the previous owner, including any exemption they had. See what happens to your property taxes when you downsize for more on reading a listing's tax figure.
Other benefits your rating may affect
A VA disability rating can matter beyond property tax. For example, veterans who receive VA disability compensation are exempt from the VA funding fee on a VA home loan. See how FHA, conventional, and VA financing compare and how to choose a lender for a VA loan.
What could change the answer
- Colorado law. The legislature and voters have changed these exemptions before, including expanding who qualifies. Check the current rules each year you apply.
- Your rating or status. A change in your VA rating or unemployability status can affect eligibility, and you must report it within 60 days.
- Ownership. How the home is titled, for example in a trust, can affect how you complete the application. Ask the Assessor's office if your situation is unusual.
- Your home's value. If you believe the county has valued your home too high, you can protest. See how to appeal your property assessment in El Paso County.
When to talk with a professional
The El Paso County Assessor's office handles the application and can answer questions about your specific property. El Paso County Veterans Services can help with VA paperwork, and a CPA can help you fit property taxes into your overall budget. If you're buying or selling in Colorado Springs and want the exemption and its timing built into your plan, let's talk about your situation.
About the author
Weldon Hobbs is a Colorado Springs REALTOR® and co-founder of Team Hobbs Realty. He is a member of The Platinum Group, REALTORS®, Colorado Springs' #1 independent brokerage, which pairs deep local expertise with premium marketing exposure. A U.S. Air Force Academy graduate and retired Air Force veteran, he and his family made more than 10 military moves. Since 2006, he and his wife, Kristen, have bought and sold their own homes, managed a portfolio of rental properties, and guided others through their own real estate decisions. He has also helped both family members and clients downsize, where the decisions are often complex and the process can feel overwhelming. Drawing on his background as a PMP® (Project Management Professional), he helps people break those decisions into clear, manageable steps.
Since beginning his real estate career, he has ranked in the top 7% by sales volume among the more than 4,000 members of the Pikes Peak Association of REALTORS®. He works with military families, seniors and downsizing clients, luxury and premium home sellers, and people relocating to Colorado Springs. He developed the Life → Wealth → Real Estate™ method, hosts the national YouTube channel Life & Real Estate Without Regret, and holds an MBA along with the SRES® (Seniors Real Estate Specialist®), MRP (Military Relocation Professional), and Certified Financial Coach credentials. More about Weldon
Sources
- Colorado Division of Property Taxation, Veteran with a Disability and Gold Star Exemptions: https://dpt.colorado.gov/veteran-with-a-disability-and-gold-star-exemptions
- Colorado Division of Property Taxation, Senior Citizen and Veterans with a Disability Property Tax Exemption and Senior Primary Residence Classification: https://dpt.colorado.gov/property-tax-exemption-for-senior-citizens-and-veterans-with-a-disability
- U.S. Department of Veterans Affairs, Download VA benefit letters: https://www.va.gov/records/download-va-letters/
- U.S. Department of Veterans Affairs, VA funding fee and closing costs: https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/
- El Paso County Assessor: https://assessor.elpasoco.com
- El Paso County Veterans Services: https://veterans.elpasoco.com/