What happens to my property taxes when I downsize in Colorado Springs?

How the senior exemption works

Colorado's senior property tax exemption, often called the senior homestead exemption, exempts 50% of the first $200,000 of your home's actual value from property tax. The state reimburses the county for the difference. To qualify in El Paso County, as of January 1 of the year you apply:

• You're at least 65.
• You've owned the home for at least 10 consecutive years.
• You've lived in it as your primary residence for those same 10 years.

A surviving spouse can keep the exemption under certain conditions. Applications go to the El Paso County Assessor, with a deadline of July 15.

What happens when you move

The 10 years are tied to the home, not to you. When you sell and buy another home, the exemption generally stops on the old home and doesn't transfer to the new one. On the new home, the 10-year clock starts over.

That makes the exemption worth including when you compare downsizing with staying. Your current tax bill shows the exemption, and the Assessor's office can help you understand what it's worth on your home.

The temporary relief for movers, and why it's ending

In 2024, Colorado created a temporary benefit for seniors who had received the exemption in 2020 or later and then moved: the "qualified-senior primary residence classification," created by Senate Bill 24-111. It gave the new home a tax reduction similar to the exemption, but only for tax years 2025 and 2026.

In 2026, the legislature passed Senate Bill 26-116, signed June 2, 2026, which ends the classification for tax years beginning January 1, 2027. The application deadline for tax year 2026 (March 15, with late filing accepted until July 15) has also passed. So:

• If you already have the classification for 2026, it shows up on the tax bill you receive in 2027, and that's the last year.
• If you're downsizing now, the classification isn't available on your next home.

Disabled veterans and Gold Star spouses

Colorado's exemption for veterans with a disability uses the same formula: 50% of the first $200,000 of actual value is exempt. But it doesn't have the senior exemption's 10-year requirement or an age requirement. You need a qualifying VA disability rating, and you must own and occupy the home as your primary residence as of January 1 of the year you apply. Qualifying Gold Star spouses and certain surviving spouses are also eligible. That means a qualifying veteran can apply on the next home after a move. The deadline is July 1, and you can't claim both the senior and veteran exemptions on the same property. For the full eligibility and application walkthrough, see how Colorado's disabled veteran property tax exemption works in El Paso County.

What your next home's taxes will look like

Property tax in El Paso County starts with the home's actual value, applies the state's residential assessment rate, and multiplies by the mill levies of every taxing district the home sits in. Two similar homes can have very different bills. See how property taxes work in El Paso County and why two similarly priced homes can have very different taxes.

Three things catch downsizers off guard:

• The tax figure on a listing reflects the previous owner. If the seller had the senior exemption, the bill you see may be lower than what you'll pay. The tax figure attached to a property is historical data about the previous owner, not a forecast for you.
• Metro districts. Many newer patio homes and 55+ communities around Colorado Springs are in metro districts, which add to the property tax bill. What I look at on any property is the current tax bill, and then, if it's in a metro district, how much that adds. See what a metro district is.
• New construction. On a newly built home, the first bill may reflect only the land, with the house added later and a much larger bill following. Plan for the full amount so it isn't a surprise.

A simple way to plan

• If you have the senior exemption, find its value on your current tax bill and include losing it in your downsizing numbers.
• If you're a veteran with a qualifying disability rating, plan to apply on the next home by July 1.
• If you're comparing homes, ask for an estimate of the tax on each at its likely value, including any metro district, rather than relying on the listing's figure.
• If a new build is on your list, ask how the home is currently assessed and what the bill will look like once the house is added.

What could change the answer

• Colorado property tax law. The legislature has changed assessment rates and exemptions repeatedly in recent years, and could change them again.
• State funding. The senior and veteran exemptions depend on the state reimbursing counties. In some past budget crises, the reimbursement was suspended.
• Your timing. Eligibility is set as of January 1 each year, so when you move and when you apply matter.
• 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

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

• El Paso County Assessor, Senior Property Tax Exemption: https://assessor.elpasoco.com/senior-property-tax-exemption/
• 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
• Colorado General Assembly, SB24-111, Senior Primary Residence Property Tax Reduction: https://leg.colorado.gov/bills/sb24-111
• Colorado General Assembly, SB26-116, Property Tax Modifications: https://leg.colorado.gov/bills/SB26-116
• Colorado Department of Local Affairs, 2026 Qualified Senior Primary Residence Classification announcement: https://cdola.colorado.gov/press-release/dolas-division-of-property-taxation-encourages-eligible-colorado-seniors-to-take-0