Active-Duty Military Pay State Income Tax Exemption
Colorado-resident active-duty members stationed outside the U.S. for 305+ days, or in a combat zone, may exclude military pay.
State BenefitColoradoTax Benefits
Verified September 30, 2026 against tax.colorado.gov
At a glance
- Benefit type
- Tax Benefits — Colorado
- Who it's for
- Active Duty
- VA rating needed
- No rating requirement
- Where it applies
- Colorado
- Last verified
- September 30, 2026
What is Active-Duty Military Pay State Income Tax Exemption?
Active-Duty Military Pay State Income Tax Exemption is a Colorado tax benefits benefit for active duty. Colorado-resident active-duty members stationed outside the U.S. for 305+ days, or in a combat zone, may exclude military pay.
Who qualifies
- Active Duty
- Through veteran sponsor (any rating)
- Colorado residency
Who is eligible
Eligibility
A Colorado-resident active-duty member stationed OUTSIDE the United States (or its territories) for 305+ days during the tax year may file as a nonresident, exempting that military pay. Combat zone pay is also exempt. Note: Being stationed in another U.S. state alone does NOT exempt your military pay from Colorado tax.
How to apply for Active-Duty Military Pay State Income Tax Exemption
How to apply
Claimed on Colorado state income tax return.
Verified information & sources
- Last verified
- September 30, 2026
- Official source
- tax.colorado.gov
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
How VetUnlock verifies benefitsFrequently asked questions about Active-Duty Military Pay State Income Tax Exemption
Who qualifies for Active-Duty Military Pay State Income Tax Exemption?
Active-Duty Military Pay State Income Tax Exemption is for Active Duty; Through veteran sponsor (any rating); colorado residency. See the eligibility details on this page and confirm with the official source before applying.
How do I apply for Active-Duty Military Pay State Income Tax Exemption?
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Active-Duty Military Pay State Income Tax Exemption?
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.
Other Colorado Tax Benefits
- Military Retirement Pay State Income Tax DeductionUp to $24,000 income subtractionSubtract up to $15,000-$24,000 of military retirement pay from Colorado taxable income depending on age.
- Disabled Veteran Property Tax Exemption50% exemption on first $200,000 home value50% exemption on the first $200,000 of actual home value for 100% P&T disabled veterans or TDIU.