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.
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Apply directly through the official Colorado agency.
About this benefit
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
Claimed on Colorado state income tax return.
Verified against official source
Last checked 2026-05-04 against tax.colorado.gov. Always confirm current rates and rules with the Colorado state agency before applying.
Other Colorado Tax Benefits
Military Retirement Pay State Income Tax Deduction
Subtract up to $15,000-$24,000 of military retirement pay from Colorado taxable income depending on age.
Up to $24,000 income subtraction
Disabled Veteran Property Tax Exemption
50% exemption on the first $200,000 of actual home value for 100% P&T disabled veterans or TDIU.
50% exemption on first $200,000 home value
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