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.
Who qualifies
- Available to any veteran
- Colorado residency
How to apply
Up to $24,000 income subtraction
Apply through the official Colorado agency.
Open applicationDetails
Eligibility
Any military retiree receiving retirement pay. Colorado resident. No disability rating required.
Subtract from Colorado taxable income
up to $15,000 (under age 55), $20,000 (ages 55-64), or $24,000 (age 65+). Same rules apply to Survivor Benefit Plan payments.
How to apply
Claimed on the Subtractions from Income Schedule (Form DR 0104AD) filed with Colorado return (Form DR 0104).
Always confirm current rates and rules with the Colorado state agency before applying.
Other Colorado Tax Benefits
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.
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
See every benefit you qualify for in Colorado
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