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.
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Apply directly through the official Colorado agency.
About this benefit
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+). Veterans who retired before January 1, 1998 may exempt all military retirement pay. Same rules apply to Survivor Benefit Plan payments.
How to apply
Claimed on Colorado state income tax return (Form DR 0104).
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
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
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