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State Benefit·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.

Verified May 12, 2026againsttax.colorado.gov

At a glance

Benefit type
Tax Benefits — Colorado
Who it's for
Veterans, Survivors
VA rating needed
No rating requirement
Estimated value
Up to $24,000 income subtraction
Where it applies
Colorado
Last verified
May 12, 2026

What is Military Retirement Pay State Income Tax Deduction?

Military Retirement Pay State Income Tax Deduction is a Colorado tax benefits benefit for veterans, survivors. Subtract up to $15,000-$24,000 of military retirement pay from Colorado taxable income depending on age. The listed value is Up to $24,000 income subtraction.

Who qualifies

VeteransSurvivors
  • Available to any veteran
  • Colorado residency

How to apply

Apply through the official Colorado agency.

Open application

Who is eligible

Eligibility

Any military retiree receiving retirement pay. Colorado resident. No disability rating required.

What Military Retirement Pay State Income Tax Deduction covers

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 for Military Retirement Pay State Income Tax Deduction

How to apply

Claimed on the Subtractions from Income Schedule (Form DR 0104AD) filed with Colorado return (Form DR 0104).

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 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.

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Frequently asked questions about Military Retirement Pay State Income Tax Deduction

Who qualifies for Military Retirement Pay State Income Tax Deduction?▾
Military Retirement Pay State Income Tax Deduction is for Veterans, Survivors; available to any veteran; colorado residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay State Income Tax Deduction worth?▾
The listed value is Up to $24,000 income subtraction. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay State Income Tax Deduction?▾
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 Military Retirement Pay State Income Tax Deduction?▾
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

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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