What Colorado benefits can you get with a VA disability rating?

Key Takeaways

Colorado stacks its own benefits on top of a federal VA disability rating, including Disabled Veteran license plates at 50%, a free lifetime hunting and fishing license at 60%, and a property tax exemption for Veterans rated 100% permanent and total. Since the 2025 tax year, Amendment G has also opened that property tax exemption to Veterans with TDIU status, so Veterans who were turned away before then may now qualify. Sean Kendall’s legal team helps Colorado Veterans pursue the TDIU awards and rating increases that decide which of these state benefits are within reach. 

A VA disability rating does more than set your monthly compensation check. In Colorado, the same rating can lower your property taxes, put fee-exempt plates on your car, and get you into any state park without paying at the gate. The catch is that every Colorado benefit has its own rating threshold, its own agency, and its own paperwork, and none of them are applied automatically just because VA approved your claim. If you aren't sure where your rating leaves you, the Law Office of Sean Kendall can talk through your situation and offer guidance. Here's what you should know.

Which Colorado Benefits Does Your VA Disability Rating Unlock? 

Think of your VA rating as a set of keys. Each percentage threshold opens a different door at the state level, and a higher rating usually means more doors. Here is how the main Colorado benefits for disabled Veterans line up: 

• Any service-connected disability. Veterans' preference on many state and local government job applications when you attach a VA letter showing the disability. 

• A permanent, service-connected rating of 50% or higher. Disabled Veteran license plates, with one set exempt from annual registration fees and specific ownership tax. 

• A service-connected rating of 60% or higher. A free lifetime small game hunting and fishing combination license from Colorado Parks and Wildlife. 

• A 100% permanent and total rating, or TDIU status. The disabled Veteran property tax exemption on your primary residence. 

These thresholds turn on the number printed on your VA letter, not on the severity you feel day to day. If you have several service-connected conditions and aren't sure how VA arrived at your number, our combined VA disability rating calculator shows how individual ratings are combined under VA's formula. 

How Does Colorado's Disabled Veteran Property Tax Exemption Work? 

For Veterans who own a home, the property tax exemption is usually the most valuable state benefit tied to a VA rating, and it has the most rules attached to it. It exempts 50% of the first $200,000 of your home's actual value from property tax. The state reimburses local governments for the lost revenue, so your county, school district, and fire district still get paid. 

Who Qualifies for the Exemption? 

The exemption is written into the Colorado Constitution, and the eligibility requirements are specific. To qualify, a Veteran generally must: 

• Have received an honorable discharge. 

• Hold a VA service-connected disability rating of 100% permanent and total, have a 100% permanent disability through military disability retirement, or have individual unemployability status from VA. 

• Own the home and have occupied it as a primary residence since January 1 of the year of the application. 

• Claim the exemption on only one property in Colorado. A household can't stack it with the senior property tax exemption, though a home held in a trust for estate planning purposes can still qualify. 

How Did Amendment G Change the Rules for TDIU Veterans? 

Until recently, Veterans paid at the 100% rate through total disability based on individual unemployability were shut out of the property tax exemption. The VA paid them the same monthly amount as a Veteran rated 100% under the schedule, but Colorado's exemption recognized only the 100% permanent and total rating.

Colorado voters closed that gap in November 2024 by approving Amendment G. Starting with the 2025 property tax year, a Veteran with individual unemployability status qualifies for the exemption. Notably, the amendment doesn't require TDIU to be permanent. A Veteran whose TDIU award is still subject to future review can apply.

This change matters most to the Veterans who were told before 2025 that they didn't qualify. Many of them reasonably assumed the answer would never change, and that the exemption would only appear on a tax bill if the homeowner filed for it. If you were awarded TDIU at any point and own your Colorado home, the exemption is worth a fresh look.

TDIU itself is a federal benefit with its own requirements. VA generally looks for one service-connected condition rated at 60% or more, or a combined rating of 70% or more with at least one condition at 40%, plus proof that your service-connected conditions keep you from holding substantially gainful employment. Veterans who fall short of those percentages can still pursue TDIU on an extraschedular basis in some cases. 

How Do You Apply Through Your County Assessor? 

Since January 1, 2024, applications for veteran-related property tax exemptions go directly to the county assessor where your home is located, not to the Colorado Division of Veterans Affairs. The filing window runs from January 1 through July 1 each year. Your application packet needs the official state application form and your VA Benefit Summary Letter, which you can download from VA.gov. Many assessors prefer a letter dated within the past 12 months.

Once your exemption is approved, you don't need to reapply each year at the same address. You will need to file again if you move or if your VA status changes. The Colorado Division of Veterans Affairs property tax exemption page lists contact information for every county assessor in the state. 

What Happens If You Miss the July 1 Deadline? 

Colorado doesn't allow the exemption for any tax year before the year you first file. That means a missed deadline costs you a full year's worth of savings you can't recover later. Applications that arrive between July 2 and December 31 aren't held for the following year, either, so you will need to submit a new packet once the window reopens on January 1.

TDIU Veterans should also keep in mind that unemployability status can be reviewed. The state's application asks TDIU Veterans to report changes in that status, and losing TDIU can end eligibility for the exemption. Understanding how to protect TDIU benefits from reduction protects your federal compensation and your Colorado tax break at the same time. 

What Do Disabled Veteran License Plates Get You in Colorado? 

Colorado issues Disabled Veteran (D.V.) license plates to Veterans with a permanent, service-connected disability rated at 50% or higher, and to Veterans with the loss or loss of use of a hand, foot, or eye due to service. You will need an eligibility letter from VA confirming the rating, and you will order the plates through your county motor vehicle office.

The first set of D.V. plates is exempt from annual registration fees and specific ownership tax on that vehicle, which adds up every renewal year. Additional sets carry the usual fees. D.V. plates don't include accessible parking privileges on their own. Veterans who need those privileges can apply for a separate disabled Veteran plate that also requires a medical provider's verification of a physical impairment. The Colorado DMV military license plate page outlines the documents required for each plate type. 

What State Park, Hunting, and Fishing Benefits Are Available? 

Colorado Parks and Wildlife offers some of the most practical everyday benefits for disabled Veterans, and several of them connect to a VA rating: 

• Free state park entry with plates. Colorado residents with current D.V. plates can enter any state park year-round without a parks pass, as long as the Veteran is in the vehicle. 

• The Independence Pass. Colorado resident Veterans with qualifying service-connected disabilities can apply for this free pass, which also covers year-round state park entry and helps when you're driving a vehicle without D.V. plates. 

• The VA combo license. Veterans who have lived in Colorado for at least six months and receive compensation for a service-connected disability of 60% or higher can apply for a free lifetime small game hunting and fishing combination license. 

Every Veteran, regardless of rating, also gets free admission to state parks throughout August and on Veterans Day. Keep in mind that these benefits cover entry, not camping reservations or other park fees. 

Does a VA Rating Help With Colorado Government Jobs? 

Article XII, Section 15 of the Colorado Constitution gives veterans' preference to qualifying applicants for state jobs, and local civil service systems that mirror the state's system must award the same preference. Veterans with a service-connected disability should attach their DD-214 and a VA letter showing the disability to the application. The preference applies to initial hiring, not promotions.

Veterans who receive TDIU need to be careful here. A new job can affect unemployability benefits, so make sure you understand how part-time work affects TDIU benefits before accepting an offer. 

What Colorado Benefits Are Available to Surviving Spouses? 

Colorado extends the property tax exemption to Gold Star spouses. That includes the surviving spouse of a service member who died in the line of duty and whose death resulted in a Department of Defense death gratuity, and the surviving spouse of a service member whose death VA connected to service and who receives Dependency and Indemnity Compensation. A surviving spouse of a Veteran who already held the exemption can generally keep it at the same home if the spouse hasn't remarried.

Families working through a loss often have federal claims to resolve at the same time, and our overview of VA benefits for survivors and dependents covers DIC and related programs. 

Why Your VA Rating Is the Key to Every Colorado Benefit 

Every benefit on this page depends on one thing the State of Colorado doesn't decide: your VA rating. A Veteran rated 90% without TDIU can get D.V. plates and the lifetime combo license, but not the property tax exemption. The same Veteran with a TDIU award qualifies for all three. That is why the federal side of the claim deserves close attention. Veterans whose service-connected conditions keep them out of steady work may be closer to TDIU than their current rating suggests, and building the right record starts with the evidence that supports a TDIU claim, such as employment history, medical opinions, and vocational assessments. A successful TDIU or rating increase can also bring retroactive compensation, depending on how VA's effective dates and back pay apply to your claim.

Colorado's benefits work differently. They start in the year you apply and don't reach backward, so once VA updates your rating, getting the new letter to your county assessor, motor vehicle office, and Colorado Parks and Wildlife is the step that turns a federal decision into state savings.