Colorado fully exempts military retirement income from state income tax. The Denver metro has strong VA healthcare access and multiple installations within commuting distance. Here's the complete picture for veterans evaluating Denver's 55+ communities.
Colorado is one of the strongest states in the country for military retirees from a tax perspective — and the Denver metro offers VA healthcare access, proximity to multiple installations, and a veteran-friendly community culture. If you're a veteran evaluating Denver's 55+ communities, here's what you need to know to make the full financial comparison.
Colorado fully exempts military retirement pay from state income tax. This applies to all uniformed services retirement pay — Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force, and National Guard retirement. It takes effect immediately upon establishing Colorado residency — there is no waiting period or minimum residency requirement.
For a veteran with $40,000/year in military retirement income moving to Colorado from a state that taxes military retirement (Virginia taxes it above certain thresholds, many states tax it partially), the immediate state income tax savings can be $1,500–$3,500/year depending on the previous state's tax treatment.
Social Security is also fully exempt from Colorado state income tax, regardless of income level. For veterans who receive both military retirement and Social Security, these two exemptions together can eliminate nearly all Colorado state income tax liability depending on other income sources.
The combined exemption math for a typical military retiree:
Military retirement: $40,000 — fully exempt from Colorado income tax
Social Security: $28,000 — fully exempt from Colorado income tax
Pension income deduction (65+): up to $24,000 additional deduction
For many veterans, the effective Colorado state income tax on combined military retirement + Social Security + moderate pension income is $0 or very close to it.
The Denver VA Medical Center (VAMC) is located in Aurora — one of the key medical facilities in the VA Rocky Mountain region. Aurora communities have the best access.
| Community | Drive to Denver VAMC (Aurora) | Notes |
|---|---|---|
| Heritage Eagle Bend | ~15 min | Best VA access of any major Denver 55+ community |
| Heather Gardens | ~15 min | Excellent — both communities in southeast Aurora |
| Solera | ~18 min | Very good Aurora access |
| Windsor Gardens | ~20 min | Good — Denver city address with Aurora commute |
| Heritage Todd Creek | ~30 min | Manageable for regular appointments |
| Anthem Ranch | ~40 min | Longer but workable for non-urgent care |
| Skyestone | ~35 min | Similar to Anthem Ranch |
| Gleneagles Village | ~35 min | South suburbs add distance |
| Hillside at Castle Rock | ~45 min | Longest VA commute of Denver communities |
| Retreat at Banning Lewis Ranch | ~75 min (use Pueblo CBOC or COS VAMC) | Colorado Springs VA is closer — 20 min |
Veterans with ongoing VA healthcare needs should weight Aurora communities strongly. Heritage Eagle Bend and Heather Gardens sit closest to the Denver VAMC and give veterans the best combination of VA access and strong UCHealth proximity for civilian specialist care.
The Denver metro has unusual military installation density for a civilian metro area:
Buckley SFB's Aurora location makes Heritage Eagle Bend, Heather Gardens, and Solera the strongest choices for veterans who want commissary and exchange access on a regular basis without a significant drive.
Veterans with VA home loan entitlement can use it in Colorado's 55+ communities. Age-restricted communities are eligible for VA financing — the 55+ requirement does not disqualify a property from VA loan use. The VA's no-down-payment benefit, competitive interest rates, and no private mortgage insurance requirement make VA financing highly attractive in a $500K–$700K market like Denver's premier communities.
Buyers considering Anthem Ranch, Heritage Eagle Bend, or Heritage Todd Creek with VA financing should work with a lender experienced in VA jumbo loans — the Denver market's higher price points often exceed conforming loan limits in some scenarios, and VA jumbo loan guidelines require specific lender expertise.
Heritage Eagle Bend (Aurora) tops the list for veterans who prioritize VA healthcare access, Buckley SFB proximity, and a gated community with strong resale. The 15-minute VA commute is the best of any major Denver 55+ community.
Heather Gardens (Aurora) delivers the same VA and Buckley access at lower purchase price and in a condo format that some veterans — particularly those who have lived in military housing and prefer maintenance-managed living — find highly appealing.
Solera (Aurora) offers the VA and Buckley advantages with single-family living at lower HOA than Heritage Eagle Bend — the right choice for veterans who want Aurora's location in a single-family home without golf course cost overhead.
The Retreat at Banning Lewis Ranch (Colorado Springs) is the right choice for veterans whose benefits, social connections, and appointments are centered on Fort Carson, Peterson SFB, or the Colorado Springs VA. The El Paso County property tax advantage ($500/year savings vs Denver) and Colorado Springs' strong military culture make it the premier choice for Army and Space Force retirees with Colorado Springs-oriented lives.
Colorado's combination of fully exempt military retirement income, fully exempt Social Security, and strong VA healthcare access makes it one of the better states in the country for military retirees. The Denver metro adds the Mountain West lifestyle, world-class skiing and outdoor recreation, and a veteran-friendly community culture that the Mountain West has historically maintained.
Aurora communities — Heritage Eagle Bend, Heather Gardens, Solera — maximize VA healthcare access and Buckley SFB proximity. Broomfield communities (Anthem Ranch, Skyestone) offer superior mountain views and outdoor lifestyle at the cost of a longer VA commute. The right choice depends on how frequently you use VA healthcare versus how central the outdoor recreation lifestyle is to your retirement plan.
Veteran or military spouse evaluating Denver 55+ communities?
We can run the complete financial picture including VA benefits, Colorado tax exemptions, and community-specific costs for your situation.
Talk to a Denver Specialist