If you’re 65 or older and have lived in your Colorado home for a long time, you may be paying more property tax than you need to. Colorado’s senior property tax exemption can cut the taxable value of your home, but many eligible homeowners never apply. And if you’re thinking about downsizing, it’s important to know what happens to the exemption when you sell.
Note: I’m a real estate broker, not a CPA, financial advisor or lawyer. Exemption rules are set by the state and handled by your county assessor, so confirm the details with your county before you apply or make a decision.
Who qualifies
- Age: 65 or older as of January 1 of the year you apply.
- Ownership: you’ve owned the home for at least 10 consecutive years.
- Occupancy: it’s your primary residence.
- One home only: you (or you and your spouse) can claim it on only one property.
Surviving spouses of seniors who qualified can often keep the exemption, and there’s a separate exemption for qualifying disabled veterans. Your county assessor has the forms for both.
How much it saves
The exemption reduces the value your property tax is based on by 50% of the first $200,000 of your home’s value. The dollar savings depend on your local tax rate, so ask your assessor or check your tax bill. The state reimburses local governments for the difference, so your school district and city don’t lose out.
How and when to apply
- Get the application from your county assessor’s website (Denver, Arapahoe, Douglas, Jefferson and other counties all post it online).
- Apply between January 1 and July 15 for that tax year.
- Once approved, it generally stays in place until the home changes ownership. You don’t reapply every year.
What happens when you sell or downsize
Traditionally, the exemption stayed with the home, so selling meant losing it and starting the 10-year clock over. For tax years 2025 and 2026, Colorado allows a portable senior exemption: if you received the exemption on a previous home in 2020 or later, you may be able to apply it to your new primary residence. Ask your county assessor whether you qualify and when to apply, because the same July 15 deadline applies.
If you’re weighing a move, see our guide to downsizing in Denver and how capital gains tax works when you sell.
For families and heirs
When a parent moves into assisted living, the home may no longer be their primary residence, which can affect the exemption. When a home passes to heirs, the change in ownership usually ends it. If you’re handling a parent’s home, read selling a parent’s house with power of attorney or your options for an inherited house.
Frequently asked questions
Do I have to reapply every year?
No. Once approved, the exemption generally continues until the home changes ownership or stops being your primary residence.
I missed the July 15 deadline. What now?
Apply between January 1 and July 15 of next year. Some counties have limited exceptions, so it’s worth calling your assessor.
Does a home held in a trust qualify?
Often yes, if the senior who lives there meets the requirements. Counties usually use a longer application for trusts. See also selling a house in a trust in Colorado.
Will I lose the exemption if I move?
Usually it ends when you sell. For 2025 and 2026, the portable exemption may let you apply it to your new home if you received it on a previous home in 2020 or later.
Thinking about your next move?
I help long-time owners plan a move without rushing. Call us at (720) 403-2940, reach out here, or search homes for sale to see what’s available.