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Best States for Veterans: Colorado
Part of the G.I. Jobs 50 States of Opportunity for Veterans Series
Using the Military Friendly® States Tool, this series explores what makes each state unique and why it may be the perfect place to begin your next mission.
Best States for Veterans: Colorado
Colorado has a pretty compelling pitch for Veterans: mountains, a major military community, a strong defense and aerospace economy, growing technology industries, and an outdoor lifestyle that makes it difficult to spend your entire weekend on the couch.
The state is home to roughly 342,000 Veterans, according to the latest Census Bureau QuickFacts data, representing about 7.7% of Colorado’s population.
Colorado also has an unusually strong connection to the modern military. Fort Carson, Buckley Space Force Base, Peterson Space Force Base, Schriever Space Force Base and the U.S. Air Force Academy are all part of the state’s military landscape. Fort Carson alone has more than 23,000 military personnel assigned to the installation, while Buckley supports a broad community of active-duty, Reserve, Guard, civilian and contractor personnel.
For Veterans leaving the military, that translates into a state where military experience can remain highly relevant in civilian careers—particularly in aerospace, defense, cybersecurity, space, engineering, healthcare, logistics and government.
But Colorado isn’t perfect. Housing costs are substantially higher than they were a decade ago, and the state’s popularity has made affordability a serious consideration. Military retirement income is also not completely tax-free, although Colorado provides specific deductions that can reduce the state tax burden.
So, is Colorado one of the best states for Veterans?
For the right Veteran, absolutely.
Table of Contents
- Veteran Snapshot
- Why Veterans Choose Colorado
- Colorado by the Numbers
- Employment Outlook for Veterans
- Education Opportunities
- Veteran Benefits in Colorado
- Healthcare & VA Resources
- Best Cities for Veterans
- Cost of Living
- Outdoor Recreation & Veteran Lifestyle
- Pros & Cons
- Is Colorado Right for You?
- Frequently Asked Questions
Veteran Snapshot
| Category | Colorado |
|---|---|
| Overall Ranking | See full 50-state rankings |
| Best For | Defense, Space Force, technology, outdoor lifestyle |
| Veteran Population | ~342,000 |
| State Income Tax | Yes |
| Military Retirement Tax | Partially deductible |
| Cost of Living | Above National Average |
| Major Military Installations | 5+ |
| VA Medical Centers | 2 major systems |
| Military Community | Strong |
Colorado’s military footprint includes Fort Carson, Buckley Space Force Base, Peterson Space Force Base, Schriever Space Force Base and the U.S. Air Force Academy.
Why Veterans Choose Colorado
Colorado attracts Veterans for a combination of reasons that don’t often appear together in the same state.
There’s the obvious one: the outdoors.
But the state’s appeal goes far beyond hiking trails and mountain views.
Colorado has developed into a major center for aerospace, defense, cybersecurity and space-related industries. Peterson Space Force Base and Buckley Space Force Base support missions involving space operations, missile warning and tracking, while the Colorado Springs region has a particularly large concentration of military installations and defense-related employment.
That makes Colorado particularly attractive for Veterans whose military backgrounds include:
- Intelligence
- Cybersecurity
- Aviation
- Communications
- Engineering
- Logistics
- Space operations
- Information technology
- Project management
- Leadership
The state also has a significant Veteran community. Colorado’s 342,276 Veterans represent about 7.7% of the state’s population, according to 2020–2024 Census data.
Another major advantage is Colorado’s workforce infrastructure. Veterans receive Priority of Service through Colorado Workforce Centers, and Veterans Employment Specialists provide one-on-one help with resumes, interviews, career planning, training and translating military experience into civilian skills.
For Veterans who want to stay connected to a military community without remaining on active duty, Colorado offers something unusual: a civilian career that can still feel closely connected to the mission.
Colorado by the Numbers
| Category | Colorado |
|---|---|
| State Population | ~6.0 million |
| Veteran Population | 342,276 |
| Veterans as Share of Population | ~7.7% |
| Median Home Value | $539,400 |
| Median Gross Rent | $1,761/month |
| State Income Tax | Yes |
| Military Retirement Tax | Partial deduction |
| Major Military Installations | 5+ |
| Major VA Health Systems | 2 |
| 2025 State Unemployment Rate | 3.8% |
The Census Bureau reports a 2020–2024 median value of owner-occupied homes of $539,400 and median gross rent of $1,761. Colorado’s unemployment rate was 3.8% in December 2025, compared with 4.4% nationally at that time, according to the Colorado Department of Labor and Employment.
Employment Outlook for Veterans
Colorado’s employment market is one of the state’s biggest advantages for Veterans.
The state’s military and aerospace presence creates a natural pipeline into civilian careers, while Denver and other Front Range communities provide opportunities in technology, healthcare, finance, construction and professional services.
Top Industries for Veterans
- Aerospace & Defense
- Space Technology
- Cybersecurity
- Information Technology
- Healthcare
- Engineering
- Manufacturing
- Logistics
- Government
- Construction
- Energy
- Telecommunications
The Colorado Springs region is particularly attractive for Veterans with military and defense experience. Fort Carson is one of Colorado’s largest employers, while Peterson and Schriever Space Force Bases and the U.S. Air Force Academy contribute to a dense military and federal employment ecosystem.
The state’s space economy is another major differentiator. Veterans with experience in intelligence, satellite systems, communications, cyber operations, engineering and mission planning may find particularly strong opportunities in Colorado’s aerospace and space sectors.
Colorado also makes a point of connecting Veterans with employers. The Colorado Department of Labor and Employment provides Veterans with career coaching, resume assistance, interview preparation, job-search support and training opportunities through Workforce Centers.
Military Friendly® Employers
Veterans looking for companies that actively support military hiring should explore Military Friendly® Employers when researching Colorado career opportunities.
And before applying, make sure you’re translating military experience into language civilian employers understand on your resume.
Veterans who want to quickly add an in-demand credential can also explore best certifications for Veterans to earn in under six months.
Education Opportunities
Colorado offers Veterans access to a wide range of universities, community colleges, technical schools and career-training programs.
Some of the state’s best-known higher education institutions include:
- University of Colorado Boulder
- University of Colorado Colorado Springs
- Colorado State University
- Metropolitan State University of Denver
- University of Denver
- Colorado School of Mines
- Colorado Mesa University
- Community College of Colorado
Veterans also have an important advantage when it comes to transferring military experience into education.
Colorado has statewide policies supporting prior learning assessment, including college credit for military training and education. The Colorado Department of Higher Education specifically recognizes military occupations and training among forms of prior learning that can potentially translate into academic credit.
That’s worth investigating before enrolling. Veterans shouldn’t automatically assume they need to start college with a blank transcript.
Colorado also provides in-state tuition protections for qualifying Veterans and military-connected students. The state requires institutions to provide in-state tuition classification to qualifying honorably discharged Veterans who meet applicable requirements, while federal “covered individual” rules can provide in-state tuition for eligible Veterans and dependents using qualifying GI Bill benefits.
Veterans researching schools should also compare institutions through the Military Friendly® Schools directory.
And if you’re comparing expensive private schools or programs, understand how the Yellow Ribbon Program and Post-9/11 GI Bill work together before choosing a school.
Veteran Benefits in Colorado
Colorado offers Veterans a combination of tax benefits, education protections, employment assistance and property tax programs.
State Income Taxes
Colorado has a state individual income tax.
That means Veterans should not assume that moving to Colorado makes military retirement income completely tax-free.
Military Retirement
Colorado provides a military retirement subtraction, but the amount depends on age and the type of retirement-income deduction available.
For retired servicemembers under age 55, Colorado allows a military retirement subtraction of up to $15,000 for tax years 2022 through 2028. Veterans age 55 and older may qualify for the state’s broader pension and annuity subtraction, subject to applicable limits.
That’s an important distinction when comparing Colorado with states that completely exempt military retirement pay.
Property Tax Benefits
Colorado provides a property tax exemption for qualifying disabled Veterans.
The state has also expanded eligibility to include Veterans with Individual Unemployability (TDIU) following voter approval of Amendment G in 2024.
The exemption is not the same as eliminating all property taxes on a home, so Veterans should verify current eligibility and exemption calculations with their county assessor before purchasing a home based on the benefit.
Education Benefits
Colorado provides in-state tuition protections for qualifying Veterans and military-connected students.
Military members and their dependents may also qualify for in-state tuition under specific circumstances, including permanent duty assignments in Colorado.
Employment Assistance
Veterans receive Priority of Service through Colorado Workforce Centers. Veterans Employment Specialists can provide individualized assistance with:
- Resume writing
- Interview preparation
- Career planning
- Job searches
- Training opportunities
- Translating military skills
- Industry research
The state’s workforce system specifically says its services are available at no cost to eligible Veterans and spouses.
Healthcare & VA Resources
Colorado has a substantial VA healthcare network serving Veterans across the Front Range and western part of the state.
The state’s major VA systems include:
- VA Eastern Colorado Health Care System
- VA Western Colorado Health Care System
The Rocky Mountain Regional VA Medical Center in Aurora is a major VA facility, while the Grand Junction VA Medical Center serves western Colorado. The state also has numerous outpatient clinics and Vet Centers.
Services include:
- Primary care
- Specialty care
- Mental healthcare
- PTSD treatment
- Women’s health
- Rehabilitation
- Telehealth
- Caregiver support
- Substance-use treatment
The geography of Colorado makes access particularly important for Veterans living outside Denver and Colorado Springs. VA community clinics and telehealth services help extend care to Veterans in more rural areas.
Best Cities for Veterans
Colorado’s cities offer very different experiences, so the “best” choice depends heavily on what you’re looking for after military service.
Colorado Springs
Best for: Military, defense and Space Force careers
Colorado Springs is arguably the most obvious destination for Veterans in Colorado.
The area is home to Fort Carson, Peterson Space Force Base, Schriever Space Force Base, the U.S. Air Force Academy and NORAD-related operations. El Paso County also has one of the largest Veteran and retiree populations in the state.
Pros
- Huge military community
- Defense and federal employment
- Strong Veteran support network
- Outdoor recreation
- Multiple military installations
Cons
- Housing costs have increased
- Traffic and growth
Denver
Best for: Technology, professional careers and government
Denver offers the state’s largest metropolitan job market and access to careers in technology, healthcare, finance, professional services and government.
Pros
- Diverse economy
- Large employer base
- Strong healthcare system
- Major airport
- Urban amenities
Cons
- High housing costs
- Traffic
- Less direct military presence than Colorado Springs
Aurora
Best for: Veterans who want access to both Denver and the military community
Aurora sits next to Denver and is home to Buckley Space Force Base and the Rocky Mountain Regional VA Medical Center.
Buckley itself supports a broad military, civilian, contractor and Veteran community and contributes billions of dollars annually to the local economy.
Pros
- Buckley Space Force Base
- VA healthcare
- Denver-area employment
- Diverse housing options
Cons
- Rapid growth
- Traffic
Fort Collins
Best for: Education and quality of life
Fort Collins combines a strong university presence with access to outdoor recreation and the broader Northern Colorado economy.
Pros
- Colorado State University
- Strong community
- Outdoor recreation
- Growing economy
Cons
- Housing costs
- Smaller military footprint
Grand Junction
Best for: Western Colorado living
Grand Junction provides a very different experience from Denver or Colorado Springs. It’s smaller, less urban and surrounded by dramatic western Colorado scenery.
The city is also home to the Grand Junction VA Medical Center, making it an important healthcare hub for Veterans in western Colorado.
Pros
- Outdoor lifestyle
- Smaller community
- VA medical center
- Access to western Colorado
Cons
- Smaller job market
- Fewer large employers
Cost of Living
| Expense | Colorado | U.S. Average |
|---|---|---|
| Housing | Higher | Average |
| Rent | Higher | Average |
| Utilities | Moderate | Average |
| Groceries | Moderate | Average |
| Transportation | Moderate | Average |
| Healthcare | Moderate | Average |
Colorado’s biggest financial challenge is housing.
The Census Bureau reports a $539,400 median value for owner-occupied homes and median gross rent of $1,761 for 2020–2024.
That doesn’t mean every part of Colorado is unaffordable. Housing varies considerably between Denver, Colorado Springs, Aurora, Fort Collins, Grand Junction and smaller communities.
Veterans considering Colorado should compare salary, housing and commute together, rather than simply looking at the state’s average cost of living.
A six-figure salary in Denver, for example, doesn’t necessarily provide the same purchasing power as a substantially lower salary in a more affordable state.
Outdoor Recreation & Veteran Lifestyle
This is where Colorado makes its strongest argument.
For Veterans who spent years operating in demanding environments and aren’t quite ready to trade adventure for a desk, Colorado offers an enormous backyard.
Popular activities include:
- Hiking
- Mountain biking
- Skiing
- Snowboarding
- Camping
- Fishing
- Hunting
- Rock climbing
- Whitewater rafting
- Off-roading
- Fly fishing
- Scenic drives
The state’s mountains and public lands also make it easy to build an active lifestyle around work rather than waiting for the occasional vacation.
And for Veterans who enjoy the outdoors as a way to stay connected with other Veterans, Colorado’s large military communities create plenty of opportunities for organized recreation, adaptive sports and Veteran-focused outdoor programs.
The catch? Colorado’s elevation and weather should not be underestimated. Winters can be serious, mountain driving can be challenging and outdoor recreation often comes with a price tag of its own.
Pros & Cons
Pros
✔ Strong military and Veteran community
✔ Major defense and Space Force employment opportunities
✔ Excellent outdoor recreation
✔ Strong technology and aerospace economy
✔ Multiple VA healthcare systems
✔ Veteran employment assistance
✔ Access to numerous colleges and universities
✔ Military experience translates well into several major industries
Cons
✖ High housing costs
✖ State income tax
✖ Military retirement is not completely tax-free
✖ Traffic and population growth
✖ Winters and mountain weather can be challenging
✖ Some rural areas have fewer employment and healthcare options
Is Colorado Right for You?
Colorado is a particularly strong choice for Veterans who want to stay close to the military mission without staying in uniform.
If your background is in aerospace, cybersecurity, intelligence, engineering, communications, logistics or space operations, Colorado deserves a serious look. The state’s military installations and defense ecosystem create an unusually direct bridge between military experience and civilian employment.
It’s also a strong choice for Veterans who prioritize outdoor recreation and an active lifestyle.
The biggest question is affordability.
Colorado’s housing market can make the state difficult for Veterans entering lower-paying civilian careers, and military retirees should remember that Colorado does not completely exempt military retirement income from state taxes.
So Colorado may be a particularly good fit if you’re:
- Pursuing a defense or aerospace career
- Interested in Space Force-related industries
- Looking for technology or engineering opportunities
- Using military experience to move into federal employment
- Comfortable with a higher cost of living
- Passionate about outdoor recreation
- Looking for a large Veteran community
You may want to compare other states if your top priority is low taxes, inexpensive housing or maximizing military retirement income.
For a side-by-side look at all 50 states, visit the Best States for Veterans guide.
Frequently Asked Questions
Is Colorado a good state for Veterans?
Yes. Colorado offers a large Veteran community, strong military and defense employment opportunities, extensive outdoor recreation, VA healthcare resources and access to higher education. The biggest drawbacks are housing costs and the state’s taxation of income.
Does Colorado tax military retirement?
Colorado provides deductions for qualifying military retirement income rather than completely exempting military retirement pay. Retired servicemembers under age 55 can generally deduct up to $15,000 for tax years 2022–2028, while Veterans age 55 and older may qualify for a different pension and annuity subtraction subject to applicable limits.
What are the best cities in Colorado for Veterans?
Colorado Springs is particularly strong for military and defense careers. Denver is better suited to Veterans pursuing a broad civilian job market, while Aurora offers access to Buckley Space Force Base and the Rocky Mountain Regional VA Medical Center. Fort Collins and Grand Junction offer smaller-community alternatives with strong quality-of-life advantages.
Does Colorado have good VA healthcare?
Yes. Colorado has major VA healthcare systems in eastern and western Colorado, along with outpatient clinics and Vet Centers throughout the state. The Rocky Mountain Regional VA Medical Center is located in Aurora, while the Grand Junction VA Medical Center serves western Colorado.
Do Veterans get in-state tuition in Colorado?
Qualifying Veterans can receive in-state tuition classification under Colorado law, and eligible Veterans and dependents using qualifying federal education benefits may also qualify as in-state students under federal “covered individual” rules.
Is Colorado affordable for Veterans?
Colorado is generally more expensive than the national average, particularly for housing. The state’s 2020–2024 median owner-occupied home value was $539,400, with median gross rent of $1,761.
Does Colorado have a large military community?
Yes. Colorado has several major military installations, including Fort Carson, Buckley Space Force Base, Peterson Space Force Base, Schriever Space Force Base and the U.S. Air Force Academy.
