What is the homestead exemption in Colorado and how do I claim it?

Colorado significantly increased its creditor homestead in 2022 and provides a senior property-tax exemption.

1. Two Concepts

Colorado has (a) the constitutional Senior/Disabled Veteran Property Tax Exemption administered by county assessors and (b) a creditor/bankruptcy homestead under C.R.S. § 38-41-201.

2. Creditor / Bankruptcy Homestead

§ 38-41-201 (as amended by HB 22-1099) protects $250,000 of equity in a primary residence; the cap rises to $350,000 if the owner or dependent is 60+, disabled, or a disabled veteran. These amounts replaced the prior $75,000/$105,000 caps.

3. Automatic vs Declaration

The exemption auto-attaches to the principal residence; no recording is required.

4. Federal Bankruptcy Cap

Colorado opted out of federal exemptions (§ 13-54-107). BAPCPA § 522(p)'s $189,050 cap can apply for property acquired within 1,215 days, partially limiting the state amount.

5. Property-Tax Homestead

Colo. Const. art. X § 3.5 exempts 50% of the first $200,000 of actual value for homeowners 65+ who have occupied the home for 10+ years (Senior Homestead Exemption). Disabled veterans receive the same benefit with no residency duration. Funding is subject to annual legislative appropriation.

6. Filing Property-Tax Exemption

File Form 15-DPT-AR (Senior) or 15-DPT-AR (Veteran) with the county assessor by July 15.

7. Spousal Protections

Colorado is not a community-property state, but both spouses must sign to release homestead rights (§ 38-41-202).

8. Loss Triggers

Abandonment, sale without reinvestment within two years (§ 38-41-207), or conversion to rental defeats the exemption.

9. Foreclosure & Forced Sale Exceptions

Purchase-money mortgages, property taxes, mechanic's liens, federal liens, child support, and pre-homestead judgments override the exemption.

This is legal information, not legal advice.