Which state is better for veterans — New Mexico or Colorado?
There's no universal answer; the better state depends on your priorities. Below are the factors that most often decide the question.
If you're a military retiree
Both retirement income tax and property tax matter most in retirement. New Mexico taxes military retirement pay (new mexico exempts up to $30,000 (single)/$45,000 (joint) of military retirement income (2024+, phased increase). most retirees see full exclusion.), while Colorado taxes military retirement pay (colorado allows a pension/annuity subtraction (up to $24,000 for age 65+, less for 55–64) that effectively shelters most military retirement pay.). On property, New Mexico offers a full homestead exemption to 100% P&T veterans, and Colorado offers a partial property tax reduction.
If you have school-age children
New Mexico's headline program is the New Mexico Vietnam Veterans Scholarship & Children of Deceased Veterans — New Mexico offers scholarships for Vietnam veterans pursuing undergraduate study at NM public colleges, plus tuition waivers for children of NM veterans killed in service or POW/MIA. Colorado's is the Colorado Dependents Tuition Assistance Program — Tuition assistance at Colorado state-supported institutions for dependents of veterans who died in service or from service-connected causes, or who are 100% permanently disabled. Colorado National Guard members also qualify for state tuition assistance up to 100%.
If you're still on active duty
Proximity to a major installation matters for housing markets, healthcare options (Tricare), and post-service employment networks. New Mexico hosts 4 significant installation(s) including Kirtland AFB, Holloman AFB, Cannon AFB.Colorado hosts 6 including U.S. Air Force Academy, Peterson SFB, Schriever SFB.
Climate and lifestyle
New Mexico: High desert climate with sunny days, low humidity, cool nights, and varied terrain from desert to alpine. Colorado: High-altitude semi-arid climate with sunny winters, dry summers, and snowy mountain seasons.