Updated September 5, 2026. Quick answer: Colorado exempts up to $250,000 of home equity from a money judgment, rising to $350,000 if the owner, the owner’s spouse, or a dependent living in the home is elderly (60+) or disabled.
This is protection against an ordinary money judgment creditor under Colo. Rev. Stat. § 38-41-201 (as amended by S.B. 22-086, eff. Apr. 7, 2022), a different question from a property tax bill or exemption, which this page does not cover.
Colorado homestead exemption at a glance
| Protected amount | Colorado exempts up to $250,000 of home equity from a money judgment, rising to $350,000 if the owner, the owner’s spouse, or a dependent living in the home is elderly (60+) or disabled. |
|---|---|
| Filing/declaration | Conditional: The exemption is created automatically for any debt incurred on or after July 1, 1975, once the property is occupied as a home; for older debts, the owner or spouse must record a written homestead declaration with the county clerk and recorder. |
| Married couples / joint owners | If the property is a homestead held in joint tenancy by spouses, the exemption continues on the surviving spouse’s interest after the other spouse’s death. |
| If you sell the home | Proceeds from a sale of the homestead stay exempt for three years after the owner receives them, as long as they’re kept separate and identifiable, and the exemption carries over if the owner buys a new home with them. |
How it works in Colorado
- Conditional filing rule. The exemption is created automatically for any debt incurred on or after July 1, 1975, once the property is occupied as a home; for older debts, the owner or spouse must record a written homestead declaration with the county clerk and recorder.
- Married couples and joint owners: If the property is a homestead held in joint tenancy by spouses, the exemption continues on the surviving spouse’s interest after the other spouse’s death.
If you sell the home
Proceeds from a sale of the homestead stay exempt for three years after the owner receives them, as long as they’re kept separate and identifiable, and the exemption carries over if the owner buys a new home with them.
What it does not protect against
The exempt amount is calculated net of existing liens and encumbrances on the property, i.e., the protection applies to equity value only, after mortgage and other lien debt is accounted for.
Read it yourself
Verbatim from Colo. Rev. Stat. § 38-41-201 (as amended by S.B. 22-086, eff. Apr. 7, 2022): “Every homestead in the state is exempt from execution and attachment arising from any debt, contract, or civil obligation not exceeding in actual cash value in excess of any liens or encumbrances on the homesteaded property in existence at the time of any levy of execution thereon: (a) The sum of two hundred fifty thousand dollars if the homestead is occupied as a home by an owner or an owner’s family; or (b) The sum of three hundred fifty thousand dollars if the homestead is occupied as a home by an owner who is elderly or disabled, an owner’s spouse who is elderly or disabled, or an owner’s dependent who is elderly or disabled.” Read the full official text before relying on any figure here. A second citation, the Colorado General Assembly’s own bill page for S.B. 22-086, the act that set the current dollar figures, is available here. Exemption law is fact-specific, and this is a source-backed planning guide, not individualized legal advice.