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Colorado Sales Tax

On this page you will find handy sales and use tax information about Colorado.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Colorado that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

2.900% Remote sellers are required to collect sales tax if they exceed Colorado’s economic nexus threshold.
Range of Local Rates

0% – 8.3% Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

Yes/No Some of the cities and counties do apply use tax. Remote sellers are required to collect sales tax if they exceed Colorado’s economic nexus threshold.
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

7/1/2014 – repealed effective 6/1/2019
AFFILIATE NEXUS

7/1/2014 – repealed effective 6/1/2019
REPORTING REQUIREMENTS

7/1/2017
ECONOMIC NEXUS

Grace period through 5/31/2019 – notice & reporting still required
MARKETPLACE NEXUS

10/1/2019
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

October 1, 2011 - November 15, 2011

Go to Colorado Amnesty Page
AMNESTY INCLUSION PERIODS

The overdue tax must have been due for returns or reports that needed to have been filed before December 31, 2010, including returns which the Department of Revenue granted an extension for.

TAX TYPES AND CONDITIONS

Corporate and personal income taxes, sales and use taxes and county or municipal sales taxes collected by the Dept. of Revenue, gasoline and special fuel taxes, cigarette and tobacco product taxes, severance taxes, certain local improvement district sales taxes, sales and use taxes imposed by the Regional Transportation District, Denver Metropolitan Scientific and Cultural Facilities District, Metropolitan Football Stadium, and regional transportation authorities, and local marketing and promotion taxes and county lodging and rental taxes collected by the Dept. of Revenue.
AMNESTY BENEFITS

Civil and criminal penalties, fines and 50% of interest waived on overdue tax.

Status

Inactive

Amnesty Filing Dates

October 1, 2011 to December 30, 2011

Go to City of Denver Amnesty Page
AMNESTY INCLUSION PERIODS

Applies to taxes which were due on or before June 30, 2011.

TAX TYPES AND CONDITIONS

City and County of Denver sales tax, retailer’s use tax, consumer’s use tax and occupational privilege tax.
AMNESTY BENEFITS

Waiver of penalties and half of interest due. Taxpayers using amnesty program will avoid criminal prosecution.

Administration Information
Streamlined Sales Tax Status

Non-Participating
NUMBER OF TAXING AUTHORITIES

328 Sales Tax Jurisdictions
HOME RULE AUTHORITIES

Yes – combination; state administers most counties, some cities and all special purpose districts
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE
TYPES OF EXEMPTIONS

Product types of exemptions: food, machinery, farm equipment, sales of low-emitting vehicles, school related sales, cigarettes, renewable energy components, space flight

 

Entity types of exemptions: United States government, State of Colorado, its departments and institutions, and its political subdivisions (county and local governments, school districts and special districts) in their governmental capacities, religious, charitable, scientific, testing for public safety, literary or educational; entities that foster national or international amateur sports competition, as long as no part of its activities involve providing athletic facilities or equipment; entities involved with the prevention of cruelty to children or animals. Note: the exemption does not apply to locally-collected sales tax levied by home-rule cities. Home-rule jurisdictions make their own tax regulations and they must be contacted directly for information.

 

Colorado Exemption Certificate Forms
State Links
State Tax Web Page

Colorado Department of Revenue
Rate Look-Up Page

Colorado Sales Tax Rate Look-Up
Registration Link

Register for Colorado Sales Tax
History & Fun Facts
HISTORY

  • Colorado enacted its sales tax in 1935 and adopted its use tax in 1936.
  • Colorado is notoriously one of the most difficult states for managing sales tax. It has both home rule and state-collected sales tax jurisdictions. Home-rule jurisdictions can establish their own tax laws and enforce them via audit. In 2017, the Colorado Legislature developed a Colorado Sales and Use Tax Simplification Task Force to address the complexity of the state’s sales tax system.
  • Effective July 1,2022 a retail delivery fee of $0.27 will apply to all deliveries to a Colorado location, by motor vehicle, with at least one item subject to state sales and use tax. The fee is remitted and reported on the new form DR 1786 which is due monthly on or before the 20th of each reporting period.
FUN FACTS
  • Although Colorado has a food sales tax exemption, liquor-filled candy does not qualify for it.
  • Colorado makes a distinction between food for home consumption and prepared food for sales tax exemption purposes. The state highlights this distinction in their very specific approach to packaged salads. Bagged salads that do not include dressing or utensils qualify as food for home consumption. Bagged salads that include dressing and packaged salads in the shape of a bowl that contain dressing and utensils are prepared foods subject to tax.
  • In Colorado non-essential packing is subject to a 2.9% tax. Be careful with your morning to-go coffee- because the lid is not considered essential!

Out-of-State Retailer May Collect Sales Tax According to Colorado DOR General Information Letter

In a General Information Letter dated March 4, 2024, the Colorado Department of Revenue provided clarification about the sales and use tax notice and reporting requirements for noncollecting retailers in Colorado.

Colorado Imposes New Retail Delivery Fee

Colorado will impose a $0.27 retail delivery fee beginning on July 1, 2022.

Colorado Adopts New Rule for Buyers’ Claims for Sales and Use Tax Refunds

On January 2, 2024, the Colorado Department of Revenue adopted a new rule regarding buyers’ claims for refunds of sales or use tax paid.

Colorado Localities Change to State-Administered Sales Taxes

Two Colorado localities, Town of Carbondale and City of Edgewater, made the switch from self-administered to state-administered for sales tax effective January 1, 2024.

Colorado Issues Revised Sales and Use Tax Exemption Forms

Through House Bill 22-1039, the Colorado Department of Revenue (Department) has revised the listed sales and use tax exemption forms.

Another Colorado Town Declared Home-Rule Municipality

In March 2023, Keystone voted to become a Home Rule Town with a Charter and to elect nine Charter Commission Members who draft the Charter.

The Rise of Retail Delivery Fees: Unveiling the Impact on Consumers

We are putting the Colorado Retail Delivery Fee center stage and diving into how its story has unfolded thus far.

Colorado Enacts Small Business Exemption for Retail Delivery Fee

On May 4, 2023, Colorado Governor Jared Polis signed legislation that creates an exemption from the state’s 27-cent Retail Delivery Fee (RDF) for businesses with retail sales of $500,000 or less in the prior calendar year.

Grass Seed and Erosion Control Blankets Exempt as Construction and Building Materials in Colorado

The Colorado Department of Revenue (DOR) issued a private letter ruling discussing the taxability of sales of grass seed, erosion control blankets and fertilizer to a construction contractor.

Colorado Implements Single Use Bag Fee and Single Use Plastic Bag Ban

The Colorado General Assembly has enacted House Bill 21-1162, which impacts in-state retailers, including retail food establishments, who provide single use bags to customers at the point of sale. This bill is attempting to significantly reduce the use of single use plastics due to the harm they can have on the environment.

Streaming Company’s Platform Credits Not Taxable in Colorado

Colorado has issued a private letter ruling stating that “platform credits” offered by a company that offers video streaming services are not subject to Colorado sales tax.

Colorado Enacts Exemption for Essential Hygiene Products, Effective January 1, 2023

Effective January 1, 2023, Colorado has enacted legislation creating a state-level sales and use tax exemption on the sale, storage, use or consumption of incontinence products, diapers, and period products.

Wayfair Sues Colorado City and Department of Revenue Over Undue Burdens on Out of State Taxpayers

Wayfair LLC, the defendant in the landmark 2018 ruling that created the standards for economic nexus, has filed suit in Colorado to challenge the nexus standards of the state and its home rule cities, arguing that the state\’s tax regime violates the US constitution and the standards laid out in the 2018 case.

The Colorado Retail Delivery Fee: An update two months after launch

The Colorado Retail Delivery Fee generated a great deal of confusion, frustration, and irritation for in-state and out-of-state retailers, sales tax professionals, and tax software companies during the race to be ready for the fee which was effective July 1, 2022.

Colorado Enacts COVID-19 Tax Relief for Restaurants, Bars and Mobile Food Vendors

Colorado has enacted legislation that provides a temporary deduction from state net taxable sales for qualifying bars, restaurants and mobile food service vendors.

Colorado Won’t Require Local Licenses from Remote Sellers

Colorado will no longer require remote sellers, “retailers without physical presence or with only incidental physical presence,” to have local licenses in the state’s approximately 70 home-rule cities.

Colorado Use Tax Exemption for Construction Materials Used for Public Schools

Colorado enacted a use tax exemption for construction materials used to build and renovate public schools across the state, including home rule cities.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Colorado Extends Small Retailer Sourcing Rules Exemption

Colorado has extended their small retail sourcing rules exemption, stating that small retailers in Colorado may continue to source sales to their business location regardless of where the property or service is received.

How Home Rule States Have Responded to Wayfair

Let’s take a look at three of the primary home rule states that also have a state-wide sales tax—Alabama, Colorado, and Louisiana—to understand steps taken what remote out-of-state sellers can expect.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Colorado Department of Revenue Issues Conclusion on Sales and Use Tax for Online Education Platforms

In a recent private letter ruling, the Colorado Department of Revenue concluded that subscription fees for online learning platforms are subject to the state’s sales tax and state-administered local sales tax.

Three Years of South Dakota v. Wayfair: Local Tax Issues

Learn why managing local taxes is such a large challenge for taxpayers post-Wayfair and about local efforts to simplify compliance. This is part 4 of our 5 part series on three years of the Wayfair decision.

Colorado General Assembly Has Extended the Deadline for Destination Sourcing for Small Businesses

The General Assembly of Colorado has enacted SB21-282, which exempts small businesses who make $100,000 in retail sales, from using destination sourcing requirements.