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7/1/2014 – repealed effective 6/1/2019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7/1/2014 – repealed effective 6/1/2019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

December 1, 2018 with grace period through May 31, 2019
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
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!

Colorado Increases Retail Delivery Fee Rate, Effective July 1, 2026

The Colorado Department of Revenue recently reviewed the Retail Delivery Fee (RDF) for the upcoming fiscal year and increased it from $0.28 to $0.31, effective July 1, 2026. This revision is meant to adjust for inflation and ensure the revenue…

Colorado Enacts Exemption for Sales by Destination Management Companies

Colorado has enacted a sales and use tax exemption for destination management companies (DMCs) under S.B. 128, effective July 1, 2027. See which services qualify.

Colorado Appeals Court Rules Netflix Subscriptions Are Subject To Sales Tax

A Colorado appeals court has ruled that Netflix subscriptions are subject to sales tax. Learn how this decision impacts digital service providers and tax compliance nationwide.

Colorado Amends Rules for Sales Tax Return Filing Frequency Basis

Colorado has amended its sales tax filing-frequency rules, including updated thresholds that allow some retailers collecting less tax each month to file less often. Learn what changed, when the new rules apply, and how the update affects monthly, quarterly, and annual filers.

Colorado Confirms Sales Tax Exemption for Boxed and Bulked Bakery Items

A recent Colorado letter ruling (PLR 25‑004) confirms that multi‑packs, individual boxed bakery items, and bulk bakery orders are exempt from state sales tax when sold for home consumption. Learn the details and qualifying conditions.

Colorado Private Letter Ruling Defines Marketplace Facilitator’s Role in Firearms Sales

A Colorado private letter ruling (PLR 25‑002) finds that marketplace facilitators are not liable for the state’s firearms and ammunition excise tax. Learn how this impacts sales platforms and sellers.

Colorado Eliminates State Sales Tax Vendor Fee Effective January 1, 2026

Colorado will eliminate the state sales tax vendor fee, allowing retailers to retain a small collection allowance, starting January 1, 2026. Read what this means for retailers and state revenue.

Colorado Releases Letter Ruling Addressing Third-Party Shipping

Colorado’s Department of Revenue ruled that if the buyer arranges third-party shipping from the seller’s location, the sale is sourced to the buyer’s known address—not the seller’s—impacting sales tax collection.

Colorado Retail Delivery Fee Decrease Effective July 2025

Each year the Colorado Department of Revenue assesses the Retail Delivery Fee (RDF) and posts the rate for the upcoming fiscal year. For the July 2025- June 2026 period, the rate has decreased to $0.28. Colorado taxpayers will need to…

Colorado To Update Sales Tax Search Function to Include Taxpayer Name and Identification Number

Colorado is expanding its sales tax search tool to display taxpayer names and account IDs. Learn how this update impacts tax professionals and business compliance.

Electric Vehicle Charging Station Fees Are Not Subject to Colorado Sales Tax

The Colorado Department of Revenue has issued a General Information Letter (GIL) regarding whether electricity sold at electric vehicle charging stations by entities other than electric utilities is subject to Colorado sales tax. The GIL is in response to a…

Colorado Aims to Speed Up Sales and Use Tax Filing with New System

The Colorado Department of Revenue has launched enhancements to SUTS (Sales and Use Tax System) to simplify and speed up sales and use tax filing for businesses.

Your Guide to Sales Tax in the Mountain Region

Let\’s explore the key developments shaping sales tax in the Mountain Region, empowering you with the knowledge to navigate these changes confidently and efficiently.

Colorado Rules That DNA Testing with Tangible Personal Property is Nontaxable Service

The Colorado Department of Revenue (DOR) issued a private letter ruling regarding a company’s sales of ancestral and health reports and the saliva kits used to collect customers’ DNA for generating the reports.

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.

Subscription-Based Membership Fee Not Taxable in Colorado

The Colorado Department of Revenue has issued a private letter ruling regarding the taxability of subscription-based membership fees, the primary benefit of which is to provide the purchaser with free delivery.

Colorado Changes Requirements for Home Rule Jurisdictions Not Using SUTS

On April 4, 2024, Colorado\’s Governor signed H.B. 1041 into law, aimed at streamlining sales and use tax filing processes.

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.