Colorado Sales Tax Guide

Ready to register in Colorado? Apply for your Colorado sales tax permit online – it only takes a few minutes.

Start your application »

Colorado Sales Tax Guide

Everything your business needs to know about Colorado sales tax registration, rates, and compliance. Colorado has one of the lowest state rates at 2.9%, but local taxes from cities, counties, and special districts can bring combined rates up to 11.2%.

Quick Facts

State Sales Tax Rate2.9%
Local Tax Range0% – 8.3% (varies by location)
Combined Rate Range2.9% – 11.2%
Registration Cost$16 fee + $50 refundable deposit
Processing TimeImmediate to 5 business days
Governing AgencyColorado Department of Revenue (CDOR)
License RenewalDecember 31 of odd-numbered years

Who Needs a Colorado Sales Tax License?

If your business sells tangible personal property or certain taxable services in Colorado, you must obtain a sales tax license. This applies to:

  • Retail stores and e-commerce sellers
  • Restaurants and food service businesses
  • Short-term rental operators
  • Vendors at fairs, festivals, and craft shows
  • Businesses with economic nexus in Colorado

Even if you are located outside Colorado, you may need to register if you exceed $100,000 in annual Colorado sales (economic nexus threshold).

Understanding Colorado’s Home-Rule System

Colorado operates a unique “home-rule” tax system. This means many cities ? including Denver, Colorado Springs, Aurora, and others ? administer their own sales taxes separately from the state. You may need to:

  • Register with the state for state-collected taxes
  • Register separately with home-rule cities where you do business
  • File multiple returns if selling in multiple jurisdictions

The Sales & Use Tax System (SUTS) simplifies this by allowing single-point registration and filing for participating home-rule cities.

Explore Our Colorado Guides

How to Get Your License

Step-by-step instructions for registering with the Colorado Department of Revenue, including Form CR 0100 requirements and online application tips.

Rates and Fees

Complete breakdown of the 2.9% state rate plus local tax information. Learn how to look up rates for your specific location.

Business Licensing

Beyond sales tax ? understand the additional licenses and registrations your Colorado business may need, including Secretary of State filings.

CDOR Contact Info

Phone numbers, addresses, email contacts, and online resources for the Colorado Department of Revenue.


Compare Colorado to Other States

Considering where to base your business or expand operations? See how Colorado compares:

  • Florida 6% state rate, no state income tax
  • Texas 6.25% state rate, no state income tax
  • California 7.25% state rate, larger market
  • New York 4% state rate, complex local structure

Official Resources

For official forms and filings, visit the Colorado Department of Revenue directly:

Want assistance with your application? Our private filing service guides you through the Colorado sales tax registration process with expert review and support. See how we can help ?

Scroll to Top