Colorado Sales Tax Rates and Fees

Colorado’s sales tax structure combines a 2.9% state rate with local taxes from cities, counties, and special districts. Combined rates can range from 2.9% to over 11%. Here is everything you need to know about Colorado tax rates.

Colorado State Sales Tax Rate

The statewide base rate is 2.9% — one of the lowest state rates in the nation. However, local taxes significantly increase the total rate in most areas.

Local Sales Taxes

In addition to the 2.9% state rate, Colorado localities impose their own sales taxes:

• County taxes: 0% – 2%
• City taxes: 0% – 8.3%
• Special district taxes: Various rates for RTD, scientific/cultural, etc.

Sample Combined Rates (2025)

Note: Rates change frequently. Use the CDOR rate lookup tool at tax.colorado.gov for current rates.

How to Look Up Your Exact Rate

Because rates vary by exact location, Colorado provides a GIS-based lookup tool:

1. Visit tax.colorado.gov
2. Navigate to Sales Tax Rate Lookup
3. Enter the specific street address
4. The tool returns all applicable state, county, city, and special district rates

This is essential for accurate tax collection, especially if you deliver to customers at different locations.

Home-Rule vs. State-Administered Cities

Colorado has two types of local tax jurisdictions:

• State-administered: The state collects and remits local taxes on your behalf
• Home-rule (self-administered): You must register, file, and pay directly with the city

Major home-rule cities include Denver, Colorado Springs, Aurora, Lakewood, Arvada, Boulder, and about 70 others. The SUTS portal helps simplify compliance with participating home-rule cities.

What Is Taxable in Colorado?

Taxable items include:

• Retail sales of tangible personal property
• Certain services when tied to tangible property
• Prepared food and beverages
• Lodging and short-term rentals

What Is Exempt in Colorado?

Common exemptions include:

• Groceries (food for home consumption)
• Prescription drugs and medical devices
• Most services (Colorado is service-tax-light)
• Items purchased for resale (with valid license)
• Agricultural equipment
• Manufacturing machinery

Registration Fees

To obtain a Colorado sales tax license:

• $16 license fee — prorated based on issuance date
• $50 refundable deposit — returned after you remit $50+ in sales tax

Home-rule cities may have their own registration fees.

Vendor Service Fee

Colorado has historically allowed retailers to keep a portion of collected tax as compensation for collecting. Note: Beginning January 1, 2026, the state service fee is eliminated, though local service fees may still apply.

Late Filing Penalties

If you miss a filing deadline:

• Penalty: 10% of tax due if not filed by deadline
• Interest: Accrues on unpaid amounts
• Zero returns required: You must file even if you had no sales

Related Colorado Guides