Colorado Sales
Tax Rate
Colorado has a 2.9% statewide base sales tax rate. With local district taxes added on top, combined rates can reach as high as 11.2% depending on where a purchase is made.
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2.9% – 11.2%
Colorado combined sales tax rate for 2026
*Local district tax rates vary by city and county and can change quarterly. For the exact rate at a specific address, use the official state rate lookup tool.
Sources: Colorado DOR — Sales Tax Guide. Last verified: August 14, 2026.
Colorado's state sales tax rate is 2.9% in 2026. The total sales tax rate can be much higher because cities, counties and special districts may impose additional taxes and some home-rule cities administer their own sales tax systems separately from the Colorado Department of Revenue.
Colorado's 2026 rate-change guidance confirms the 2.9% state rate. Businesses must determine which state-administered local taxes and self-collected home-rule city taxes apply to a transaction.
Source: Colorado 2026 Sales Tax Rate Changes
What Is the Colorado Sales Tax Rate in 2026?
The Colorado state sales and use tax rate is 2.9% in 2026, before local city, county and special district taxes.
| Colorado Sales Tax Component | 2026 Treatment |
|---|---|
| State sales tax | 2.9% |
| State-administered city tax | Varies by jurisdiction |
| State-administered county tax | Varies by jurisdiction |
| Special district tax | Can apply based on address |
| Self-collected home-rule city tax | Administered directly by the home-rule city |
Colorado does not have one statewide combined rate. The exact total must be determined for the transaction location.
Source: Colorado Sales Tax Guide
How to Calculate Colorado Sales Tax
Colorado sales tax is calculated on the taxable purchase price using the combined state and applicable local rates.
Taxable Purchase Price × Total Applicable Sales Tax Rate = Sales Tax
A $100 taxable sale subject only to Colorado's 2.9% state tax produces $2.90 of state sales tax. A sale inside a city, county or special district can have additional tax.
Colorado generally sources state-administered local sales tax to the location where the customer receives the taxable property.
Why Colorado Local Sales Tax Is Complex
Colorado local sales tax is more complex than in many states because some jurisdictions are administered by the state while home-rule cities can collect and administer their own tax.
A business can therefore have Colorado Department of Revenue obligations plus separate registration, collection or filing obligations with one or more home-rule cities.
Local exemptions are not always identical to state exemptions, which means a transaction can be exempt from one tax component but taxable under another local rule.
Source: Colorado Sales Tax Guide
What Is Taxable in Colorado?
Colorado generally taxes retail sales of tangible personal property, prepared food and drink, certain specifically taxed services plus short-term lodging.
- Most tangible personal property
- Prepared food and drink sold by restaurants and similar businesses
- Short-term rooms and accommodations
- Telephone and telegraph services
- Commercial gas and electric service
- Certain digital goods treated as tangible personal property
Colorado generally does not impose state sales tax on services unless a specific service is taxable by law. A home-rule city can have a broader local tax base.
Source: Colorado Sales Tax Guide
Common Colorado Sales Tax Exemptions
Colorado provides exemptions for several common categories of purchases and sales.
- Property purchased for resale
- Certain food for home consumption
- Certain manufacturing machinery and machine tools
- Qualifying government or exempt-organization purchases
- Other property or transactions specifically exempt under Colorado law
A state exemption does not always apply identically to every local jurisdiction. Sellers should review state-administered local exemptions and separate home-rule city rules.
Colorado Sales Tax vs. Consumer Use Tax
Colorado consumer use tax applies when taxable property is purchased for use in Colorado and the seller does not collect the correct sales tax.
| Tax | Typical Situation |
|---|---|
| Sales tax | Retailer collects tax on a taxable sale |
| Consumer use tax | Purchaser owes tax because the seller did not collect sufficient tax on a taxable purchase |
The Colorado state consumer use tax rate is also 2.9%. Local use taxes can apply in cities, counties and special districts.
Source: Colorado Consumer Use Tax
Colorado Remote Seller Economic Nexus
A remote retailer can be required to collect Colorado sales tax when its Colorado retail sales exceed the state's economic nexus threshold.
Colorado guidance uses a $100,000 threshold for retail sales of tangible personal property, commodities or services into Colorado. A seller that crosses the threshold during the current year generally must begin collection by the first day of the first month beginning at least 90 days after exceeding the threshold.
Marketplace-facilitated sales and direct sales can be treated differently, so multichannel sellers should review the marketplace rules before applying the threshold.
Source: Colorado Retail Delivery Fee and Economic Nexus Guidance
Colorado Sales Tax License and Filing Requirements
Businesses selling, renting or leasing taxable tangible personal property generally need a Colorado sales tax account or license and must file returns for the periods assigned by the Department.
The Department's current filing guidance uses the amount of sales tax collected per month to determine filing frequency.
| Average or Estimated Monthly Sales Tax | General Filing Frequency |
|---|---|
| $15 or less | Annual, when permitted |
| More than $15 but under $600 | Quarterly |
| $600 or more | Monthly |
Returns are generally due on the 20th day of the month following the end of the filing period. Retailers must file even when no sales were made and no tax is due.
Source: Colorado Sales Tax Filing Information
What Changed for Colorado Sales Tax in 2026?
Colorado kept the state sales tax rate at 2.9% for 2026, but local rates and administrative rules continued to change.
The Department's January 1, 2026 rate-change list includes new or changed city and county rates. Colorado also eliminated the state sales tax retailer service fee beginning January 1, 2026, although a service fee can still be available for certain state-administered local taxes.
Source: Colorado 2026 Sales Tax Rate Changes
Source: Colorado Sales Tax Guide
Frequently Asked Questions
What Is the Colorado Sales Tax Rate in 2026?
The Colorado state sales and use tax rate is 2.9% before applicable local taxes.
Does Colorado Have Local Sales Tax?
Yes. Cities, counties and special districts can impose additional taxes and some home-rule cities administer their own sales tax.
Are Services Taxable in Colorado?
Most services are not subject to Colorado state sales tax unless specifically taxed, though home-rule cities can have different rules.
What Is Colorado Use Tax?
Consumer use tax applies when taxable property is used in Colorado and the seller did not collect sufficient sales tax.
What Is the Colorado Remote Seller Threshold?
Colorado generally uses a $100,000 Colorado retail sales threshold for economic nexus.
Do I Still File a Colorado Sales Tax Return If I Had No Sales?
Yes. Registered retailers must file for each required period even when no sales were made and no tax is due.