Colorado is a destination-based state (sales are taxed where the buyer is located).
- Sales tax is charged on the sale, use, storage, or consumption of tangible personal property (TPP) in Colorado
- Sales made for resale at retail are not taxed
Businesses may file by going to Revenue Online.
The state sales tax rate is 2.9%.
Retail marijuana products are exempt from the state sales tax rate and subject to a Retail Marijuana Sales Tax rate of 15%.
The state allows a large variety of local city and county taxes in addition to the state sales tax rate. For local tax rates, go to Colorado Sales/Use Tax Rates.
All Colorado counties that impose a sales tax are state-collected, except Denver County and Broomfield County. Some cities are also “self-collected.” If you sell in those localities, you must contact those governments directly.
For a fast and accurate sales tax rate lookup by zip code, use our up-to-date calculator below.
Look up your Colorado sales tax rate:
Food for home consumption and food sold in vending machines is tax exempt. Prepared foods are taxed at the full rate.
Businesses activities that establish a minimum tax connection to the state include:
- Having employees or independent contractors in the state
- Regularly shipping goods via a contract carrier into Colorado
- Maintaining an office, distributing house, salesroom, warehouse or other places of business in Colorado
- Leasing tangible personal property that will be used in Colorado
- Engaging in delivery and installation and/or solicitation by representatives who carry inventory for sale/rental/lease (mobile vendors)
Find out more about nexus in Colorado.
Returns are due on the 20th of the month following the filing period.
Filing frequency is determined by the amount of sales tax collected monthly as follows:
- Annual filers: $15 or less per month
- Quarterly filers: Under $300 per month
- Monthly filers: $300 or more per month
Businesses that pay more than $75,000 per year in state sales tax must pay by Electronic Funds Transfer (EFT).
Penalties charged on late filing and payments are the greater of $15 or 10% of the tax due plus 0.05% for each month the tax remains unpaid, not to exceed a total of 18%.
Interest is charged at 7%.
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