Colorado is a destination-based state (sales are taxed where the buyer is located).
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.
Food for home consumption and food sold in vending machines is tax exempt. Prepared foods are taxed at the full rate.
Businesses establish a minimum tax connection to the state if any of the following apply:
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:
Businesses that pay more than $75,000 per year in state sales tax must pay by Electronic Funds Transfer (EFT).
Note: Out-of-state businesses must use the CR 0100 application.
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%.