Colorado
Sales Tax

General requirements

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.

Rates

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.

How food is taxed

Food for home consumption and food sold in vending machines is tax exempt. Prepared foods are taxed at the full rate.

Nexus in Colorado

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.

Filing schedule

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).

Registering to collect sales tax in Colorado

Register with the Department of Revenue at Colorado Business Express or download the CR 0100 application. You may also download the Points of Compliance Tool Kit.

Note: Out-of-state businesses must use the CR 0100 application.

Penalties

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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