Colorado sales tax

Updated

Colorado charges a state sales tax of 2.9%. Local jurisdictions add their own on top, averaging 4.99%, which brings the typical combined rate to 7.89%. That combined rate is the 16th highest of the 51 US states and DC.

What is the Colorado sales tax rate in 2026?

Colorado sales tax rates, 2026 (reviewed August 30, 2026)
ComponentRateWhat it means
State rate 2.9% Charged everywhere in Colorado.
Average local rate 4.99% A statewide average, not the rate at any one address. Your city or county may be higher or lower.
Typical combined rate 7.89% State plus average local. This is the figure usually quoted for Colorado.

To put the numbers in a sentence: the Colorado state rate is 2.9%, the average local rate is 4.99%, and the typical combined rate is 7.89%.

Do local jurisdictions add their own sales tax in Colorado?

Yes. The 4.99% figure above is a statewide average, which means it is wrong for almost every specific address. Two shops a few miles apart can charge different totals on the same item because they sit in different taxing jurisdictions. If you are collecting tax, or checking a receipt, the average is a sanity check and not an answer. Use the official lookup below.

What is the sales tax rate in my county in Colorado?

Every one of Colorado's counties has its own page with the rate, its components, and what the rate does not cover: Colorado sales tax by county. That is where the question is usually settled, because a statewide average is wrong for almost every specific address.

What is unusual about sales tax in Colorado?

Over 70 home-rule cities (e.g. Denver, Colorado Springs) administer and audit their own sales tax separately from the state, so local rules and rates vary widely; groceries generally exempt from state tax.

How do I calculate sales tax on a purchase in Colorado?

Multiply the taxable price by the combined rate. On a $100 purchase at the typical Colorado combined rate of 7.89%, the tax is $7.89, for a total of $107.89. On a $1,000 purchase the tax is $78.90.

Two things change that arithmetic. Your actual local rate may differ from the statewide average, and not everything is taxable: most states exempt some combination of groceries, prescription drugs and certain services. Use the sales tax calculator to run a different amount or a different state.

When does a business have to collect Colorado sales tax?

A business with a physical presence in Colorado has always had to register and collect. Since the Supreme Court's 2018 Wayfair decision, a remote seller with no physical presence also has to collect once it crosses the state's economic nexus threshold.

In Colorado that threshold is $100,000 in sales, with no transaction-count test, measured over the current or previous calendar year. Note that exempt sales count toward the threshold in Colorado, so you can cross it on revenue you never charged tax on.

Colorado's 200-transaction prong was repealed effective April 14, 2019, leaving a $100,000 gross-sales-only test. Out-of-state retailers with economic nexus generally register with the state and separately with each home-rule city where they have nexus.

You can check your own numbers against every state with the economic nexus checker.

How do I find the exact sales tax rate for an address in Colorado?

Use the state's own lookup rather than an average. Colorado publishes an official rate finder at https://salestaxlookup.colorado.gov/, which returns the combined rate for a specific address. That is the figure that governs what you charge or what you should have been charged.

The flat truth on Colorado sales tax

The number worth remembering is 7.89%, the typical combined rate, but treat it as an estimate. It is a statewide average, and your address decides the real figure.

See also: Colorado property tax by county and state income tax rates.

Sources

  • Colorado Department of Revenue / Tax Foundation, State and Local Sales Tax Rates (Jan. 2026)
  • Colorado official rate lookup
  • Colorado economic nexus guidance (Colorado Department of Revenue, Out-of-State Businesses page)
  • Rates reviewed August 30, 2026. State base rates verified against each state's Department of Revenue; average local rates from the Tax Foundation and are statewide averages, not the rate at any single address. Use officialLookupUrl for an exact combined rate.