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Colorado Sales Tax Calculator

Calculate sales tax for purchases in Colorado (CO).

State Tax Rate

2.9%

Avg. Local Rate

5.0%

Combined Rate

7.9%

US Sales Tax Calculator

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Sales Tax in Colorado

Colorado levies a state sales tax rate of 2.9% on most retail purchases of tangible personal property and select services. Local jurisdictions may add their own taxes, bringing the average combined rate to 7.9%. Actual local rates vary by city and county, so the total tax on a given purchase depends on where the transaction takes place.

Common exemptions in many states include groceries, prescription drugs, and certain medical equipment, though specific exemptions vary. Businesses selling taxable goods or services in Colorado must register for a sales tax permit and collect tax at the point of sale. Online sellers with sufficient economic nexus in Colorado are also required to collect and remit sales tax.

Frequently Asked Questions

What is the sales tax rate in Colorado?
The state sales tax rate in Colorado is 2.9%. When combined with the average local rate of 5.0%, the typical combined sales tax rate is 7.9%.
Does Colorado have local sales taxes?
Yes, localities in Colorado can impose additional sales taxes. The average local rate is 5.0%, but the actual rate depends on the specific city or county where the purchase is made. Combined with the state rate of 2.9%, the average total is 7.9%.
What items are exempt from sales tax in Colorado?
Sales tax exemptions in Colorado vary but commonly include prescription medications and certain medical devices. Many states also exempt or reduce the rate on groceries, clothing, and other essential items. Check with the Colorado Department of Revenue for a complete list of exempt items.
How do I file sales tax in Colorado?
Businesses registered to collect sales tax in Colorado must file returns with the state's Department of Revenue on a monthly, quarterly, or annual basis depending on the volume of sales. Returns typically include the total taxable sales, the tax collected, and any allowable deductions or credits.

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