The Colorado state sales tax rate is 2.9% in 2026. When county and city taxes are added, the combined rate ranges from 2.9% in areas with no local additions up to 10.0% in the highest-taxed jurisdictions. The most populated areas of Colorado — including Denver County — have a combined rate of 8.81%.
Colorado has the lowest state base sales tax rate in the US at just 2.90%. However, local jurisdictions can add significant amounts — Denver’s combined rate reaches 8.81%.
💡 Quick Reference: $100 purchase in Colorado at the average combined rate costs approximately $106.45 after tax. Use the calculator above to find the exact amount for any county or city in Colorado.
Groceries in Colorado are exempt from Colorado state sales tax. Clothing purchases are taxable at full rate. Prescription drugs and medical devices are generally exempt from sales tax in Colorado, as they are in most US states.
Common Colorado Sales Tax Exemptions
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Prescription Medicine
Prescription drugs are fully exempt from Colorado sales tax.
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Grocery Food
Unprepared groceries are exempt from Colorado state sales tax in Colorado.
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Manufacturing Equipment
Equipment used directly in manufacturing is generally exempt.
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Agricultural Supplies
Seeds, livestock, and farm feed are generally exempt in Colorado.
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Clothing
Clothing is taxable at full rate in Colorado.
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Textbooks
Textbooks for educational use are often exempt or reduced rate.
How Does Colorado Sales Tax Work?
Sales tax in Colorado is collected at the point of purchase by retailers and remitted to the Colorado Department of Revenue. The total rate you pay is the sum of the Colorado state rate (2.9%) plus any applicable county and city rates in your location.
Businesses with a physical presence in Colorado — including offices, warehouses, or employees — have sales tax nexus and must collect and remit Colorado sales tax. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, remote sellers with $100,000+ in Colorado annual sales or 200+ Colorado transactions must also register and collect Colorado sales tax even without a physical presence.
📅 Colorado Sales Tax Filing: Returns are typically due on the 20th of the month following the reporting period. Filing frequency (monthly, quarterly, or annual) is assigned by the Colorado Department of Revenue based on your sales volume. File and pay online through the Colorado state tax portal.
The Colorado state sales tax rate is 2.9% in 2026. With county and city additions, combined rates range from 2.9% to 10.0% depending on your location. The most common combined rate in populated Colorado counties is around 6.45%. Use the calculator above to find the exact rate for your specific county and city.
Groceries in Colorado are exempt from Colorado state sales tax. This applies to unprepared food items purchased at grocery stores. Prepared food (restaurant meals, hot food from a deli counter) is generally taxed at the full combined rate regardless of state grocery exemptions.
To calculate Colorado sales tax, multiply your purchase amount by the combined rate (as a decimal). For example, a $200 purchase in Denver County at 8.81%: $200 × 0.881 = $17.62 in sales tax, making the total $217.62. Or simply use the free Colorado sales tax calculator at the top of this page.
Yes, if you meet Colorado’s economic nexus threshold. Remote sellers must collect and remit Colorado sales tax if they have $100,000 or more in Colorado sales or 200+ separate Colorado transactions in a calendar year. This applies to all online sellers including Amazon FBA sellers, Shopify stores, and marketplace sellers. Marketplace facilitators like Amazon, Etsy, and eBay collect and remit on behalf of their sellers in Colorado.
Most services are not subject to Colorado sales tax, which primarily applies to the sale of tangible personal property. However, certain services are taxable in Colorado — including some digital services, repair services, and services that are inseparable from a taxable product. Consult the Colorado Department of Revenue or a tax professional for guidance on specific service types.
The highest combined sales tax rate in Colorado is 10.0%, which occurs in areas with the maximum local tax additions on top of the 2.9% state base rate. The lowest rate is the state base rate of 2.9% in areas with no local taxes. See the county-by-county table above for the exact rate in each area of Colorado.