As of January 1, 2026, the Colorado sales tax rate is 2.90%. But counties, municipalities, and special districts layer additional taxes on top of that base rate, and the combined rate on any given transaction can range from 2.90% to above 11.00%. Because Colorado is a home rule state, many of its largest cities also run their own tax systems that are separate from the state’s.

Below, we’ll go over how Colorado’s sales tax system works, how to calculate the correct combined rate, where local and special district taxes apply, and what the structure means for your compliance obligations as a business.

Highlights

• While Colorado’s statewide base sales tax rate is 2.90%, county, municipal, and special district taxes routinely push combined rates much higher.

• Home rule cities such as Aurora, Boulder, and Denver administer their own sales taxes independently and require businesses to register and file with them.

• Businesses that reach Colorado’s economic nexus threshold must collect and remit sales tax even if they don’t have a physical presence in the state.

What is the Colorado sales tax rate?

Colorado’s state sales tax rate is 2.90%, but most transactions carry other sales taxes as well. Counties, municipalities, and special districts can all layer their own sales taxes on top of that 2.9%, which brings combined sales tax rates above 11.00% in some places.

How do Colorado sales taxes work?

Colorado uses destination-based sourcing for most retail sales. This means the tax rate is determined by where the buyer receives the product rather than where the seller is located.

Who collects taxes

The Colorado Department of Revenue (CDOR) collects state, county, and some municipal taxes through a single return. But many of Colorado’s larger cities (e.g., Aurora, Boulder, Denver, Fort Collins) administer and collect their own sales taxes independently from the state system. These cities have their own tax rules and processes. Businesses need to register with home rule cities where it’s required, as those cities can audit independently.

What’s taxable

In Colorado, tangible personal property is generally taxable, except for groceries and prescription drugs, which are exempt. Since Colorado is a home rule state, some local jurisdictions administer their own sales taxes and can define their own tax base.

Services are typically not taxed, with some exceptions. Taxable services include telecommunications, certain utility services for commercial use, lodging, and prepared foods. Local exemptions might not always match state rules, meaning that while a transaction might be exempt from state sales tax it could still be subject to city or county rates.

Nexus thresholds

Businesses that bring in more than $100,000 in Colorado sales in the current or prior calendar year have met the sales tax nexus threshold. They must collect and remit sales tax, even if they don’t have a physical presence in the state. This also applies to remote sellers and marketplace facilitators.

How do you calculate sales tax in Colorado?

To calculate sales tax for a transaction, you need the full combined rate for the specific location where the buyer receives the product. That involves stacking the 2.90% state rate, the county rate, the city rate, and any applicable special district rates (e.g., for cultural or stadium districts).

To give one example, as of 2026, a sale in Denver carries the 2.90% state rate, a 5.15% Denver city rate, and additional district taxes totalling 1.10%. That adds up to a combined rate of 9.15%. Meanwhile, a sale in unincorporated El Paso County might carry a combined rate closer to 5.13%.

Manually determining combined rates for every jurisdiction is difficult, especially if you’re selling across multiple Colorado locations or shipping statewide. Stripe’s sales tax calculator can help you figure out the correct rate by location.

What are Colorado’s sales tax rates by city?

Let’s look at the minimum combined sales tax rate (i.e., state and city sales tax combined) for some of Colorado’s largest cities. Keep in mind that actual rates might be higher when considering county rates and any additional special districts. Rates can be found using Colorado’s Sales Tax Lookup tool.

Broomfield and Denver are considered consolidated city-counties. This means they do not apply separate county sales tax. In other Colorado cities, sales are typically subject to city and county taxes, in addition to the base state rate.

What are Colorado’s sales tax rates by county?

County rates apply to sales in unincorporated areas and stack with any applicable city rate. Below, we’ll look at some of Colorado’s counties and their combined minimum rates (i.e., state plus county taxes). These rates do not include city or special district rates.

*Does not charge a county tax rate

What are other local sales taxes in Colorado (CO)?

Colorado has 756 specific geographic areas, all with different sales tax rates and bases. Several special taxing districts apply across wide geographic areas:

• Regional Transportation District (RTD): This 1.00% tax covers the Denver metro area.

• Scientific and Cultural Facilities District (SCFD): This 0.10% tax also covers the Denver metro area.

• Football Stadium District: This 0.10% tax also covers metro Denver.

• Various improvement and emergency service districts: Rates here vary from 0.25%–8.00%.

The table below shows the typical ranges of different local tax rate ranges in Colorado, as well as the overall combined range.

2026 Colorado sales tax range

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, value-added tax (VAT), and goods and services tax (GST) on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.