Colorado's statewide sales tax is 4.63 percent

Colorado charges a statewide sales tax of 4.63 percent on most goods and services. This is the base rate that applies everywhere in the state. However, your actual tax at checkout will almost always be higher because counties and cities add their own local sales taxes on top of the state rate.

The total you pay depends on where you shop. A purchase in Denver will have a different tax rate than the same purchase in Boulder or Colorado Springs, even though the state portion stays at 4.63 percent. Local rates range from about 2 percent to over 8 percent, so your final bill can vary significantly by location.

Key Takeaways

  • Colorado's state sales tax is 4.63 percent, but local taxes add 2 to 8 percent more depending on your county and city.
  • Most goods are taxed, but groceries, prescription medications, and some medical equipment are exempt from sales tax.
  • Denver's combined rate is 10.25 percent, while some mountain towns charge 7.65 percent or less.
  • You can find your exact local rate by entering your address on the Colorado Department of Revenue website or asking a retailer.

How local taxes stack on top of the state rate

When you buy something in Colorado, you pay the state's 4.63 percent plus whatever your county and city have added. A county might add 2 percent, and your city might add another 3 percent. That brings your total to 9.63 percent before you even leave the register.

Denver, for example, charges 4.63 percent state plus 5.62 percent local, totaling 10.25 percent. Fort Collins charges 4.63 percent state plus 3.87 percent local, for a total of 8.5 percent. Boulder is 4.63 percent state plus 4.08 percent local, totaling 8.71 percent. These differences add up quickly on large purchases.

Some counties have no additional county tax but allow cities to set their own rates. Others have both county and city taxes. The only way to know your exact rate is to check where you live or where you are shopping.

What items are exempt from sales tax in Colorado

Not everything you buy is taxed. Groceries — food you cook at home — are not subject to sales tax in Colorado. This includes meat, produce, dairy, bread, and canned goods. Restaurant meals and prepared foods are taxed, but raw ingredients are not.

Prescription medications are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but anything you need a prescription to buy is not. Medical equipment prescribed by a doctor, such as wheelchairs or oxygen equipment, is typically exempt as well.

Clothing and shoes are taxed in Colorado, unlike some other states. Children's clothing is also taxed. Services like haircuts, repairs, and labor are generally taxed too, though the rules vary by type of service.

Finding your exact local sales tax rate

The Colorado Department of Revenue maintains a sales tax rate lookup tool on its website. You enter your address, and it shows you the exact combined state and local rate for that location. This is the most reliable way to know what you will pay.

You can also call your city or county assessor's office and ask directly. Many retailers, especially larger chains, can also tell you the rate for their location. If you are shopping online and the seller is based in Colorado, they should charge you the tax rate for your delivery address.

How sales tax changed in recent years

Colorado's state sales tax rate has remained at 4.63 percent since 2010. Before that, it was 2.9 percent, but it was raised during the recession to help fund state services. Local rates change more frequently as cities and counties adjust their budgets and voter-approved measures.

Some Colorado cities have voted to increase their local sales tax to fund schools, transportation, or public safety. Others have kept rates stable. These local changes happen independently of the state rate, so your total tax can shift if you move to a different city or if your city votes to change its rate.

Sales tax on online and out-of-state purchases

If you buy something online from a Colorado business and have it delivered to a Colorado address, you owe Colorado sales tax. The seller should charge you the rate for your delivery location. If they do not, you are technically responsible for reporting and paying the tax yourself, though this is rarely enforced for individual purchases.

If you buy from an out-of-state seller with no Colorado location, Colorado law does not require them to collect tax from you. However, you may still owe tax to Colorado on that purchase. Most people do not report these purchases, and the state does not pursue individual consumers for unpaid tax on small orders.

Frequently Asked Questions

Is Colorado sales tax higher or lower than neighboring states?

Colorado's state rate of 4.63 percent is higher than Wyoming (4 percent) and lower than Utah (4.85 percent). When you add local taxes, Colorado's combined rates are competitive but vary widely by city. Denver at 10.25 percent is higher than most of Utah but lower than some California cities.

Do I pay sales tax on used items?

Yes, used goods are taxed the same as new ones in Colorado. If you buy a used car, furniture, or clothing from a retailer, you pay sales tax. Private sales between individuals are not taxed, but sales through a business or dealer are.

What about sales tax on cars and vehicles?

Vehicle purchases are subject to Colorado sales tax, calculated on the purchase price. You pay the combined state and local rate for the county where you register the vehicle, not where you buy it. This is collected when you register the car with the Department of Motor Vehicles.

Can I get a sales tax refund if I move out of Colorado?

No, Colorado does not offer refunds on sales tax paid before you leave the state. Sales tax is final at the time of purchase. If you are moving and have large purchases to make, you may want to time them for after you arrive in your new state if that state has a lower rate.