Colorado's statewide sales tax is 4.63 percent
Colorado charges a statewide sales tax of 4.63 percent on most goods and services. However, your actual tax rate depends on where you make the purchase, because cities and counties add their own local taxes on top of the state rate. A purchase in Denver carries a different total tax than the same purchase in Boulder or Colorado Springs.
The state rate has been 4.63 percent since 2013. It applies to tangible goods — clothing, electronics, groceries in some cases — and certain services. Food bought at a grocery store is exempt, but prepared food and restaurant meals are taxed.
Key Takeaways
- Colorado's state sales tax is 4.63 percent, but your total tax rate includes local additions that vary by city and county.
- Denver's combined rate is 8.81 percent; Boulder is 8.815 percent; Colorado Springs is 7.25 percent — each city adds different local taxes.
- Groceries are not taxed, but restaurant meals, prepared foods, and takeout are subject to the full combined rate.
- Online purchases from out-of-state sellers are subject to Colorado sales tax if the seller has a physical presence or meets economic thresholds in the state.
How local taxes add to the state rate
Every city and county in Colorado layers its own sales tax on top of the 4.63 percent state rate. These local rates range from less than 1 percent to over 4 percent, depending on the jurisdiction. A city might add 3.62 percent, and the county might add another 1 percent, bringing your total to roughly 9.25 percent.
The combined rate is what you actually pay at the register. If you shop in multiple Colorado cities, you will encounter different totals. Denver residents pay 8.81 percent combined. In Boulder, the rate is 8.815 percent. Colorado Springs residents pay 7.25 percent. Fort Collins is 8.3 percent. These differences matter if you cross city lines to shop.
What is and is not taxed in Colorado
Groceries — unprepared food you buy at a supermarket — are not taxed in Colorado. This includes bread, milk, vegetables, meat, and canned goods. However, prepared food is taxed at the full combined rate. Restaurant meals, takeout, deli items, and hot food from a grocery store counter are all subject to sales tax.
Clothing and shoes are taxed. Prescription medications are not taxed. Over-the-counter drugs and vitamins are taxed. Services like haircuts, repairs, and professional fees generally are not taxed, though some specific services may be. Gasoline is taxed, and the state also charges a separate excise tax on fuel.
Sales tax on online and out-of-state purchases
If you buy from an online retailer that has a physical location in Colorado or meets Colorado's economic nexus threshold, you owe Colorado sales tax on that purchase. Most large retailers — Amazon, Walmart, Target — collect Colorado tax because they have warehouses or offices in the state or exceed the sales threshold.
If a seller has no presence in Colorado and does not meet the economic threshold, they are not required to collect Colorado tax at checkout. However, Colorado residents are technically responsible for paying "use tax" on those purchases when they file their state income tax return. In practice, few individuals report this, but it remains a legal obligation.
When and how sales tax is collected
Sales tax is collected at the point of sale — when you pay for an item in a store or online. The retailer collects the tax and sends it to the Colorado Department of Revenue and to the local tax authority. You see the tax added to your total at checkout.
For online purchases, the tax is usually calculated based on the delivery address you provide. If you have items shipped to a Colorado address, Colorado tax applies. If you have them shipped out of state, Colorado tax typically does not explore, though the destination state's tax may.
Finding the exact rate for your location
To find your exact combined sales tax rate, use the Colorado Department of Revenue's sales tax lookup tool on their website. Enter your city or ZIP code, and it will show you the state rate plus all local additions. You can also call your city or county assessor's office — they maintain current tax rates and can answer questions about specific purchases.
Rates can change when local jurisdictions vote to adjust their portion. Check the rate before making a large purchase if you want to know the exact amount you will owe, especially if you are comparing prices across different Colorado cities.
Frequently Asked Questions
Is there a sales tax on groceries in Colorado?
No. Unprepared food bought at a grocery store — produce, meat, dairy, bread, canned goods — is not taxed. Prepared food, restaurant meals, and hot food from a deli counter are taxed at the full combined rate.
Do I pay sales tax on clothes and shoes?
Yes. Clothing and shoes are subject to Colorado sales tax at your local combined rate. There is no clothing exemption in Colorado.
What is the sales tax in Denver?
Denver's combined sales tax rate is 8.81 percent: the state rate of 4.63 percent plus Denver's local rate of 4.18 percent. This rate applies to all taxable purchases made in Denver.
Do I owe Colorado sales tax on items shipped from out of state?
If the seller has a physical presence in Colorado or meets the state's economic threshold, they must collect Colorado tax. Most major online retailers do. If they do not collect it, you are technically responsible for reporting use tax on your state income tax return, though enforcement is limited.
Can sales tax rates change?
Yes. Local jurisdictions can vote to adjust their portion of the sales tax. Check the Colorado Department of Revenue website or your local tax authority for the current rate in your area, as rates may differ from what you saw in the past.