Colorado's statewide sales tax is 2.9 percent, but your actual rate depends on where you buy
Colorado charges a state sales tax of 2.9 percent on most retail purchases. However, that is not what you pay at the register. Counties and cities add their own sales taxes on top of the state rate, so your total can range from 4 percent to over 8 percent depending on your location. The rate that applies is determined by where the sale happens, not where you live.
If you buy something in Denver, you pay Denver's combined rate. If you buy the same item in Boulder, you pay Boulder's rate instead. This matters most for large purchases — a $1,000 appliance costs $29 more in sales tax in some counties than others.
Key Takeaways
- Colorado's state sales tax is 2.9 percent, but counties and cities add local taxes that raise the total to between 4 and 8.23 percent.
- The rate that applies is based on the location where you make the purchase, not your home address or where you live.
- Denver's combined rate is 7.65 percent; Boulder's is 7.6 percent; Colorado Springs is 7.73 percent; and Fort Collins is 7.3 percent.
- Some counties tax groceries and prescription drugs at a lower rate or not at all, while others explore the full rate to all items.
- Online purchases are taxed based on the seller's location or the delivery address, depending on the retailer's policy and state law.
How county and city taxes stack on top of the state rate
Colorado allows counties to impose their own sales tax, and cities within those counties can add another layer. A typical breakdown looks like this: 2.9 percent state, plus 1 to 2 percent county, plus 0.5 to 2 percent city. The total is what you see on your receipt.
Denver County charges 1 percent county tax and the city of Denver adds another 3.75 percent, bringing the total to 7.65 percent. Boulder County charges 0.5 percent and the city of Boulder adds 3.1 percent, for a total of 6.5 percent. These rates have been stable for several years, but cities and counties can vote to change them, so it is worth checking your local government's website if you are planning a major purchase.
Some counties have no county sales tax at all — Gilpin County is one example — so the rate there is just the state 2.9 percent plus whatever the city charges. This is rare, but it means a few Colorado locations have notably lower rates than the state average.
Sales tax rates in Colorado's largest cities
The table below shows the combined sales tax rate for Colorado's seven largest cities and how that rate breaks down between state, county, and city portions. These rates explore to most purchases in these locations, though some items like groceries and prescription drugs may be taxed differently.
| City | Combined Rate | State + County + City Breakdown |
|---|---|---|
| Denver | 7.65% | 2.9% + 1% + 3.75% |
| Colorado Springs | 7.73% | 2.9% + 2.9% + 1.93% |
| Fort Collins | 7.3% | 2.9% + 1.4% + 3% |
| Boulder | 7.6% | 2.9% + 0.5% + 3.1% |
| Aurora | 7.65% | 2.9% + 1% + 3.75% |
| Littleton | 7.65% | 2.9% + 1% + 3.75% |
| Greeley | 7.4% | 2.9% + 1.5% + 3% |
Some cities have different rates for different product categories — groceries, for instance, may be taxed at a lower rate or not taxed at all. Check with your city or county assessor's office if you are buying something specific and want to know the exact tax.
What items are taxed and what items are not
Colorado taxes most retail goods at the full combined rate. Clothing, electronics, furniture, and household items are all taxable. However, groceries and prescription drugs receive special treatment in many counties.
Groceries — food you buy at a supermarket to cook at home — are generally taxed at a lower rate or not taxed at all in Colorado. Prepared food, restaurant meals, and food sold at convenience stores are taxed at the full rate. The distinction matters: a sandwich from a deli counter is taxed; a loaf of bread from the shelf is not. Prescription medications are not taxed in Colorado. Over-the-counter medicines and vitamins are taxed at the full rate. If you are unsure whether a specific item qualifies, the retailer's register will show the tax applied, or you can ask the cashier before you buy.
Online purchases and out-of-state orders
If you order something online from a Colorado retailer, you pay the sales tax rate for the address where it is being delivered. If you order from an out-of-state retailer and have it shipped to Colorado, the tax depends on whether that retailer has a physical presence in Colorado. Large retailers like Amazon, Walmart, and Target collect Colorado sales tax on all orders shipped to the state. Smaller retailers may not, though Colorado law requires you to report and pay tax on those purchases yourself — in practice, very few people do.
If you pick up an online order in person at a store location, you pay the tax rate for that store's location, not your home address. This can matter if you live in one city and pick up at a store in another.
How to find the exact rate for your location
The easiest way to find your local sales tax rate is to visit the Colorado Department of Revenue website and use their sales tax rate lookup tool. You enter your address or city name, and it shows you the combined state, county, and city rate.
You can also contact your county assessor's office or city clerk directly. They can tell you the current rate and whether any local ballot measures are pending that might change it. If you are a business owner or handle sales tax for a company, the Department of Revenue website also has resources for filing and payment important date.
Frequently Asked Questions
Does Colorado tax groceries?
Most groceries — food you buy at a supermarket to cook at home — are not taxed in Colorado. Prepared foods, restaurant meals, and items from convenience store hot bars are taxed at the full rate. The distinction is whether the food is ready to eat or requires preparation.
What is the highest sales tax rate in Colorado?
The highest combined rate is 8.23 percent, found in some areas of Uncompahgre Valley in Montrose and Ouray counties. Most populated areas range from 7 to 7.73 percent. The lowest rates are in counties with no county tax, which can be as low as 4 to 5 percent.
Do I pay sales tax on online orders from Colorado companies?
Yes, if the company ships to your Colorado address, you pay the sales tax rate for your delivery location. Large online retailers collect this automatically. Smaller retailers may not, but Colorado law requires you to report the purchase and pay tax yourself, though enforcement is minimal.
Is sales tax the same everywhere in Colorado?
No. The state rate is the same everywhere at 2.9 percent, but counties and cities add different amounts. Your total rate depends on where you make the purchase. Two cities in the same county can have different rates if one city adds a local tax and the other does not.