Colorado's statewide sales tax is 4.63 percent
Colorado charges a 4.63 percent state sales tax on most retail purchases. This rate applies statewide and has been in place since 2018. However, the total tax you pay at checkout is usually higher because counties and cities add their own local sales taxes on top of the state rate.
The final tax rate depends on where you make the purchase. A single item might be taxed at 4.63 percent in one county and 8 percent or higher in another. This means the same product costs different amounts depending on the city or county where you buy it.
Key Takeaways
- Colorado's state sales tax rate is 4.63 percent, but your total tax includes local county and city taxes added on top.
- Combined sales tax rates in Colorado range from 4.63 percent to over 10 percent depending on location.
- Denver charges 7.65 percent total sales tax, while Boulder charges 8.81 percent and Colorado Springs charges 7.73 percent.
- Food, prescription medications, and some medical equipment are exempt from Colorado sales tax.
- Local tax rates change when counties or cities vote to adjust their portion, so the rate in your area may differ from what you saw last year.
How local taxes stack on top of the state rate
Colorado allows counties and cities to set their own sales tax rates. These local rates are added directly to the 4.63 percent state rate. A county might add 2 percent, and a city within that county might add another 1 percent, bringing the total to 7.63 percent.
The local portion funds schools, roads, public safety, and other services in that specific area. Because each county and city sets its own rate independently, the total tax you pay varies significantly across the state. Some rural areas stay close to the state minimum, while urban areas often have combined rates above 8 percent.
You can find the exact rate for your location by entering your address on the Colorado Department of Revenue website or by asking a cashier. The receipt you receive will show the total tax charged.
Sales tax rates in major Colorado cities
| City | Combined Sales Tax Rate |
|---|---|
| Denver | 7.65% |
| Boulder | 8.81% |
| Colorado Springs | 7.73% |
| Fort Collins | 7.63% |
| Aurora | 7.65% |
| Pueblo | 7.63% |
| Littleton | 7.65% |
| Greeley | 7.63% |
These rates are current as of 2024, but local governments can vote to change their portion at any time. If you live in or frequently shop in one of these cities, check the current rate before budgeting for large purchases, as rates can shift between election cycles.
The variation between cities shows how much local decisions affect what you actually pay. Denver and Aurora have identical rates because they are in the same county and city tax structure, while Boulder's rate is noticeably higher due to voter-approved local measures.
What items are exempt from Colorado sales tax
Not everything you buy in Colorado is subject to sales tax. Groceries and food for home consumption are exempt, which means you do not pay sales tax on items like milk, bread, vegetables, and meat purchased at a grocery store. Restaurant meals and prepared foods are taxed, but raw ingredients are not.
Prescription medications are also exempt from Colorado sales tax. Over-the-counter medications like aspirin or cold medicine are taxed, but prescriptions filled by a pharmacist are not. Some medical equipment and devices used to treat specific conditions are exempt as well, though the rules are specific to the type of equipment.
Clothing and shoes are taxed in Colorado, unlike some other states. Children's clothing is not treated differently from adult clothing for tax purposes.
When local sales tax rates change
Colorado counties and cities hold elections to adjust their local sales tax rates. These votes typically happen during regular election cycles, and changes take effect on the first day of the following month or quarter. When a new rate goes into effect, retailers update their systems, but the change may not be immediately visible to shoppers.
Some communities have temporary sales tax increases that are set to expire on a specific date. For example, a city might vote for a 0.5 percent increase that lasts for five years to fund a specific project. When the sunset date arrives, the rate drops back down unless voters approve an extension.
If you notice your receipt shows a different tax rate than before, a local rate change is usually the reason. You can contact your city or county assessor's office to learn when the most recent change took effect and whether any future changes are planned.
How to find the exact sales tax rate for your location
The Colorado Department of Revenue maintains a searchable database of all sales tax rates by address. You can enter your street address, city, or ZIP code to see the combined state and local rate that applies there. This tool is updated regularly when local governments change their rates.
Alternatively, you can call your city or county clerk's office and ask for the current combined sales tax rate. They can tell you the state rate, the county rate, and any city rate that applies to your specific address. Some areas have different rates for different neighborhoods, so providing your exact address gives you the most accurate answer.
If you are shopping online and the retailer is based in Colorado, the sales tax charged depends on the delivery address, not where the retailer is located. Out-of-state retailers may or may not charge Colorado sales tax depending on their policies and whether they have a physical presence in the state.
Frequently Asked Questions
Do I pay sales tax on online purchases from Colorado retailers?
Colorado retailers must charge sales tax on online orders delivered to Colorado addresses. The rate applied is based on the delivery address, not the retailer's location. If you order from an out-of-state retailer, whether sales tax is charged depends on that retailer's policies and their business presence in Colorado.
Is sales tax charged on services in Colorado?
Most services are not subject to Colorado sales tax. Haircuts, car repairs, plumbing, and consulting services are generally not taxed. However, some specific services like hotel stays and certain entertainment activities may have their own taxes or fees separate from sales tax.
Can I get a refund of sales tax I paid?
Colorado does not offer sales tax refunds to individual shoppers. Businesses that purchase items for resale can obtain a resale certificate to avoid paying sales tax. Visitors from other states cannot reclaim sales tax paid in Colorado.
Why is the sales tax rate different in nearby towns?
Each city and county sets its own local sales tax rate independently. Two towns next to each other may have voted for different local rates, resulting in different total taxes. This is why the same item costs different amounts depending on which side of a city line you shop on.
Does Colorado charge sales tax on used items?
Used items sold by individuals are generally not subject to sales tax. Used items sold by businesses or through resale shops are taxed at the same rate as new items. The tax applies to the sale price, regardless of the item's condition.