Colorado Sales Tax Rate (2026)

State Base Rate

2.9%

Local jurisdictions may add additional sales tax.

Last updated:

Source: Colorado Department of Revenue

How Sales Tax Works in Colorado

Colorado imposes a statewide base sales tax rate of 2.9%. Colorado is a destination-based sales tax state, meaning the tax rate is determined by the buyer's delivery address.

County taxes: Colorado counties can levy additional sales tax on top of the state rate, and rates vary by county.

City taxes: Cities in Colorado may impose their own sales tax, adding further variability to combined rates.

Special district taxes: Special taxing districts (transit authorities, improvement districts, etc.) in Colorado can add additional taxes that apply within their boundaries.

Rates in Colorado are typically updated quarterly. Businesses should monitor rate changes regularly to maintain compliance.

Why Rates Vary by County in Colorado

The combined sales tax rate a customer pays in Colorado depends on the specific jurisdiction of the transaction. Local governments use sales tax revenue to fund essential services such as infrastructure, public safety, and education.

This means that two addresses within the same city may have different tax rates if they fall in different special taxing districts. ZIP codes are particularly unreliable for tax determination because a single ZIP code can span multiple counties or tax jurisdictions.

For businesses operating in Colorado, manually tracking these rate changes across every jurisdiction is impractical. An automated API solution ensures you always apply the correct rate at the point of sale, reducing compliance risk and audit exposure.

Example API Response

Query real-time sales tax rates programmatically. Here is an example response for Denver County:

api-response
GETRequest
curl -H "Authorization: Bearer YOUR_API_KEY" \
  "https://salestaxapi.io/api/rates?state=CO&zip=80202"
200Response
{
  "state": "CO",
  "zip": "80202",
  "county": "Denver County",
  "total_rate": 0.0881
}

Get real-time Colorado sales tax rates via API

Access accurate, jurisdiction-level tax rates for every address in Colorado. Updated daily from Colorado Department of Revenue.

No credit card required · 14-day free trial

Colorado Sales Tax FAQ

What is the sales tax rate in Colorado?
Colorado has one of the lowest state sales tax rates at 2.9%. However, local jurisdictions add significant additional taxes, often bringing combined rates above 8%.
Does Colorado have local sales tax?
Yes. Colorado has one of the most complex local tax systems in the US, with home-rule cities that self-administer their own sales tax.
Is Colorado an origin or destination-based state?
Colorado is a destination-based sales tax state, though home-rule cities have their own rules.
How often does Colorado update sales tax rates?
Colorado rates can change quarterly. The state publishes updated rate tables and special district information regularly.

Related Resources