The Ultimate Colorado Sales Tax Guide

If you sell products or services or lease tangible personal property in Colorado (or to customers in Colorado), you need to know the ins and outs of Colorado sales tax.

In this Colorado sales tax guide, we’ll explain how to collect sales tax across the state, whether you need to collect sales tax, and what factors create sales tax nexus.

We'll also introduce a reliable tool that simplifies the process and guarantees smooth compliance at every stage.

Colorado Sales Tax Rate Range 2025

Colorado’s state sales tax rate is 2.9%. Counties, cities, and districts can also levy local sales taxes on taxable goods and services.

How to Calculate Sales Tax in Colorado

To calculate sales tax accurately in Colorado, you’ll have to know the following rates:

• State sales tax
• County sales tax
• City sales tax
• Any applicable district taxes

For example, there are four sales taxes in Naturita City, Montrose County:

• Colorado sales tax rate of 2.9%
• Montrose County sales tax of 1%
• Naturita city sales tax rate of 4%
• District combined sales tax rate of 0.75%

This brings the total sales tax rate of Naturita to 8.65%.

Sales Tax Rates in Colorado by County

County sales tax rates in Colorado range from 0.25% in Arapahoe County to 6.5% in San Juan County. The taxability of products such as food, fuel for residential use, and diapers varies from county to county.

Collecting Colorado Sales Tax from Customers

You may have questions about Colorado sales tax collection and how it works. The sections below explain what you need to know. But if you have further questions, we always recommend speaking with a sales tax expert. 

Do I Have to Collect Colorado Sales Tax from Customers?

You’re required to collect sales tax from Colorado customers if you are a retailer located in Colorado or if you have sales tax nexus in Colorado.

What Creates Sales Tax Nexus in Colorado?

In Colorado, any retailer who makes a taxable sale and has nexus must collect sales tax. Some conditions that create nexus in Colorado include:

• Economic nexus: Businesses must collect Colorado sales tax if their retail sales into the state during the current calendar year exceed $100,000. 
• Physical nexus: Businesses with a physical location in Colorado must follow all sales tax licensing and collection rules if the retailer maintains any place of business in the state directly, indirectly, or by a subsidiary. A place of business may include an office, distribution center, salesroom, warehouse, storage space, or even a home office of a Colorado-based employee. 
• Employees: A retailer will have nexus through an employee who is a salesperson or a representative of the business.

Learn more about sales tax nexus and when you’re required to collect sales tax.

Do I Have to Collect Sales Tax from Colorado Customers if I Sell on Amazon, Walmart, eBay, or Etsy?

No. 

Colorado has a marketplace facilitator law. This means marketplaces like Etsy or Amazon should collect sales tax on behalf of third-party sellers on their platforms. A marketplace facilitator who doesn’t meet the $100,000 threshold doesn’t have to register, collect, and remit Colorado tax.

If you have sales tax nexus in Colorado, you need to collect sales tax on any non-marketplace sales in the state.

Taxable Products in Colorado

Although Colorado imposes sales tax on most tangible personal property and specific services, it doesn’t tax groceries.

Here’s a detailed breakdown of the items taxed in Colorado.

Are Groceries Taxable in Colorado? 

No, the state of Colorado does not tax grocery items. However, local governments can tax groceries.

Is Clothing Taxable in Colorado?

Yes, clothing is taxable in Colorado.

Are Digital Products Taxable in Colorado?

Digital products delivered or stored electronically, such as videos, music, or e-books, are taxable in Colorado. 

Is Software-as-a-Service (SaaS) Taxable in Colorado?

Software-as-a-Service is not subject to the Colorado state sales tax. However, home rule jurisdictions may impose a local sales tax. 

Are Services Taxable in Colorado?

In Colorado, most services are not subject to sales tax. However, sales tax is specifically applied to intrastate telephone and telegraph services, as well as gas and electric services used for commercial purposes. 

Additionally, services that are normally exempt may be taxed if provided as part of a sale involving tangible personal property.

Tax-Exempt Items

Some items that are exempt from sales tax in Colorado are:

• Food purchased for human consumption, except for hot food ready to be eaten or heated in the store. 
• Gas, electricity, coal, wood, and fuel oil sold for residential use. 
• All prescription drugs dispensed by a practitioner with a valid prescription. 
• Certain medical supplies and materials.
• Farm equipment, such as farm tractors, irrigation equipment, dairy equipment, and more.

How to Register for a Colorado Sales Tax Permit

You can register for a sales tax permit online via the Colorado Department of Revenue Website or offline by submitting form CR 0100.

Learn how to register for a seller's permit in every US state.

Do I Need a Colorado Sales Tax License if I’m Only a Wholesaler? 

A business that operates solely as a wholesaler can apply to the Department of Revenue for a wholesale license by completing form CR 0100. 

Do I Need a Colorado Seller's Permit if I Only Sell Temporarily in the State?

Yes, you need to obtain a single special event license or a multiple special event license, depending on how many events you plan on attending. Each license is valid for two years. .

How to Collect Sales Tax in Colorado

Colorado is a destination-based sales tax sourcing state. 

This means that when you make a taxable retail sale to a customer in Colorado, you must apply the sales tax rate based on the buyer’s shipping address.

Should You Collect Sales Tax on Shipping Charges in Colorado?

Shipping charges are not taxed in Colorado if they are separable from the purchase and stated separately in the customer’s invoice. 

Find out more about sales tax on shipping in every state in the United States.

How to File and Pay Sales Tax in Colorado

There are multiple ways to file and pay sales tax in Colorado:

• Automated: Let Zamp handle your Colorado sales tax filing and remittance so you won’t have to deal with sales tax returns ever again.
• Online: If you have more than one business location, you must file a separate return in the Revenue Online Website for each location.
• Approved Sales Tax Software: Vendors with multiple locations can use Approved Sales Tax Software, which will automatically generate electronic XML files that can be uploaded to Revenue Online.
• Sales Tax Spreadsheet E-Filing: Multiple location filers who don’t use the Approved Sales Tax Software can use Sales Tax Spreadsheet E-Filing.
• Offline: You can select the applicable forms and mail them to:
  Colorado Department of Revenue Denver, CO 80261-0013

Explore how you can file and pay sales tax in other US states.

FAQs on Paying and Filing Colorado Sales Tax

What Is Use Tax?

When a purchaser buys tangible personal property without paying sales tax at the time of purchase, they need to pay consumer use tax directly to the Department of Revenue. This applies to the storage, use, or consumption of such tangible personal property in the state.

If an item is exempt from sales tax, it is usually exempt from use tax as well.

I Didn’t Collect Any Colorado Sales Tax During This Period. Do I Still Need to File a Return?

Yes. 

Even if you didn’t collect any sales tax during the taxable period, it's still important to file a "zero" return with the state to stay compliant.

What Is the Penalty for Filing and/or Paying Colorado Sales Tax Late?

If a taxpayer fails to file a return or pay the tax on time, they’ll have to pay a penalty of $15 or 10% of the fee due (whichever is greater) plus 0.5% for each month the fee remains unpaid. 

However, the penalty won’t exceed 18% of the tax due.

Can I Amend a Colorado Sales Tax Return? 

Yes. You can submit an amended return if you find an error or need to correct any information on a previously filed return. 

How Often Do I Need to File and Pay Sales Tax in Colorado?

How often you file depends on how much sales tax you collect each month. 

If you collect $15 or less per month, you can file your sales tax return once a year. If you collect less than $300 per month, you can file quarterly. Monthly filing is required for businesses that collect $300 or more in sales tax each month.

Colorado Sales Tax Due Dates

Colorado due dates for monthly filers:

Taxable Period	Filing Due Date
January 2025	February 20, 2025
February 2025	March 20, 2025
March 2025	April 21, 2025
April 2025	May 20, 2025
May 2025	June 20, 2025
June 2025	July 21, 2025
July 2025	August 20, 2025
August 2025	September 22, 2025
September 2025	October 20, 2025
October 2025	November 20, 2025
November 2025	December 22, 2025
December 2025	January 20, 2026

Colorado quarterly sales tax filing due dates:

Taxable Period	Filing Dates
Q1 (Jan-March) 2025	April 21, 2025
Q2 (Apr-June) 2025	July 21, 2025
Q3 (July-Sept) 2025	October 20, 2025
Q4 (Oct-Dec) 2025	January 20, 2026

Taxable Period	Filing Date
2025	January 20, 2026

Let The Experts Handle Your Colorado Sales Tax Filing

Managing sales tax shouldn’t take the fun out of growing your business.

That’s why you need Zamp—so you can stay focused on what matters while we handle the rest.

Zamp offers easy onboarding, accurate tax calculations, and simple one-click registration and filing – whether you run a big or small business.

Ready for streamlined sales tax management? Get started with Zamp today!