What is the sales tax in Colorado?
Combined rate, the threshold that makes you register, and the rules that decide what you charge.
The Colorado state sales tax rate is 2.9%. Local rates average 4.91%, for a combined average of 7.81%, and reach 11.2% in the highest jurisdictions. A remote seller has to register once sales into Colorado pass $100,000 in sales into the state over the previous or current calendar year. Charge the rate at the buyer’s address.
- State rate
- 2.9%
- Average local rate
- 4.91%
- Combined average
- 7.81%
- Highest in the state
- 11.2%
Do you have to register?
Economic nexus threshold
$100,000
Measured over the previous or current calendar year. Order count does not matter here, only the dollar figure. Physical presence — staff, an office, or stock sitting in a 3PL in the state — creates the obligation immediately, before any threshold applies.
What you charge, and on what
- Which address sets the rate Charge the rate at the buyer’s address.
- Is shipping taxed Depends how you state it. Separately stated delivery is exempt from state tax when the buyer could have avoided it. Home-rule cities set their own rule.
- Clothing Taxed at the same rate as everything else.
- Groceries Exempt
- Marketplace sales Amazon, Walmart, Etsy, and eBay collect and remit on the orders they process. Sales through your own store stay yours to collect on.
- Registering Register directly with the Colorado Department of Revenue. This state runs its own registration.
Worth knowing about Colorado
- Roughly 70 home-rule cities administer their own sales tax and are not bound by the state’s rules or its exemptions. The state’s Sales and Use Tax System lets you file most of them in one place.
- The lowest state rate in the country sits under some of the highest local rates.
Colorado sales tax questions
What is the sales tax rate in Colorado?
The state rate is 2.9%. Local jurisdictions add an average of 4.91% on top, which puts the typical combined rate at 7.81% and the highest at 11.2%. Because the rate follows the address, the figure you charge depends on where the order is going.
When does a remote seller have to register in Colorado?
Once sales into the state pass $100,000 in sales into the state over the previous or current calendar year. Order count does not matter here — the dollar figure is the only trigger. Physical presence, including inventory held at a 3PL in the state, creates the obligation immediately, before any threshold applies.
Is shipping taxable in Colorado?
Depends how you state it. Separately stated delivery is exempt from state tax when the buyer could have avoided it. Home-rule cities set their own rule.
Is clothing taxed in Colorado?
Clothing is taxed at the same rate as other goods. Colorado does not exempt apparel.
Where the authoritative number is
Rates and thresholds change, and the Colorado Department of Revenue sets them. Check there before you register or file.
Other states with a $100,000 threshold
Know before you cross the line
The threshold above is easy to read and hard to track, because it counts sales from your store, your marketplaces, and your wholesale accounts together. Endless keeps those on one source of truth, so what you have sold into Colorado this year is a number you already have rather than one you assemble after the fact.
This page is a reference, not tax advice. Confirm registration and filing decisions with the Colorado Department of Revenue or a tax professional.