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    Sales Tax by State – Colorado

    April 22, 2021

April 22, 2021

Sales Tax by State – Colorado




Colorado Sales Tax Fact Sheet

Last updated on: April 1, 2021

Colorado Sales Tax Rate Lookup by Address:

Use USgeocoder Sales Tax FREE Online Lookup Tool to search state-wide, county, city and special district sales tax rates and tax reporting details for any physical address and PO Box in State of Colorado.

Colorado Sales tax components:
Statewide tax
Local district tax: County Tax + Municipality Tax + Special District Tax

Colorado Statewide Sales Tax Rate:
2.90%

Highest Total Local District Sales Tax Rate in Colorado:
8.30%

Highest Total Sales Tax Rate with Local District Sales Tax in Colorado:
11.20%

Incorporated city with the Highest Total Sales Tax Rate in Colorado:
Winter Park in Grand County (11.20%)

Number of Counties in  Colorado:
64

Number of Municipalities (Incorporated cities) in Colorado:
271

Special District Sales Tax in Colorado:
Regional Transportation District (RTD)
Scientific and Cultural Facilities District (CD)
Local Improvement District Tax (LID)
Mass Transportation System Tax (MTS)
Regional Transportation Authority (RTA)
Multi-Jurisdictional Housing Authority (MHA)
Public Safety Improvements (PSI)
Metropolitan District Tax (MDT)
Health Services District (HSD)

Can I Use Zip Codes to Determine Correct Sales Tax Rates in Colorado?
Not recommended

Zip codes cross city boundaries. Different cities might have different local district rates. In addition, city taxes only apply to areas within the respective incorporated city. If an address is in an un-incorporated area, city taxes do not apply. You should look for an address-based solution such as USgeocoder that can identify if the address is within an incorporated city to determine its sales tax rates in Colorado.

Learn more about how postal zip codes, mailing cities and incorporated cities work. 

Can I Use County and City to Determine Correct Sales Tax Rates in Colorado?
Not recommended

Many special districts are in unincorporated areas or in portions of respective counties or incorporated cities. County or city boundary lines do not accurately define such special district areas.  To find out the correct sales tax rate for a particular address in Colorado, try USgeocoder online tool to lookup its rates and taxing jurisdiction details.

Are Sales Tax Rates and Use Tax Rates the Same in Colorado?
No

Does Colorado Have Tax Codes for Tax Return Reporting Purpose?
Yes

Sales and Use Tax Rate Update Schedule in Colorado:
Update Frequency: Semi-Annualy
Last update: For Jan 2021 – June 2021

Does Colorado Have an Origin-Based or Destination-Based Sales Tax Collection?
Destination

Origin-based: sales tax is charged based on where the seller is located.
Destination-based: sales tax is charged based on where the buy is located

Is Colorado a Full Member of Streamlined State?
No

A streamlined Full Member State is a state that has been found to be in compliance with the Streamlined Sales and Use Tax Agreement (SSUTA) and its laws, rules, regulations, and policies and bring them into compliance are in effect. See details on Streamlined Sales Tax Governing Board’s website.

Does Colorado Have Sales Tax Holidays?
No

Wayfair Sales Tax Implementation in Colorado:
Sales Thresholds: $100,000

Wayfair sales tax implementation applies to out-of-state sales, remote sales, Internet sales and online sales. See details on https://tax.colorado.gov/out-of-state-businesses

Does Colorado Charge Sales Tax on Digital Goods?
Yes

Does Colorado Charge Sales Tax on Services?
In general, the tax does not apply to sales of services, except for those services specifically taxed by law.
See details on: Are labor charges subject to sales tax in Colorado?

Does Colorado Charge Sales Tax on Shipping?
Delivery and freight charges are generally not subject to sales tax, so long as the charges are both separable from the purchase and separately stated on the customer invoice.
See details on Are delivery and freight charges subject to sales tax?.

Colorado State Sales and Use Tax Authority:
Colorado Department of Revenue
Website: Colorado Sales & Use Tax

Other Resources:

  1. Colorado Sales Tax Guide: https://www.colorado.gov/pacific/sites/default/files/09.2020_Colorado%20Sales%20Tax%20Guide.pdf
  2. Location/Jurisdiction Codes for Sales Tax Filing: https://tax.colorado.gov/sites/tax/files/DR0800_2020_V2.pdf
  3. DR1002 Publication: Colorado Sales/Use Tax Rates  https://www.salestaxcolorado.com/wp-content/uploads/2018/05/dr1002.pdf

Looking for an Online Solution that provides real-time sales tax rates for your application? 

Try USgeocoder API. It provides all the information you get from USgeocoder Live Demo.

USgeocoder live demo is free to use. You can use it to lookup sales tax rate information one address at a time. However if you have a large number of addresses and would like to save time, USgeocoder can do it for you through batch processing service.


SALES TAX BY STATE

STATES WITH STATE AND LOCAL SALES TAX:
CaliforniaNew York, Washington State, George, Colorado, Alabama

STATES WITH NO SALES TAX:
Delaware, Montana, New Hampshire, Oregon

STATES WITH ONLY STATE-WIDE SALES TAX AND NO LOCAL SALES TAX:
Connecticut (6.35%), District of Columbia (6.00%), Indiana (7.00%), Kentucky (6.00%), Maine (5.5%), Maryland (6.00%), Massachusetts (6.25%), Michigan (6.00%), New Jersey (6.625%), Rhode Island (7.00%)


DISCLAIMERS:

SALES AND USE TAX INFORMATION ON THIS BLOG REFERS TO THE GENERAL SALES OF TANGIBLE PERSONAL PROPERTY. IN MANY STATES, THERE ARE DIFFERENT RATES FOR RENTAL, LEASING, AND TANGIBLE ITEMS SUCH AS VEHICLE, EQUIPMENT, FOOD, OR CLOTHING. SOME STATES HAVE DIFFERENT SALES TAX RATES THAN USE TAX RATES. EACH STATE HAS ITS OWN RULES ON EXEMPTIONS. PLEASE REFER TO THE SALES AND USE TAX LAW OF INDIVIDUAL STATES FOR DETAILS.

USGEOCODER LLC IS NOT ASSOCIATED WITH ANY GOVERNMENT AGENCIES IN ANY MANNER. ALL INFORMATION PROVIDED ON THIS WEBSITE IS PREPARED FOR GENERAL INFORMATIONAL PURPOSES ONLY. YOU SHOULD CONSULT YOUR OWN TAX, LEGAL AND ACCOUNTING ADVISORS TO ADDRESS YOUR SPECIFIC QUESTIONS AND BEFORE ENGAGING IN ANY TRANSACTION RELATED TO SALES AND USE TAX.


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