Colorado sales tax rates and estimate (2026)
Colorado's state sales tax rate is 2.9%, and about 7.89% combined with average local taxes. Enter an amount for an estimate based on that average.
Pre-filled with Colorado's 2026 population-weighted combined average. This is not a ZIP, city, county or address lookup. Replace it only if you already know the applicable local rate. Estimate only, not tax advice.
Colorado sales tax rate
Colorado charges a statewide sales tax of 2.9%. Cities, counties and special districts can add their own local sales taxes on top, which brings the population-weighted average combined rate to about 7.89% in 2026. Because local rates differ from place to place, the exact rate at a given address may be higher or lower than the average.
How to calculate Colorado sales tax
Multiply the price by the rate: sales tax = price × rate ÷ 100, then add it to the price for the total. For a $100 purchase at the combined 7.89% rate, the tax is $7.89 and the total is $107.89. Use the calculator above for any amount, and swap in your local rate if you know it.
| State rate | 2.9% |
|---|---|
| Combined avg (state + local) | 7.89% |
Rates as of January 1, 2026 (source: Tax Foundation). Verify the current rate with the relevant Colorado state or local tax authority before invoicing or filing.
Last reviewed October 20, 2026 by the CedarBill Editorial Team. Thresholds and exemptions: Sales Tax Institute, AARP and each state tax authority. See how sources are selected and updated in our methodology.
Colorado sales tax at a glance
| Average combined rate rank | #16 highest of 50 states + DC |
|---|---|
| Average local add-on | 4.99% |
| Groceries | Exempt from state tax; local tax may apply |
| Clothing | Taxed |
| In-state sourcing | Destination-based (buyer's address) |
| Remote-seller threshold | $100,000 in sales |
| Streamlined Sales Tax member | No |
| Tax authority | Colorado Department of Revenue |
What's taxed in Colorado
Groceries (food for home consumption) are exempt from Colorado's state sales tax, but city or county taxes may still apply to food. Clothing is taxed like any other goods. Whether services are taxable depends on the state and the type of service. If you invoice for services, confirm the rule with the Colorado Department of Revenue before adding sales tax.
Selling into Colorado and which rate to charge
Since the 2018 Supreme Court decision in South Dakota v. Wayfair, a business with no physical presence in Colorado must register and collect its sales tax once sales into the state exceed $100,000. The measurement period (current or previous year, or a rolling 12 months) is set by the state, so check it before you cross the line. Colorado is not a Streamlined Sales Tax member, so out-of-state sellers register directly with the Colorado Department of Revenue.
Colorado uses destination-based sourcing: charge the rate at the buyer's delivery address. That's why the same order can carry different rates in different parts of the state — and why the average above is only a reference.
Good to know about Colorado
Colorado has a low 2.9% state rate but hundreds of local taxing jurisdictions. Home-rule cities such as Denver and Boulder administer their own sales tax separately from the state; the Sales and Use Tax System (SUTS) portal lets sellers file for many of them in one place.
Colorado vs. neighboring states
Among Colorado's neighbors, Wyoming has the lowest average combined rate (5.56%) and Oklahoma the highest (9.06%). Rates matter when you ship across state lines: the buyer's state decides the tax.
| State | State rate | Combined avg |
|---|---|---|
| Colorado | 2.9% | 7.89% |
| Kansas | 6.5% | 8.69% |
| Nebraska | 5.5% | 6.98% |
| New Mexico | 4.875% | 7.67% |
| Oklahoma | 4.5% | 9.06% |
| Utah | 6.1% | 7.42% |
| Wyoming | 4% | 5.56% |
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Create a free invoiceFrequently asked questions
What is the sales tax rate in Colorado?
Colorado's statewide sales tax rate is 2.9%. With average local taxes added, the combined rate is about 7.89% (as of 2026). Your exact rate depends on the city or county.
How do I calculate sales tax in Colorado?
Multiply the purchase price by the tax rate. For example, on a $100 purchase at 7.89%, the sales tax is $7.89 and the total is $107.89. The calculator above does it for any amount.
Why is my Colorado sales tax different from the rate shown?
Local city, county and special-district taxes vary by address, product and sometimes transaction type. The figure shown is a statewide average reference, not an exact local lookup.
Do I have to collect Colorado sales tax if my business is in another state?
Only once you have nexus. Without a physical presence, Colorado requires remote sellers to collect once sales into the state exceed $100,000. Below that threshold you generally don't collect Colorado sales tax.
Are groceries taxed in Colorado?
Groceries (food for home consumption) are exempt from Colorado's state sales tax, but city or county taxes may still apply to food.