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Colorado flagUpdated July 2026Combined rank #16

Colorado Sales Tax Rate 2026

2.9% statewide + 4.99% average local = 7.89% combined.

By Sammy S. · Founder · AuthorUpdated for 2026

2.9%
State rate
4.99%
Average local
7.89%
Combined
#16
National rank

Colorado sales tax snapshot

Colorado's general statewide rate is 2.9%. After the population-weighted local adjustment of 4.99%, its estimated combined average is 7.89%, ranking #16 nationally.

Compare Colorado with another state

Compare any two states

State, local, and combined rates with purchase and annual-spending differences.

Sales tax examples in Colorado

Estimates use the 7.89% statewide average for a general taxable purchase.

Price$25
Tax$1.97
Total$26.97
Price$50
Tax$3.95
Total$53.95
Price$100
Tax$7.89
Total$107.89
Price$500
Tax$39.45
Total$539.45
Price$1,000
Tax$78.90
Total$1,078.90

How the combined rate works

The combined average is 2.9% statewide plus 4.99% average local. It is useful for cross-state comparisons, but it is not an address-specific rate.

What can change the tax charged

City and county add-ons, special districts, sourcing rules, and exemptions for groceries, clothing, medicine, services, or digital goods can all change the final tax.

How Colorado sales tax compares nationally

At 7.89%, Colorado's population-weighted combined rate is 0.36% above the 7.53% US average. Its combined rank is #16, where #1 represents the highest average state and local rate.

The statewide portion is 2.9% and the weighted local adjustment is 4.99%. Local rates can reach 9.1% in the source table, so shoppers and businesses should not treat the statewide average as an address-level quote.

Rate comparisons also do not measure the tax base. Whether Colorado taxes groceries, clothing, medicine, services, software, or prepared food—and whether reduced rates apply—can matter as much as the headline percentage.

Estimated annual sales tax impact in Colorado

The table applies the 7.89% combined average to different amounts of taxable spending. It is not a household tax bill: actual spending, exemptions, and local rates vary.

$5,000 taxable spending

Colorado
$394.50
US avg.
$376.50
Difference
+$18.00

$10,000 taxable spending

Colorado
$789.00
US avg.
$753.00
Difference
+$36.00

$20,000 taxable spending

Colorado
$1578.00
US avg.
$1506.00
Difference
+$72.00

$40,000 taxable spending

Colorado
$3156.00
US avg.
$3012.00
Difference
+$144.00

Key takeaways — Colorado sales tax

  • Colorado's 2026 statewide general sales tax is 2.9%; the population-weighted combined average is 7.89% (national rank #16).
  • Average local add-on is 4.99% (max listed 9.1%) — your city or county can differ from the statewide average.
  • That combined average is 0.36% above the 7.53% US population-weighted average.
  • On a $100 general taxable purchase at the combined average, estimated tax is $7.89 (total $107.89). On $1,000 it is about $78.90.
  • Among bordering areas, combined averages range from 5.39% in Wyoming to 9.06% in Oklahoma.

Colorado vs neighboring states

Combined averages for states that share a border with Colorado. Colorado is 7.89% vs the 7.53% US average.

StateCombinedvs COCompare
Colorado7.89%—This page
Wyoming5.39%-2.5%vs CO
Nebraska6.98%-0.91%vs CO
Utah7.42%-0.47%vs CO
New Mexico7.68%-0.21%vs CO
Arizona8.54%+0.65%vs CO
Kansas8.71%+0.82%vs CO
Oklahoma9.06%+1.17%vs CO

Monthly taxable spending in Colorado

Estimated sales tax at the 7.89% combined average. Exemptions and local rates can change results.

$200 / month taxable

$15.78 / mo tax

~$189.36 / year

$500 / month taxable

$39.45 / mo tax

~$473.40 / year

$1,000 / month taxable

$78.90 / mo tax

~$946.80 / year

How to read this page

Colorado sales tax overview (2026)

Colorado charges a 2.9% statewide general sales tax plus local rates that average 4.99% on a population-weighted basis. Together that produces a 7.89% combined average — useful for comparing states, not for quoting every ZIP code.

Nationally, Colorado ranks #16 by combined average (where #1 is highest). Relative to the 7.53% US average, Colorado sits 0.36% above. On $20,000 of taxable spending, the estimated sales tax is about $1,578.00 in Colorado versus $1,506.00 at the US average.

Use this page for planning and comparison, then confirm address-level rates and product taxability with the Colorado revenue agency before invoicing or filing.

Local sales tax in Colorado

Local city, county, and district rates push the population-weighted average local add-on to 4.99%. The source table lists a maximum local rate of 9.1%, so checkout tax can land above or below the 7.89% combined average.

Destination (and sometimes origin) sourcing rules decide which local rate applies on delivery and in-store sales. Always verify the delivery address for online orders.

Businesses collecting Colorado tax should map nexus, local filing requirements, and exemption certificates — the statewide average is not a substitute for a tax engine.

Shopping and budget impact in Colorado

At the 7.89% combined average, every $100 of general taxable spending adds about $7.89 in tax. Scale that to monthly habits with the examples below — remember groceries, medicine, and services may be taxed differently.

Cross-border shopping can matter: Wyoming (5.39%) and Nebraska (6.98%) sit below Colorado's average, while Arizona (8.54%) and Kansas (8.71%) sit above. Local rates and exemptions still decide the real gap.

Large purchases (vehicles, appliances, furniture) amplify small rate differences. Run the amount through the sales tax calculator with Colorado selected, then confirm any trade-in credits or special vehicle taxes with DMV/revenue guidance.

Sales tax notes for sellers in Colorado

Sellers with nexus in Colorado generally collect the applicable state and local rate based on sourcing rules, then file on the state's schedule. Marketplace facilitators often collect on behalf of marketplace sellers — confirm who remits.

Keep exemption and resale certificates, map taxable vs nontaxable SKUs (including digital goods and shipping), and do not rely on the 7.89% average as an invoice rate.

For multi-state catalogs, pair this profile with compare pages against your top destination states and the live sales tax calculator.

Who this Colorado sales tax page helps

Useful if…

  • •Shoppers estimating tax on everyday purchases or big-ticket items in Colorado.
  • •Households comparing Colorado with neighboring states before a move or weekend shopping trip.
  • •Remote sellers checking whether Colorado's rate and local structure look high or low nationally.
  • •Students and researchers needing a 2026 combined-rate snapshot with rank and US-average context.

Use official tools if…

  • •You need an address-exact rate for an invoice, audit, or vehicle title — use an official lookup.
  • •Your item may be exempt, reduced-rate, or holiday-eligible (groceries, Rx, clothing, school supplies).
  • •You are modeling employer cost, lodging occupancy tax, or fuel excise — those sit outside general sales tax.
  • •Your contract uses a custom local district rate above the max shown in the midyear table.

Colorado sales tax checklist

Quick steps before you treat the combined average as a final invoice rate.

  1. 1Confirm whether your purchase is a general taxable retail sale in Colorado.
  2. 2Look up the delivery or store address rate (local add-ons average 4.99%).
  3. 3Estimate tax with the 7.89% combined average, then refine in the sales tax calculator.
  4. 4If shopping across the border, compare Colorado with Wyoming, Nebraska, Utah on the dedicated compare pages.
  5. 5Businesses: verify nexus, marketplace rules, and filing frequency with the Colorado revenue agency.
  6. 6Keep documentation for exemptions, resale certificates, and use-tax self-assessment when sellers do not collect.

Purchases that may follow different Colorado tax rules

The general rate is only the starting point. Check current Colorado guidance for these commonly searched categories before assuming the headline rate applies.

Groceries and prepared food

Unprepared groceries may be exempt or reduced, while restaurant meals and ready-to-eat food often remain taxable.

Medicine and medical items

Prescription drugs are commonly exempt, but over-the-counter medicine, equipment, and supplements can follow separate rules.

Clothing and school supplies

Some states exempt certain clothing or offer temporary tax holidays with item limits and local participation rules.

Vehicles and large purchases

Cars, boats, and other titled property may use special rates, registration taxes, trade-in credits, or the buyer's home address.

Digital goods and software

Downloads, streaming, software licenses, and SaaS are not treated consistently across states or business-use scenarios.

Shipping and services

Delivery charges may follow the taxability of the underlying item. Labor and professional services vary widely by category.

How to find the exact sales tax rate in Colorado

Use the combined average for rough planning. For an invoice, filing, vehicle purchase, or other high-value transaction, follow these steps:

  1. 1

    Confirm the address

    Use the purchase location or delivery destination required by the sourcing rule.

  2. 2

    Classify the product

    Determine whether the item, service, shipping charge, or digital product is taxable.

  3. 3

    Use an official lookup

    Check the Colorado revenue agency's address tool, rate table, or local jurisdiction guidance.

  4. 4

    Document the result

    Businesses should retain rate evidence and valid exemption or resale certificates.

Sales tax vs. use tax

Sales tax is generally collected by the seller. Use tax is the matching obligation that may apply when a taxable item is used in Colorado but the seller did not collect the required tax—for example, some out-of-state, private, or business purchases.

Information for sellers

Sellers should evaluate physical and economic nexus, marketplace rules, sourcing, product taxability, exemption certificates, filing frequency, and local returns. The 7.89% average is not a substitute for a transaction-level tax engine or official guidance.

Colorado sales tax FAQs

State and combined rates, local add-ons, ranking, purchase examples, groceries, and online orders.

Colorado has a 2.9% statewide general rate and a 7.89% population-weighted combined average in 2026.

The combined average is 7.89%: 2.9% statewide plus a 4.99% weighted local adjustment.

Yes. The population-weighted local adjustment is 4.99%, while the listed maximum local rate is 9.1%.

At the combined statewide average, the estimated tax is $7.89, making the total $107.89 for a general taxable purchase.

Colorado ranks #16 by population-weighted combined state and local rate, where #1 is the highest rate. Equal combined rates may share a Tax Foundation rank or receive consecutive ranks.

Grocery taxability cannot be determined from the general rate alone. Colorado may exempt groceries, apply a reduced rate, or treat prepared food differently. Check the state revenue agency's current product guidance.

Online sellers generally calculate tax using the applicable sourcing rules and delivery address. The exact Colorado rate may differ from the statewide average shown here.

No. It is a population-weighted statewide average for comparison and estimation. Use an official address lookup for invoicing, filing, or a large purchase.

Colorado's 7.89% combined average is 0.36% above the 7.53% US population-weighted average. Rank #16 (#1 = highest).

At the combined average, about $1,578.00. At the US average rate the same spending is about $1,506.00 — a difference of $72.00 (higher in Colorado).

Some states run temporary holidays (often school supplies or energy-efficient appliances) with item caps and local opt-in rules. Whether Colorado has an active holiday changes by year — check the state revenue agency before assuming a zero rate.

Colorado averages 7.89%. Nearby combined averages include Wyoming 5.39%, Nebraska 6.98%, Utah 7.42%, New Mexico 7.68%, Arizona 8.54%, Kansas 8.71%, Oklahoma 9.06%. Open a compare page for purchase examples and annual gaps.

Often yes for taxable goods used in Colorado when the seller did not collect the required tax. Rules and de minimis thresholds vary — review Colorado use-tax guidance or your income-tax return instructions.

These states have the closest combined average rates in the current table.

Sales tax calculatorAll states sales tax table

Estimates only; verify the exact jurisdiction rate and product taxability with the Colorado revenue agency before invoicing, filing, or making a large purchase.