The Aurora CO sales tax rate creates headaches most sellers don’t anticipate. Aurora sprawls across three counties, creating rate variations that catch even experienced Colorado sellers off guard.
Opening a location in Aurora, selling to Aurora customers remotely, or expanding throughout Colorado? Understanding which rate applies where and when collection starts keeps you compliant instead of facing audits.
Hands Off Sales Tax (HOST) has managed Colorado sales tax for businesses across all industries for over 25 years. We handle Aurora’s multi-jurisdictional maze, track changing rates, and ensure correct collection everywhere you need it.
What Is the Aurora CO Sales Tax Rate?
The Aurora sales tax rate ranges from 7.00% to 8.75% depending on location within city limits. This combined rate includes state, county, city, and special district taxes that shift by address.
Aurora spans three Colorado counties: Arapahoe, Adams, and Douglas, creating multiple tax jurisdictions within a single city. The exact rate depends on which county the business location or customer delivery address falls within.
Aurora Sales Tax Breakdown
State Sales Tax: 2.9% (applies statewide)
Aurora City Tax: 3.75% (applies throughout Aurora)
County Tax: Varies by location
Special District Taxes: Additional 0.10% to 1.10%
RTD Tax: 1.00% in service areas, 0% elsewhere
Common Aurora Rates
Aurora-Arapahoe (RTD): 8.00% State: 2.9% + Arapahoe: 0.25% + City: 3.75% + RTD: 1.00% + Cultural: 0.10%
Aurora-Arapahoe (Non-RTD): 7.00% State: 2.9% + Arapahoe: 0.25% + City: 3.75% + Cultural: 0.10%
Aurora-Adams: 8.50% State: 2.9% + Adams: 0.75% + City: 3.75% + Special: 1.10%
Most of Aurora’s 386,261 residents live in Arapahoe County, making 8.00% the most common rate.
When Do Businesses Collect Aurora Sales Tax?
Businesses collect Aurora sales tax once they establish nexus. A sufficient connection to Colorado requires collection.
Physical Nexus
Physical presence creates immediate obligations regardless of sales volume:
- Retail location, office, or warehouse in Aurora
- Inventory stored in Aurora facilities (including third-party warehouses)
- Employees working from Aurora (including remote employees)
- Sales representatives operating from Aurora
Physical nexus triggers collection from your first sale. No minimum threshold applies.
Economic Nexus
Remote sellers without physical presence must collect once they exceed $100,000 in gross sales to Colorado customers during the current or previous calendar year.
Critical details:
Gross sales count, not just taxable sales. Sold $80,000 in taxable products and $30,000 in exempt items? You’ve crossed the threshold.
No transaction count. Colorado doesn’t use a 200-transaction threshold, only the $100,000 benchmark.
Calendar year measurement. Exceed $100,000 in 2024, and you collect starting January 1, 2025.
90-day grace for mid-year. Cross $100,000 mid-year, and you register by the first day of the first month starting at least 90 days after exceeding the threshold.
Registration Requirements
Colorado’s home rule structure means Aurora businesses need multiple separate registrations:
- Colorado Department of Revenue – State tax
- Aurora – Home rule city registration
HOST handles all Colorado registrations (state and local) ensuring proper licensing everywhere you have obligations.
What’s Taxable in Aurora?
Generally Taxable:
- Retail merchandise and clothing
- Electronics and appliances
- Furniture and home goods
- Building materials
- Restaurant meals and prepared food
Tax-Exempt:
- Groceries for home consumption (exempt from state tax)
- Prescription medications
- Medical equipment prescribed by physicians
- Manufacturing equipment over $500 used directly in production
- Farm equipment
Special Rates
Cigarettes: 3.75% sales tax (became taxable December 1, 2019) plus excise taxes
Retail Marijuana: 8.75% total sales tax. Standard 3.75% plus special 5% marijuana tax
Lodging: Sales tax plus lodger’s taxes. Exemptions apply for stays over 29 consecutive days by individuals (not businesses).
Software as a Service: Generally not taxable when delivered electronically
Digital Goods: Downloads, streaming, e-books generally taxable
Calculating Correct Aurora Rates
Colorado uses destination-based sourcing. So you charge tax based on where the customer receives the product, not your location.
For Aurora sales:
- Determine exact delivery address
- Identify which county and special districts apply
- Check RTD service area status
- Apply the combined rate
A customer on one Aurora street might pay 8.00% while someone two blocks away pays 7.00% due to district boundaries.
Sales Tax Software Configuration
Manual rate calculation across Aurora’s jurisdictions creates errors. Sales tax automation tools calculate rates automatically using customer addresses.
Critical requirement: Proper configuration. Incorrectly set systems commonly overtax exempt items, apply wrong district rates, double-tax due to overlaps, or misclassify wholesale as retail.
HOST offers a Free Sales Tax Software Review to identify costly mistakes before they impact customers or trigger audits.
Filing Aurora Returns
Aurora administers its own sales tax separately from the state. Businesses typically file:
Colorado Department of Revenue: State sales tax and state-administered jurisdictions. Due the 20th of the month following the taxable period.
Aurora City: Filed separately if required.
Filing Frequency: Aurora assigns filing frequency based on your annual taxable sales:
- Monthly: $96,000+ in taxable sales annually ($300+ monthly tax)
- Quarterly: $4,801-$95,999 annually ($15-$300 monthly tax)
- Annually: $4,800 or less annually (under $15 monthly tax)
Zero-tax periods still require returns. Failing to file when no sales occurred triggers penalties.
Use Tax Note: Aurora also imposes use tax on vehicle purchases and building materials at combined rates of 7.75%-8.75% depending on county location.
Common Compliance Mistakes
Assuming One Rate Applies Everywhere
Aurora’s three-county geography means rates vary significantly. Businesses applying a single rate to all Aurora customers either overcharge or undercharge.
Missing Home Rule Registrations
Registering with the Colorado Department of Revenue doesn’t automatically cover Aurora. Missing separate registration creates years of unfiled returns and retroactive liabilities.
Incorrectly Taxing Exempt Items
Software misconfiguration commonly taxes groceries, prescriptions, or manufacturing equipment that should be exempt.
Ignoring the Occupational Privilege Tax Repeal
Aurora’s Occupational Privilege Tax was repealed January 1, 2025. Businesses continuing collection must refund customers and file amended returns.
HOST: Your Aurora Sales Tax Partner
Managing Aurora’s multi-jurisdictional requirements demands precision. Between varying county rates, RTD districts, home rule complexities, and economic nexus rules, compliance becomes a constant challenge.
Hands Off Sales Tax eliminates this burden.
What HOST Delivers
Nexus Analysis: We analyze your sales data to determine exactly where you’ve triggered Colorado thresholds, including Aurora obligations.
Complete Registration: HOST registers your business with Colorado Department of Revenue and Aurora, handling all paperwork and follow-up.
Accurate Rate Calculation: We configure your software to calculate correct combined rates for every Aurora address, accounting for RTD boundaries and special districts.
Comprehensive Filing: We prepare and file all required returns: state, Aurora, and every other Colorado jurisdiction.
Notice Management: We interpret and respond to confusing notices from Colorado or Aurora, protecting you from penalties.
Audit Defense: We’re your partner in resolving sales tax audits, organizing documentation and defending your position.
We’ve been 100% focused on sales tax since 1999. That’s over 25 years managing Colorado’s complex requirements.
Free Local Resource: Aurora offers free tax workshops for businesses covering licensing requirements, taxpayer rights, and audit processes. Check the Aurora-South Metro SBDC website for upcoming dates.
Ready to Simplify Aurora Compliance?
Aurora’s sales tax requirements don’t have to drain your time or create constant uncertainty. Every hour spent researching rates or filing returns is an hour not spent growing your business.
Whether you’re crossing Colorado’s economic nexus threshold, opening an Aurora location, or managing existing obligations, professional help eliminates guesswork and prevents costly mistakes.
Contact HOST today to discuss your Aurora sales tax needs. Let us handle the tax so you can focus on sales.
Want to learn more? Get our “10 Sales Tax Mistakes E-Commerce Sellers Make” e-book by contacting us.
Frequently Asked Questions
What is the sales tax rate in Aurora, Colorado?
The Aurora CO sales tax rate ranges from 7.00% to 8.75% depending on location. The most common rate is 8.00% in Aurora-Arapahoe County areas served by RTD.
Why does Aurora have different sales tax rates?
Aurora spans three counties: Arapahoe, Adams, and Douglas. Each with different county rates. Additionally, RTD service areas and special districts create rate variations by address.
Do I need to collect Aurora sales tax if I sell online?
Yes, if you exceed Colorado’s $100,000 economic nexus threshold in gross sales to Colorado customers during the current or previous calendar year.
Is Aurora a home rule city for sales tax?
Yes, Aurora may administer its own sales tax separately from state-collected jurisdictions, potentially requiring separate registration and filing.
Are groceries taxable in Aurora?
Food for home consumption is generally exempt from Colorado state sales tax, though local jurisdictions may impose taxes. Prepared foods and restaurant meals remain taxable.
How often do I file Aurora sales tax returns?
Filing frequency depends on your tax volume. Most businesses file monthly, with returns due the 20th of the following month. Some qualify for quarterly or annual filing.
