Colorado Sales Tax Guide for E-Commerce Retailers

Fast Facts About Colorado Sales Tax

Colorado state sales tax rate

2.9%

Does Colorado have local sales tax rates?

Yes

Colorado taxing authority

Department of Revenue

Colorado sales tax questions phone number

303-866-3711

 

Am I required to collect sales tax in Colorado?

Businesses that have an employee, location (including inventory in a warehouse), or who do other business in the state are required to register for a sales tax permit and collect sales tax from buyers in Colorado. 

E-commerce businesses with economic nexus in Colorado are also required to register and collect.

You have economic nexus in Colorado if you made more than $100,000 in sales to buyers in Colorado in the previous or current calendar year, excluding marketplace sales.

How to Register for an Colorado Sales Tax Permit

Register for a Colorado sales tax license online at the Colorado Department of Revenue.

Colorado is unusual in that taxpayers may also be required to register for a home rule city sales tax permit. Need help? Not sure if you’re dealing with a home rule city? Contact us for help with your Colorado sales tax registration.

How to Collect Colorado Sales Tax

Colorado is a destination-based sales tax state. This means that whenever you make a sale to a buyer in Colorado you are required to collect the sales tax rate (state + any local sales tax) at the buyer’s location. 

For example, say you live in Massachusetts but make a sale to a buyer in Colorado. You’d be required to charge the Colorado state rate, plus any local city, county and special taxing district rates to your buyer.

Learn more about origin and destination-based sales tax sourcing here. Learn more about how to collect the right amount of state plus local sales tax here.

Is shipping taxable in Colorado?

No, as long as the shipping charges are separately stated on the invoice then the shipping charges your customers pay to transport the item are not taxable in Colorado.

Learn more about sales tax on shipping charges here.

Colorado Sales Tax Due Dates

Colorado sales tax is due the 20th day of the month following the filing period end date. 

For example, a monthly sales tax return for January 2025 would be due February 20, 2025.

How to File Sales Tax in Colorado

When your Colorado sales tax due date rolls around, you can either file yourself online or let a partner like HOST take this onerous task off your plate.

Learn more about handing off your sales tax filings to HOST here!

More about Colorado Sales Tax

Learn more about Colorado sales tax at the Colorado Department of Revenue.