Denver sales tax guide
Shopping in Denver means paying one of the higher combined sales tax rates in Colorado: 8.81%, against a statewide average combined rate of 7.81%. Among the 30 major US cities we track, Denver ranks 9 by combined rate. This guide shows how the rate is built and what it adds to real purchases.
How the Denver rate is built
Colorado's 2.90% state base is the lowest in the US, but Denver is a home-rule, self-collected city: 4.81% city + 1.00% RTD + 0.10% cultural district — sellers file separately with the city and the state.
No single government sets the 8.81% figure. The state of Colorado sets the base rate of 2.9%, and county, city and special-district taxes stack on top of it. That stacking is why the rate can change across a city boundary — and why the address of the sale, not the seller's home address, decides the tax on most transactions.
What the rate does to real purchases
| Purchase | Tax at 8.81% | Total |
|---|---|---|
| $25 purchase | $2.2 | $27.2 |
| $100 purchase | $8.81 | $108.81 |
| $500 purchase | $44.05 | $544.05 |
| $1,000 purchase | $88.1 | $1,088.1 |
| $10,000 purchase | $881 | $10,881 |
| $35,000 car (where vehicles are taxed at sale) | $3,083.5 | $38,083.5 |
Groceries: Groceries are exempt from the state tax; many local jurisdictions tax them, so combined food tax varies by city. Prepared food and restaurant meals are taxed at the full rate in most jurisdictions, even where groceries for home consumption are exempt or reduced.
Denver vs other major US cities
Denver is the Colorado city we track in detail. Set against the extremes of the 30-city dataset (average 7.93%), its position is clear:
| City | Combined rate | Tax on $1,000 |
|---|---|---|
| Denver (this guide) | 8.81% | $88.1 |
| Seattle — among the highest | 10.35% | $103.5 |
| Chicago — among the highest | 10.25% | $102.5 |
| Portland — among the lowest | 0% | $0 |
| Louisville — among the lowest | 6% | $60 |
What this means in Denver
On planned purchases the rate is a line item, not a rounding error: $881 on $10,000, which is $100 more than the same purchase at the Colorado average rate. Households near a lower-rate city boundary sometimes route vehicles, appliances and furniture purchases accordingly; on weekly spending, the difference is a few dollars a month and rarely worth a trip.
Selling in Denver
If your business delivers into Denver, the rate your customer pays is generally the combined rate at their address. Once your Colorado sales pass the state's economic-nexus threshold you must register, collect and remit — the threshold and filing basics are covered on the Denver sales tax page, and the statewide picture is in the Colorado tax guide.
Sales tax · combined rate
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
Denver sales tax FAQs
What is the sales tax rate in Denver?
The combined sales tax rate in Denver is approximately 8.81%, made up of the Colorado state rate plus county, city and district taxes. Colorado's 2.90% state base is the lowest in the US, but Denver is a home-rule, self-collected city: 4.81% city + 1.00% RTD + 0.10% cultural district — sellers file separately with the city and the state.
How much tax do I pay on a $100 purchase in Denver?
At 8.81%, a $100 taxable purchase in Denver carries about $8.81 in sales tax, for a total of $108.81. On $1,000 the tax is $88.1; on $10,000 it is $881.
Why is the Denver rate different from the rest of Colorado?
Sales tax is stacked: the state sets a base rate and local governments add their own. Denver adds local layers that bring the combined rate to 8.81%, compared with a statewide average combined rate of about 7.81% — a gap of 1 points.
How does Denver compare with other US cities?
Denver ranks 9 of the 30 major cities in our dataset by combined rate (dataset average 7.93%). The highest is Seattle at 10.35% and the lowest is Portland at 0%. Against the all-state average combined rate of 6.61%, Denver is 2.2 points higher.
Are groceries taxed in Denver?
Groceries are exempt from the state tax; many local jurisdictions tax them, so combined food tax varies by city.
Where can I verify the exact rate for a Denver address?
The 8.81% figure is the typical combined rate inside city limits; district taxes can shift it block by block. Verify the rate for a specific address with the Colorado Department of Revenue before a major purchase or a filing.
Reviewed by Tahir Shehzad, ACMA · State tax data reviewed November 2026 against official sources — see our Methodology and Editorial Policy. Figures are educational estimates, not tax or financial advice. For a filing decision, confirm with the Colorado Department of Revenue.