Colorado sales tax at a glance
| State base rate | 2.9% |
| Average combined rate | ~7.81% (state + county + city + districts) |
| National rank | 17 of 51 by average combined rate (all-state average 6.61%) |
| Groceries | Generally exempt |
| Major cities | Denver, Colorado Springs, Aurora, Fort Collins, Lakewood |
Worked examples — what you actually pay in Colorado
Using the average combined rate of 7.81% (your exact city rate may be higher or lower):
| Purchase | Tax | Total |
|---|---|---|
| $25 | $1.95 | $26.95 |
| $100 | $7.81 | $107.81 |
| $500 | $39.05 | $539.05 |
| $1,000 | $78.10 | $1078.10 |
| $10,000 | $781.00 | $10781.00 |
Sales tax rates
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How Colorado compares with other states
The states closest to Colorado on average combined rate, plus the national extremes — all rates are average combined (state + local):
| State | Average combined rate | Tax on $1,000 |
|---|---|---|
| Colorado (this page) | 7.81% | $78.10 |
| Texas | 8.2% | $82.00 |
| Minnesota | 8.04% | $80.40 |
| New Mexico | 7.83% | $78.30 |
| South Carolina | 7.46% | $74.60 |
| Louisiana — highest in the US | 9.56% | $95.60 |
| Oregon — lowest in the US | 0% | $0.00 |
What this means in Colorado
At 7.81% average combined, Colorado sits near the top of the national table — rank 17 of 51, 1.2 points above the all-state average of 6.61%. On a $10,000 purchase the tax is about $781, roughly $120 more than the same purchase at the average state's rate. For big-ticket items, confirming the exact local rate before you buy is worth real money.
Groceries for home consumption are exempt, so the weekly food shop is largely outside this tax. A state that taxed a $150 weekly basket at Colorado's combined rate would collect about $609.18 a year from it; in Colorado that charge falls only on non-food items and prepared food. Sellers should still check category rules — the exemption covers food, not everything in a supermarket.
How to calculate Colorado sales tax (3 steps)
- Find your combined rate. Start with the 2.9% state rate, then add your county, city and any special-district rates for the exact purchase location.
- Multiply. Tax = taxable price × (combined rate ÷ 100). Shipping and discounts change the taxable base in some cases — discounts usually reduce it, delivery charges vary.
- Add (or extract). Total = price + tax. Working backwards from a tax-inclusive price: pre-tax price = total ÷ (1 + rate ÷ 100). Our calculator does both directions instantly.
Groceries and exemptions in Colorado
Groceries are exempt from the state tax; many local jurisdictions tax them, so combined food tax varies by city. Prescription medicines are exempt in almost every state; clothing, services and digital goods follow state-specific rules, so check the Colorado Department of Revenue for category detail before assuming an item is tax-free.
Sales tax in major Colorado cities
Combined rates inside Colorado are set city by city:
Selling into Colorado? Read this
If you sell online and ship to Colorado, economic nexus rules generally require you to collect tax once your Colorado sales pass the state's threshold (commonly $100,000). You collect at the rate for the buyer's delivery address — which is why combined-rate accuracy matters more than the state base rate. The full calculator lets you test any rate, extract tax from totals, and model VAT for international sales.