Navigating Sales Tax in Colorado

This guide provides an overview of Sales Tax in Colorado, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Colorado.

Last Updated: May 2025
Group 427320837 e1763784339445

70

home-rule cities manage their own sales tax independently from the state.

Coloradoat a glance.

State

Colorado

Tax Rate Range

Base plus local rates

Economic Nexus Threshold

$100,000

Filling Deadlines

20th day of the month following the reporting period

Is SaaS Taxable?

No - subject to specifics

Base Tax Rate:

2.9%

When should your
business collect Sales
Tax in Colorado?

A business must collect Colorado sales tax when it establishes either physical or economic nexus. Once nexus is established, retailers must apply for a sales tax license and begin collecting Colorado sales tax by the first day of the first month beginning at least 90 days after surpassing the threshold. If the threshold was exceeded in the previous year, collection applies for the entire current year.

Colorado physical sales tax nexus.

Colorado considers you to have physical nexus when you have any in-state presence.

Sales tax physical nexus checklist for Colorado

The following conditions might establish a physical nexus in Colorado:

Which services are taxable in Colorado?

Colorado generally does not tax services at the state level, but some home-rule cities may tax certain services independently.

Colorado sales tax information:

Colorado uses destination sourcing, meaning sales tax is based on the location where the purchaser takes possession of the goods.

In Colorado, taxable items include tangible personal property such as prepackaged software delivered on physical media, digital goods like streamed or downloaded videos, music, and e-books, as well as shipping charges when they are part of the sale.

Retailers must apply online for a Colorado sales tax license using the SUTS portal or Revenue Online.

Once licensed, retailers must charge the combined state and local rates based on destination sourcing and collect tax at the point of sale. Collection applies beginning the first day of the first month that starts at least 90 days after passing the economic threshold. Collected tax is then remitted through SUTS or Revenue Online.

Sales Tax return due dates explained.

Colorado requires returns to be filed by the 20th day of the month following the reporting period. Monthly, quarterly, and annual filers all follow this rule. Monthly filing is required for retailers collecting $600 or more per month, quarterly filing is allowed for those collecting less than $600 monthly, and annual filing is available when liability is $15 or less. Wholesale businesses with $180 or less in liability may also file annually. If the 20th falls on a weekend or holiday, the return is due the next business day.

FAQs

Yes. Digital goods such as music, video, and e-books are taxable as tangible personal property, regardless of delivery method.

 

A retailer must start collecting sales tax by the first day of the first month at least 90 days after exceeding $100,000 in Colorado sales during the current year.

The state does not impose sales tax on services, but some home-rule cities may tax certain services, so sellers must check city requirements.

Related content.

Navigating Sales Tax in Colorado

This guide provides an overview of Sales Tax in Colorado, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Colorado.

Last Updated: May 2025
Group 427320837 e1763784339445

70

home-rule cities manage their own sales tax independently from the state.

Coloradoat a glance.

State

Colorado

Tax Rate Range

Base plus local rates

Economic Nexus Threshold

$100,000

Filling Deadlines

20th day of the month following the reporting period

Is SaaS Taxable?

No - subject to specifics

Base Tax Rate:

2.9%

When should your
business collect Sales
Tax in Colorado?

A business must collect Colorado sales tax when it establishes either physical or economic nexus. Once nexus is established, retailers must apply for a sales tax license and begin collecting Colorado sales tax by the first day of the first month beginning at least 90 days after surpassing the threshold. If the threshold was exceeded in the previous year, collection applies for the entire current year.

Colorado physical sales tax nexus.

Colorado considers you to have physical nexus when you have any in-state presence.

Sales tax physical nexus checklist for Colorado

The following conditions might establish a physical nexus in Colorado:

Which services are taxable in Colorado?

Colorado generally does not tax services at the state level, but some home-rule cities may tax certain services independently.​

Colorado sales tax information:

Colorado uses destination sourcing, meaning sales tax is based on the location where the purchaser takes possession of the goods.

In Colorado, taxable items include tangible personal property such as prepackaged software delivered on physical media, digital goods like streamed or downloaded videos, music, and e-books, as well as shipping charges when they are part of the sale.

Retailers must apply online for a Colorado sales tax license using the SUTS portal or Revenue Online.

Once licensed, retailers must charge the combined state and local rates based on destination sourcing and collect tax at the point of sale. Collection applies beginning the first day of the first month that starts at least 90 days after passing the economic threshold. Collected tax is then remitted through SUTS or Revenue Online.

Sales Tax return due dates explained.

Colorado requires returns to be filed by the 20th day of the month following the reporting period. Monthly, quarterly, and annual filers all follow this rule. Monthly filing is required for retailers collecting $600 or more per month, quarterly filing is allowed for those collecting less than $600 monthly, and annual filing is available when liability is $15 or less. Wholesale businesses with $180 or less in liability may also file annually. If the 20th falls on a weekend or holiday, the return is due the next business day.

FAQs

Yes. Digital goods such as music, video, and e-books are taxable as tangible personal property, regardless of delivery method.

 

A retailer must start collecting sales tax by the first day of the first month at least 90 days after exceeding $100,000 in Colorado sales during the current year.

The state does not impose sales tax on services, but some home-rule cities may tax certain services, so sellers must check city requirements.

Related content.

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