Colorado sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 2.9% |
| Local rates | Average 4.99%, highest 9.10% |
| Average combined rate | 7.89% |
| Groceries | No state tax; local variesFood for home consumption is exempt from state tax. Local governments choose whether to tax it, and many cities do. |
| Prescription drugs | ExemptPrescription drugs are exempt from Colorado state sales tax. |
| Clothing | TaxedClothing and shoes are taxable. Colorado has no statewide sales tax holiday. |
Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the Colorado Sales Tax Lookup (Department of Revenue).
Worked examples
A $600 pair of skis at the average combined rate (7.89%)
| Rate | 2.9% state + 4.99% local = 7.89% |
|---|---|
| Price before tax | $600.00 |
| Sales tax | $47.34 |
| Total | $647.34 |
Working: $600.00 × 7.89% = $47.34. Local taxes are more than half of the bill here. Ski towns and Denver suburbs can be higher, so check the exact address.
Working back from a $107.89 total
| Rate | 2.9% state + 4.99% local = 7.89% |
|---|---|
| Price before tax | $100.00 |
| Sales tax | $7.89 |
| Total | $107.89 |
Working back: $107.89 ÷ 1.0789 = $100.00, so the tax was $7.89. At the average combined rate, dividing by 1.0789 gives a $100 price. A home-rule city may tax the item differently, so check its rules too.
Home-rule cities collect their own tax
Colorado is unusual because many home-rule cities, including Denver, Aurora, Colorado Springs and Boulder, administer their own sales tax with their own rules, forms and sometimes their own definitions of what is taxable. Those cities collect directly from businesses, while the Department of Revenue collects state, county, special district and statutory city taxes. That means one address can have several taxing authorities. The state's Sales Tax Lookup tool, built on GIS boundaries, returns every tax that applies to an address.
Food and the retail delivery fee
Food for home consumption is exempt from the 2.9% state tax, but cities, counties and districts decide for themselves, and many tax groceries. Colorado also charges a retail delivery fee on deliveries by motor vehicle that include at least one taxable item: $0.31 per delivery from 1 July 2026 to 30 June 2027. Retailers with $500,000 or less in retail sales in the prior year are exempt from the fee. Prescription drugs are exempt from state tax.
Colorado vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| Colorado | 2.9% | 7.89% | No state tax; local varies |
| Wyoming | 4% | 5.39% | Exempt |
| Nebraska | 5.5% | 6.98% | Exempt |
| Kansas | 6.5% | 8.71% | No state tax; local applies |
| Oklahoma | 4.5% | 9.06% | No state tax; local applies |
| New Mexico | 4.875% | 7.68% | Deductible (not taxed) |
| Utah | 6.1% | 7.42% | 3% statewide food rate |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.