Do I Need to Charge Sales Tax in Colorado?

Overview of Colorado Sales Tax

Colorado’s state sales tax rate is 2.9 percent on retail sales unless the item is exempt. The state also allows for additional local sales taxes.

Sales Tax Obligations in Colorado

To apply for a Colorado sales tax license, complete the necessary paperwork providing your business details. Sales tax rates can vary across different local tax jurisdictions in Colorado.

Exemptions and Requirements

Certain items are exempt from Colorado sales tax, such as groceries, prescription drugs, and certain medical devices. The frequency of filing returns in Colorado depends on the amount of tax collected monthly.

Special Category Rates

Colorado offers special sales tax rates for specific goods, like clothing, at a rate of 2.9%.

Filing Requirements

Colorado requires businesses to file and remit sales tax either monthly, quarterly, or annually by the 20th of the following reporting period. The deadline for annual sales tax filing is January 20th of the following year.

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