The Colorado state sales tax rate is 2.9%. Companies doing business in Colorado need to register with the Colorado Department of Revenue and some municipalities for collecting sales tax. Total tax rates can be up to 11.2% depending on municipalities.
Sanctions and Penalties
There are sanctions and penalties for not paying small business taxes in Colorado. These can vary depending on amount owed and time unpaid. Some common sanctions and penalties include fines, interest, liens, levies, and loss of licenses or permits.
Tax Rates and Deductions
The personal income tax rate in Colorado is 4.55% regardless of income. Single taxpayers get a $12,550 deduction, and married taxpayers a $25,100 deduction. The Colorado corporate income tax rate is 4.55% on taxable income. Colorado allows businesses to retain 3.33% of collected sales tax as long as the return is timely filed and tax fully paid.
Colorado first implemented a General State Sales Tax in 1935. All businesses selling taxable goods and services must collect and submit sales tax.