State guide · CO
Colorado sales tax and property tax
Colorado's own rate is the smallest of any state that has one; what the buyer pays depends on a city that may run its sales tax entirely on its own.
Facts read on official Colorado pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 2.9%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $2,828
- Effective property rate
- 0.49% · #42 of 51
Colorado's state sales tax is 2.9%, the lowest rate of any state that levies one, and it is rarely the rate that matters. Cities, counties and special districts such as RTD, the Scientific and Cultural Facilities District and Rural Transportation Authorities add their own, and home-rule cities may run a separate sales tax with their own license, base and exemptions that the Department of Revenue does not collect. Food for home consumption is exempt from the state tax, though cities and counties may still tax it; prescription drugs are exempt, clothing is taxed, and there is no holiday. Property tax is low against home prices: the median owner paid $2,828 in 2024 on a $574,600 home (Census ACS), an effective rate of 0.49%, ranked 42 of 51. For 2026, homes are assessed at 7.05% of actual value for school levies and 6.8% for other local levies, after a 10% reduction on the first $700,000.
Total to pay
$102.90
Sales tax $2.90 · 2.9% of the price
| Price before tax | $100.00 |
| State tax · 2.9% | $2.90 |
| Local tax · 0% | $0.00 |
| Total | $102.90 |
Rule applied: general state rate. Exact local rate for an address: Colorado rate lookup. How this is calculated.
Sales tax in Colorado
A $2,000 mountain bike owes $58.00 of state tax, which is the easy part. The local part comes from up to three sources. State-administered city and county taxes are filed with the Department of Revenue along with the state tax. Special district taxes, from the Regional Transportation District to the cultural facilities district and the rural transportation authorities, apply only inside each district's boundaries. And home-rule cities can collect their own tax directly, with their own definitions of what is taxable, so a business there may need a city license as well as a state one. The state's Sales and Use Tax System (SUTS) lets businesses file for participating home-rule cities in one place, but participation is up to each city.
Food shows how far the layers can diverge. The state exempts food for home consumption, with Colorado's own exceptions such as candy and soft drinks. A city or county may still tax groceries; if it exempts them, it must use the state's definition, and every jurisdiction must exempt purchases paid with SNAP or WIC. The RTD and other district taxes follow the state treatment, so they never apply to exempt food.
Timing is predictable for state-administered rates: changes take effect only on January 1 or July 1, when the DR 1002 rate table is reissued. Use the state's address lookup, add any home-rule city rate, and enter the local part in the calculator above. Two recent changes concern retailers more than shoppers: since January 1, 2026, sellers no longer keep a vendor fee on the state tax, and with the penny no longer minted, the Department issued rounding guidance in March 2026.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 2.9% | yes | Colorado's 2.9% state rate is the lowest of any state with a sales tax, but cities, counties and special districts add their own taxes. Home-rule cities can run their own sales tax with their own rules, separately from the Department of Revenue. |
| Groceries (food for home) | 0% | yes | Food for home consumption (SNAP/WIC-eligible items, with Colorado exceptions such as candy and soft drinks) is exempt from the 2.9% state tax. Cities and counties may choose to tax food; RTD, CD and RTA district taxes follow the state treatment. |
| Clothing | 2.9% | yes | Clothing is taxable as tangible personal property; Colorado has no clothing exemption or sales tax holiday. |
| Prescription drugs | 0% | no |
Local sales taxes
Levied by state-administered city, county and special district taxes (e.g. RTD, Scientific and Cultural Facilities District, Rural Transportation Authorities) plus self-collected taxes of home-rule cities, which set their own base and exemptions. State-administered local rate changes can take effect only on January 1 or July 1. Find the exact combined rate for an address with the official Colorado lookup, then type the local part into the calculator above.
Sales tax holidays in 2026
Colorado has no sales tax holiday.
Worth knowing about Colorado sales tax
- Home-rule cities may administer their own sales tax, with their own licensing, rates and exemptions; the Department of Revenue does not collect those taxes. source
- Businesses can file and pay participating home-rule city taxes through the state's Sales & Use Tax System (SUTS). source
- Since January 1, 2026 (HB25B-1005), retailers can no longer keep the state sales tax vendor service fee; local service fees may still apply. source
- State-administered sales tax rate changes can only take effect on January 1 or July 1; the DR 1002 rate publication is updated on those dates. source
- Cities and counties that exempt food must use the state's definition, and all must exempt purchases paid with SNAP or WIC. source
- With the end of penny production in November 2025, the Department issued rounding guidance for retailers in March 2026. source
Property tax in Colorado
Colorado computes two assessed values for every home. For 2026, school district levies apply to 7.05% of actual value, a rate the State Board of Equalization can lower to keep schools within their revenue limit. Every other local levy, county, city or special district, applies to 6.8% of actual value after first cutting 10% from the first $700,000, with a floor of $1,000 of assessed value. County assessors set values, the mill levies of each taxing body apply to the matching assessed value, county treasurers collect, and the Division of Property Taxation oversees the process.
For a home with an actual value of $600,000, the school levies apply to $42,300, while the other levies apply to $540,000 × 6.8%, or $36,720. Each mill then costs $42.30 on the school side and $36.72 on the other side. At the Census ratio of 0.49%, a home of that value pays about $2,952 a year.
There is no homestead exemption for all owners. Seniors aged 65 or older who have owned and lived in their home for at least 10 consecutive years before January 1 are exempt on 50% of the first $200,000 of actual value, so $100,000 of value drops out of the calculation. Apply to the county assessor between January 1 and July 15, or by August 15 without appeal rights. A transitional rule for seniors who moved after qualifying ends after tax year 2026 under SB26-116. Veterans rated 100% permanently disabled, their surviving spouses and Gold Star spouses have a separate exemption, whose deadlines align with the senior ones from January 1, 2027.
Property tax on a home in Colorado
Typical bill per year
$2,827
| Per month | $236 |
| Median effective rate in Colorado | 0.49% |
| Median bill paid | $2,828 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Colorado |
|---|---|
| Median home value (owner-occupied) | $574,600 |
| Median real estate taxes paid | $2,828 |
| with a mortgage | $2,928 |
| without a mortgage | $2,586 |
| Effective rate (tax ÷ value) | 0.49% |
| Rank by effective rate (1 = highest) | 42 of 51 |
| Rank by median bill | 29 of 51 |
How the taxable value is set
Taxable value = actual value x assessment rate. For 2026, residential property uses two rates: 7.05% for school district levies and 6.80% for other local government levies, the latter applied after a 10% reduction of the first $700,000 of actual value (minimum $1,000 assessed value). The school rate can be adjusted downward by the State Board of Equalization to respect the school revenue limit. Who levies the tax: Local: counties, municipalities, school districts and special districts levy mills on assessed value; county assessors value property and county treasurers collect. The Division of Property Taxation (DOLA) oversees administration.
Other property tax relief
- Senior primary residence classification. For 2025 and 2026, seniors who received the senior exemption in 2020 or later at a previous home can keep a comparable benefit on a new primary residence; SB26-116 ends this classification after tax year 2026. source
- Veterans with a disability and Gold Star spouses. Separate exemption program for veterans with a 100% permanent service-connected disability rating (or individual unemployability) who own and occupy their home on January 1, their surviving spouses, and Gold Star spouses. source
Worth knowing about Colorado property tax
- The 2026 residential assessment rate for school levies is 7.05%. source
- The 2026 residential rate for non-school local levies is 6.80%, after first reducing actual value by 10% on the first $700,000. source
- The senior exemption requires 10 consecutive years of ownership and occupancy before January 1 of the application year. source
- SB26-116 eliminates the qualified-senior primary residence classification after property tax year 2026. source
- From January 1, 2027, deadlines for the disabled veteran exemption align with the senior exemption deadlines. source