How Colorado Sales Tax Works
Colorado's state government imposes a 2.90% sales tax on most retail purchases. Counties, cities, and special districts can layer additional local sales tax on top — pushing combined rates to a population-weighted average of 7.89% statewide.
Colorado has the lowest state sales tax rate of any state with one (2.9%), but local jurisdictions add the most aggressive surtaxes — combined rates often exceed 8%.
Groceries in Colorado
Colorado exempts unprepared groceries from the 2.9% state sales tax; many home-rule cities still tax food at the local level.
How Colorado Compares to Neighboring States
Sales tax on a $1,000.00 purchase in Colorado versus neighboring states, using each state's average combined rate (state + local):
| State | State Rate | Combined Rate | Tax on $1,000 | vs. Colorado |
|---|---|---|---|---|
| Colorado (here) | 2.90% | 7.89% | $78.90 | — |
| Wyoming | 4.00% | 5.39% | $53.90 | -$25.00 |
| Nebraska | 5.50% | 6.98% | $69.80 | -$9.10 |
| Kansas | 6.50% | 8.71% | $87.10 | +$8.20 |
| Oklahoma | 4.50% | 9.06% | $90.60 | +$11.70 |
| New Mexico | 4.88% | 7.68% | $76.80 | -$2.10 |
A negative "vs." figure means a lower sales tax bill on the same purchase. Specific addresses can vary materially from the state-wide average.
Frequently Asked Questions
What is the Colorado sales tax rate for 2026?
Colorado's state sales tax rate is 2.90% for 2026. When combined with the average local sales tax of 4.99%, most Colorado residents pay a typical combined rate of 7.89%.
How much sales tax will I pay on a $100 purchase in Colorado?
On a $100 purchase, expect approximately $2.90 in state sales tax, or about $7.89 including average local sales tax (combined 7.89%). Total cost: roughly $107.89.
Are groceries taxed in Colorado?
Colorado exempts unprepared groceries from the 2.9% state sales tax; many home-rule cities still tax food at the local level.
Is sales tax calculated before or after discounts in Colorado?
Colorado follows the standard rule used by virtually all states: sales tax is calculated on the final discounted price, not the original price. If a $200 item is on sale for $150, you pay sales tax on $150. Manufacturer coupons can be treated differently in some states.
How is this Colorado sales tax estimate calculated?
The calculator applies Colorado's 2.90% state sales tax rate plus whatever local rate you enter (city + county + special districts). The default Local Rate is 0%; click a city in the table above to fill in its local portion, or look up your specific address with the Colorado Department of Revenue tool.