Colorado sales & use tax.
The facts an advisor checks first — rate, nexus threshold, marketplace rules — with links to the controlling authority.
Colorado: rate, nexus & administration.
- State rate
- 2.9%
- Local rates
- Among the most fragmented in the U.S. — ~70 home-rule cities self-administer their own bases and rates
- Economic nexus
- $100,000 in sales · effective December 1, 2018Transaction threshold removed in 2019.Controlling authority: Colo. Rev. Stat. § 39-26-102(3)(c)(I) ↗
- Marketplace facilitator
- Yes — effective October 1, 2019
- Streamlined (SST)
- Not a member
- Administered by
- Colorado Department of Revenue ↗
What to watch in Colorado
- Home-rule cities (Denver, Boulder, Colorado Springs…) administer their own sales taxes with their own bases — state registration alone does not cover them.
- A statewide retail delivery fee applies to motor-vehicle deliveries of taxable goods (indexed annually).
- The SUTS portal offers single-point remittance for many, but not all, local jurisdictions.
Rates, thresholds, and taxability change mid-year — verify against the Colorado Department of Revenue before advising. In L3i, every determination is cited to the controlling authority.
The Colorado voluntary disclosure agreement.
Behind in Colorado? There’s a front door. The voluntary disclosure program lets a business settle unregistered-period exposure on defined terms — before the state finds it first. The terms that shape the client conversation:
Administered by the Colorado Department of Revenue ↗ · also reachable through the MTC multistate voluntary disclosure program. Program terms as of February 2026 — confirm current terms before filing. L3i pairs the exposure math with the filing itself — see exposure analysis & VDA services.
Colorado, in brief.
What is the economic nexus threshold in Colorado?
$100,000 in sales, effective December 1, 2018. Transaction threshold removed in 2019. Once the threshold is crossed, remote sellers must register with the Colorado Department of Revenue and begin collecting.
What is the sales tax rate in Colorado?
The state sales tax rate is 2.9%. Among the most fragmented in the U.S. — ~70 home-rule cities self-administer their own bases and rates.
Do marketplace facilitators collect Colorado sales tax?
Yes — marketplace facilitators have been required to collect since October 1, 2019. Direct (non-marketplace) sales remain the seller’s obligation.
How does a remote seller register for Colorado sales tax?
Register with the Colorado Department of Revenue before collecting — a remote seller must register once it crosses the economic nexus threshold ($100,000 in sales).
Does Colorado offer a voluntary disclosure agreement (VDA)?
Yes — the Colorado Department of Revenue administers a voluntary disclosure program with a lookback of 36 months (3 years). Penalties are generally waived; interest is generally still due. An advisor can approach the state anonymously before disclosing the client’s identity.
A page tells you the rule. The platform applies it — and remembers why.
L3i runs Colorado determinations against a deterministic rules engine, cites the controlling authority, and captures your firm’s judgment so the next Colorado question starts further ahead.
Schedule a Demo →