Colorado state sales tax rate
The base state sales tax rate in Colorado is 2.90%. State 2.9%; home-rule cities add their own (combined commonly 7-10%).
Average local tax adds approximately 4.88%, bringing the typical combined rate to about 7.78%.
Do services need sales tax in Colorado?
Generally no — Colorado taxes the sale of tangible personal property, not most services. Some specific services (typically utilities, accommodations, and certain repairs) are taxable. Verify your service category with the Colorado Department of Revenue.
Common exemptions
- Most professional services
- Custom software (electronically delivered, post-2021 rule)
- Personal services
State rate
2.90%
Services
Generally exempt
Avg local add
4.88%