Minimum Sales Rate Tax for 2024
| 2.90% | Column content | Column content | Column content | Column content | |
| 4.81% | Column content | Column content | Column content | Column content | |
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| Rtd Greater Denver | 1.0% | Column content | Column content | Column content | Column content |
| Scientific & Cultural Fac.(cd) | 0.1% | Column content | Column content | Column content | Column content |
| Regional Transport Authority | Column content | Column content | Column content | Column content | |
| Minimum combined sales tax rate value | 8.81% | Column content | Column content | Column content | Column content |
| Special tax | Column content | Column content | Column content | Column content | |
| Economic sales nexus threshold | $500,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | N/A | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | 30th of the month following the reporting period. | Column content | Column content | Column content | Column content |
The statewide state sales tax rate in Colorado is 2.9%, but since the Rtd Greater Denver tax 1%, Scientific & Cultural Fac.(cd) tax is 0.1% and the city-specific tax 4.81%, the minimum sales tax rate for Denver is 8.81%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Denver businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Denver
Short-term car rentals, which typically refer to rentals for a period of less than 30 days, are taxed at a rate of 7.25%. This rate applies to both the rental fee and any additional charges associated with the rental. For sales of food, beverages, and liquor, a tax rate of 4.0% is imposed, covering items purchased for immediate consumption, including both on-premises dining and take-out orders. Lastly, aviation fuel, used for aircraft operations, is taxed at a rate of $0.04 per gallon. This tax is specific to fuel used in aviation and is distinct from taxes applied to other types of fuel or transportation.
Services
Generally not taxable unless connected to the sale of taxable goods, recreational activities, or repair/maintenance of taxable items.
Goods
Most items like appliances, cars, furniture, sporting equipment, and electronics are subject to sales tax.
Clothing
Taxable.
Electronics
Taxable.
SaaS
Not taxable, as it is classified as a service.
Digital Products
Generally not taxable if delivered electronically.
Software
Taxable when prewritten or downloaded.
Freight/Shipping
Shipping charges for taxable unless separately stated.
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