Denver, Colorado Sales Tax Rate

Economic Context. Denver has the 2nd largest aerospace economy in the US (behind only Seattle).

The combined sales tax rate in Denver is 9.150%, composed of the Colorado state rate of 2.900% plus a local portion of 6.250%.

Key industries driving Denver's economy include Aerospace & Defense, Telecommunications, Technology, Healthcare — each may have distinct sales tax treatment under Colorado law.

The formula to calculate sales tax for any purchase:

For a $150.00 purchase in Denver: tax is $13.72 ($150.00 × 0.09150), total is $163.72.

Sales tax in Denver is administered locally by City and County of Denver. Denver's 8.81% rate is above average for Colorado, reflecting Denver County's higher add-ons compared to suburban counties like Jefferson (Lakewood 7.5%) and Adams (Thornton 8.5%).

Special tax rules specific to Denver:

• Denver is a consolidated city-county. The 8.81% combined rate includes the low 2.9% state rate plus Denver's local add-ons. RTD (transit) and special district taxes contribute to the total.

Denver-specific: Denver's aerospace industry (Lockheed Martin, ULA, Sierra Space) and cannabis industry both create unique tax considerations that don't apply in most US cities.

Denver County's consolidated city-county structure means its add-ons include county, city, and RTD transit taxes within a single rate.

While sales tax is collected by registered vendors at the point of sale, use tax is a self-assessed tax that applies when taxable goods are purchased from a vendor who did not collect sales tax. The rates for both are identical: 9.150%.

If you purchase equipment, software, or supplies from out-of-state merchants and no tax was charged, you are legally obligated to report and pay use tax to Colorado Department of Revenue. Use tax audits are common — failure to accrue on untaxed invoices is a frequent audit finding.

Businesses with physical presence or economic nexus in Colorado must register with Colorado Department of Revenue before collecting tax.

For full registration, filing, exemption certificate, and audit guidance, see the Colorado sales tax guide.

Businesses in Denver must maintain resale certificates and transaction records to comply with Colorado tax audits. If you sell wholesale, obtain a valid resale certificate from the buyer.

For detailed guidance, see the Colorado sales tax page.