Notable Colorado Tax Statistics and Information
We’ve collected a list of notable Colorado tax statistics and information below.
For a deeper look at taxes for small Colorado businesses, read our guide to demystifying small business taxes.
Or read about the Colorado seniors-only tax exemption.
- Colorado has a flat individual income tax rate of 4.4%.
https://taxfoundation.org/location/colorado/ - The average combined state and local sales tax rate in Colorado is 7.81%.
https://taxfoundation.org/location/colorado/ - Colorado’s state sales tax rate of 2.9% is one of the lowest in the country.
https://taxfoundation.org/location/colorado/ - Five cities in Colorado, including Denver, collect a local income tax known as an occupational privilege tax.
https://states.aarp.org/colorado/state-taxes-guide - Colorado’s gas tax is 29 cents per gallon.
https://taxfoundation.org/location/colorado/ - Groceries, prescription drugs, and medical equipment are exempt from sales tax in Colorado.
https://states.aarp.org/colorado/state-taxes-guide - The Colorado sales tax Service Fee rate (also known as the Vendor’s Fee) is 5.3% for net taxable sales of $100,000 or less.
https://www.metrodenver.org/sites/default/files/data_central/Taxes%20%26%20Incentives%20Colorado%20Sales%20%26%20Use%20Tax%20Rates%201.2023.pdf - For net taxable sales between $100,001 and $1,000,000, the Colorado sales tax Service Fee rate is 4.0% with a maximum allowance of $1,000.
https://www.metrodenver.org/sites/default/files/data_central/Taxes%20%26%20Incentives%20Colorado%20Sales%20%26%20Use%20Tax%20Rates%201.2023.pdf - The Retail Marijuana Sales (RMS) tax rate in Colorado is 15% with no exemptions.
https://www.metrodenver.org/sites/default/files/data_central/Taxes%20%26%20Incentives%20Colorado%20Sales%20%26%20Use%20Tax%20Rates%201.2023.pdf - Colorado’s average property tax rate is 0.45% of a home’s assessed value.
https://taxfoundation.org/location/colorado/ - 66% of all 2020 tax returns in Colorado were single returns, while 34% were joint returns.
https://states.aarp.org/colorado/state-taxes-guide - Nearly 70% of single tax returns in Colorado have an Adjusted Gross Income (AGI) under $50,000.
https://states.aarp.org/colorado/state-taxes-guide - Almost 80% of joint tax returns in Colorado have an income over $50,000.
https://states.aarp.org/colorado/state-taxes-guide - Colorado offers deductions on Social Security and retirement income, depending on the taxpayer’s age.
https://states.aarp.org/colorado/state-taxes-guide - Colorado has no estate or inheritance tax.
https://taxfoundation.org/location/colorado/ - The maximum combined sales tax rate in some Colorado municipalities can be as high as 11.2%.
https://smartasset.com/taxes/colorado-tax-calculator - Colorado imposes a road usage fee of 3 cents per gallon on gasoline, which will increase to 4 cents per gallon on July 1, 2024.
https://states.aarp.org/colorado/state-taxes-guide - Food sold in restaurants is taxable in Colorado, as are short-term rentals and hotel accommodations.
https://states.aarp.org/colorado/state-taxes-guide - Low-emitting heavy vehicles are exempt from Colorado sales tax.
https://states.aarp.org/colorado/state-taxes-guide - Colorado retailers and marketplace facilitators with $500,000 or more in retail sales during the prior year must collect retail delivery fees. https://states.aarp.org/colorado/state-taxes-guide
