You cannot legally collect sales tax in Colorado without a state sales tax license. Colorado is also harder than most states, because more than 70 home-rule cities collect their own tax on top of the state. This guide shows how to register with the Colorado Department of Revenue (CDOR), what it costs, and what to do once you are licensed.
We cover online registration, the CR 0100 form, license fees, the 2026 economic nexus threshold, home-rule cities, and your ongoing filing duties.
| Colorado sales tax permit | Detail | Source |
|---|---|---|
| Fastest way to register | Online via MyBizColorado or Revenue Online | Colorado Department of Revenue |
| State license fee | $16 for a two-year term | CDOR standard retail license |
| Deposit | $50, refunded after you remit $50 in state tax | CDOR standard retail license |
| State base rate | 2.9% | Colorado Department of Revenue |
| Combined rate range | 2.9% to 11.2% (as of Jan 1, 2025) | Tax Foundation |
| Economic nexus threshold | $100,000 in retail sales, current or prior year | Colorado Department of Revenue |
| Transaction-count threshold | None | Colorado Department of Revenue |
| Home-rule self-collecting cities | More than 70 | Colorado Department of Revenue |
| License term | Two years, renewable | Colorado Department of Revenue |
What Is a Sales Tax Permit in Colorado?
A Colorado sales tax permit, also called a sales tax license or seller’s permit, is state authorization to collect and remit sales tax on retail sales of tangible personal property. The Colorado Department of Revenue issues it. Services are generally not taxed unless a statute names them as taxable. You need the license before you collect a single dollar of tax.
Do You Need a Sales Tax Permit in Colorado?
Yes, if you have physical or economic nexus in Colorado and make taxable retail sales. Nexus is the connection that triggers a collection duty. In-state retailers, remote sellers over the threshold, retailer agents, service enterprises that sell goods, mobile food vendors, and flea or farmers market sellers all generally need a license.
You likely need a Colorado license if any of these apply:
- You sell, lease, or deliver tangible personal property in Colorado.
- You maintain a place of business in the state, directly or through a subsidiary.
- You are a remote seller who crosses the economic nexus threshold.
- You act as a retailer’s agent or representative soliciting Colorado sales.
- You sell from a pushcart, truck, flea market, or farmers market booth.
What Counts as Physical Nexus in Colorado?
Physical nexus means a physical presence in Colorado. That includes an office, warehouse, distribution center, or salesroom, inventory stored in the state (including Fulfillment by Amazon (FBA) stock), and employees or agents soliciting sales in Colorado. Any one of these creates a duty to register and collect.
What Is Colorado’s Economic Nexus Threshold in 2026?
Colorado’s economic nexus threshold is $100,000 in retail sales delivered into the state in the current or prior calendar year, per the Colorado Department of Revenue. There is no 200-transaction threshold. Once you exceed $100,000 in the current year, you must register and start collecting by the first day of the first month that begins at least 90 days later.
Colorado adopted this rule after the U.S. Supreme Court decided South Dakota v. Wayfair, Inc. on June 21, 2018, ending the physical-presence requirement. House Bill 19-1240 (HB19-1240) codified the $100,000 standard effective June 1, 2019, and the transaction-count prong from the state’s original 2018 emergency rule was repealed. Check where else you have crossed a line with Commenda’s US nexus exposure guide.
| Nexus type | What triggers it | Threshold | Source |
|---|---|---|---|
| Physical | Office, warehouse, FBA inventory, employees, agents | Any presence | Colorado Department of Revenue |
| Economic | Retail sales delivered into Colorado | $100,000, current or prior year | CDOR out-of-state businesses |
| Marketplace | Facilitator aggregates its sellers’ sales | $100,000 (facilitator collects) | CDOR / HB19-1240 |
See the full rules on the Colorado Department of Revenue out-of-state businesses page.
What Is the Colorado Sales Tax Rate in 2026?
Colorado’s state base rate is 2.9%, one of the lowest in the U.S., per the Colorado Department of Revenue. Combined state, county, city, and special-district rates run from 2.9% up to 11.2%, according to the Tax Foundation (as of January 1, 2025). Colorado is destination-based, so you charge the rate at the buyer’s delivery address.
| Rate measure | Value | Source |
|---|---|---|
| State base rate | 2.9% | Colorado Department of Revenue |
| Average combined rate | 7.86% | Tax Foundation (Jan 1, 2025) |
| Maximum combined rate | 11.2% | Tax Foundation (Jan 1, 2025) |
| Average local rate rank | 3rd-highest of any state | Tax Foundation (Jan 1, 2025) |
Destination sourcing is set in the Colorado Revised Statutes (C.R.S.) at 39-26-104(3), per the Colorado Department of Revenue. The CDOR publication DR 1002 lists every local rate and updates twice a year, effective January 1 and July 1. Look up any address with the CDOR GIS rate tool, or use Commenda’s sales tax calculator and the Colorado sales tax guide for city-level detail.
How Do You Register for a Colorado Sales Tax Permit Online? (Step-by-Step)
Register online through MyBizColorado or the Colorado Department of Revenue’s Revenue Online portal. Both issue your license faster than paper. The paper CR 0100 form is the slower fallback. Choose MyBizColorado for a brand-new business, and Revenue Online for direct account setup plus ongoing filing.
| Method | Best for | How the license arrives | Source |
|---|---|---|---|
| MyBizColorado | New businesses registering several accounts at once | Online confirmation | Colorado Department of Revenue |
| Revenue Online | Direct DOR registration plus filing and payments | Online account | Colorado Department of Revenue |
| Paper CR 0100 | Sellers who must file by mail or in person | By mail, or same day at a service center | Colorado Department of Revenue |
Option 1: MyBizColorado (Best for New Businesses)
MyBizColorado handles trade name, wage withholding, and sales tax registration in one flow. It is the state’s streamlined portal for new businesses.
Option 2: Revenue Online
Revenue Online is the CDOR portal for direct registration plus ongoing filing, payment, and account management.
Option 3: Paper Form CR 0100
The CR 0100 is the Colorado Sales Tax and Withholding Account Application. Download it, then mail it or bring it to a Taxpayer Service Center with a valid photo ID and the license fees. Mail applications to the Colorado Department of Revenue, Taxpayer Service Center, PO Box 17087, Denver, CO 80217-0087.
What Information Do You Need to Register?
You need your federal Employer Identification Number (EIN), or Social Security Number (SSN) for a sole proprietor without an EIN, plus your legal and trade name, entity type, physical and mailing address, owner and officer names with SSNs, North American Industry Classification System (NAICS) code, estimated sales, and your taxable-sales start date.
- Federal EIN, or SSN for a sole proprietor
- Legal business name and any trade name or doing business as (DBA)
- Entity type and business activity description
- Physical and mailing address
- Owner, partner, or officer names and SSNs
- NAICS code and estimated monthly or annual sales
- Start date of taxable sales in Colorado
How Much Does a Colorado Sales Tax License Cost?
A Colorado standard retail sales tax license costs $16 for a two-year term, plus a one-time $50 deposit, per the Colorado Department of Revenue. The deposit is refunded automatically once you have collected and remitted $50 in state sales tax. The $16 fee prorates lower as the two-year cycle progresses.
| License type or period | Fee | Source |
|---|---|---|
| Standard retail, Jan–Jun of an even year | $16 | Colorado Department of Revenue |
| Standard retail, Jul–Dec of an even year | $12 | Colorado Department of Revenue |
| Standard retail, Jan–Jun of an odd year | $8 | Colorado Department of Revenue |
| Standard retail, Jul–Dec of an odd year | $4 | Colorado Department of Revenue |
| Charitable license | $8 | Colorado Department of Revenue |
| One-time deposit (first location only) | $50, refundable | Colorado Department of Revenue |
The deposit applies only to your first location. Temporary sellers at markets and events use single-event or multiple-event licenses, which carry their own fees, and a wholesale license is separate. See the CDOR standard retail license page for current amounts.
How Long Does It Take to Get a Colorado Sales Tax Permit?
Online registration is the fastest route, and MyBizColorado and Revenue Online can set up your account quickly. Paper CR 0100 applications have historically taken about 4 to 6 weeks by mail. In person at a Taxpayer Service Center, you can receive the license the same day.
Do You Need to Register Separately with Home-Rule Cities?
Often yes. More than 70 home-rule municipalities, including Denver, Boulder, Colorado Springs, and Aurora, self-collect their own sales tax and require separate registration on top of your state license, per the Colorado Department of Revenue. State-collected cities are covered by your CDOR license.
The Sales & Use Tax System (SUTS) lets you file for many jurisdictions in one place. It is a partial fix, because not every home-rule city participates. You may still register and file directly with some self-collecting cities.
Do Marketplace and Ecommerce Sellers Need Their Own Colorado Permit?
Marketplace-only sellers usually do not need their own Colorado permit. Marketplace facilitators such as Amazon, Etsy, and eBay collect and remit for third-party sellers once they cross the $100,000 threshold, under Colorado’s marketplace rule effective October 1, 2019, per the Colorado Department of Revenue. Sellers on their own website or direct channels must register themselves.
Watch your inventory. If a marketplace stores your goods in a Colorado warehouse, including FBA stock, that physical presence can create nexus and a registration duty on its own.
When Does Your Colorado Sales Tax License Expire?
A Colorado sales tax license expires at the end of each two-year cycle and must be renewed, per the Colorado Department of Revenue. Licenses run on the state’s standard two-year term, and CDOR charges the renewal fee on the same prorated schedule as a new license. You cannot legally keep collecting on an expired license.
What Happens After You Register? Colorado Compliance Checklist
Registration is the start, not the finish. After you get your license, confirm your nexus, register with any relevant home-rule cities, set up SUTS, configure destination-based rates, collect exemption certificates, and file by your assigned frequency, even when you have zero sales.
- Confirm physical and economic nexus in Colorado.
- Register with each relevant home-rule city.
- Set up a SUTS account for multi-jurisdiction filing.
- Configure destination-based rates by delivery address.
- Collect exemption certificates from tax-exempt buyers.
- File and remit by your assigned frequency, and file a zero return in any period with no sales.
- Display the license at your location, or keep a copy for remote operations.
- Renew every two years.
| Filing frequency | State tax collected | Source |
|---|---|---|
| Monthly | More than $300 per month | Colorado Department of Revenue |
| Quarterly | $15 to $300 per month | Colorado Department of Revenue |
| Annually | Less than $15 per month | Colorado Department of Revenue |
How Commenda Simplifies Colorado Sales Tax Compliance
Colorado’s home-rule patchwork is exactly where compliance breaks down. Commenda’s global indirect tax software tracks your physical and economic nexus across states and automates filings across state and home-rule jurisdictions from one platform. It registers you, monitors your thresholds, and files on your assigned schedule, so you stay certain your Colorado obligations are handled.
Use the US nexus exposure guide to see where you have crossed a threshold, and the sales tax calculator to look up combined rates by address.
Book a demo to get your free nexus exposure assessment.
