| Colorado | 2.90% |
| Denver | 5.15% |
| City + District Rates Range | 0.00% – 1.10% |
| Combined Sales Tax Rates Range | 8.05% – 9.15% |
Businesses are required to collect sales tax if they have a nexus in Colorado and sell to residents of Denver, whether at a physical location or online.
Physical Nexus: This occurs when a business has a tangible presence in the state. Examples include having a store, warehouse, office, or employees in Colorado. If your business operates any of these within the state, then it means you have a physical nexus and you must collect sales tax from customers in Denver. Economic Nexus: This is based on the volume of sales or the number of transactions a business conducts in the state. For instance, if your business exceeds a certain threshold of sales or transactions in Colorado, which is often defined as a specific dollar amount or number of transactions, you establish economic nexus. This means even if you don’t have a physical presence in the state, you are still required to collect sales tax from customers in Denver.
