Colorado · Sales tax · updated
Colorado sales tax permit: who needs one
Yes. Businesses making taxable sales in Colorado need a permit from Colorado's tax agency before the first sale. Out-of-state sellers must register once sales into Colorado pass $100,000, measured over the previous or current calendar year. As of October 2026.
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Sales tax in Colorado, step by step
Each rule comes from the state's own page, linked in the table below.
- 1
Selling in the state? Register first
Before your first saleA store, office, employees or inventory in Colorado (including inventory in a marketplace warehouse) means you register before you sell. Register with the Colorado Tax, which lists any registration fee or security deposit it requires.
- 2
Selling from out of state? Watch the threshold
Economic nexusYou must register once sales into Colorado pass $100,000 in the previous or current calendar year. What counts: retail sales into Colorado (marketplace-facilitated sales excluded). State-collected local sales taxes are included once registered; home-rule cities may have separate rules.
- 3
Count marketplace sales the state's way
Amazon, Etsy, eBayColorado does not count sales made through a marketplace toward the threshold. The marketplace usually collects the tax on those sales, but you may still need to register for your own website's sales.
- 4
Collect the right rate and file every period
Where people get stuckThe rate is the state rate plus any local rate where the buyer receives the goods. When you register, the Colorado Tax assigns how often you file; file every period it assigns.
- 5
Selling into other states too?
Free toolSelling into other states is a separate question: each one has its own threshold. Our free Nexus Detective checks your sales against all of them.
Colorado sales tax rules at a glance
| Rule | Colorado |
|---|---|
| Remote-seller sales threshold | $100,000 |
| Transaction test | since |
| Measured over | previous or current calendar year |
| What counts | retail sales into Colorado (marketplace-facilitated sales excluded) |
| Marketplace sales count? | No |
| Streamlined Sales Tax member | No |
| Source | Colorado Department of Revenue, checked |
From the state's own page, linked above. Rates and thresholds change; the state's page wins if it differs.
We do not register for sales tax or file returns. The registration is a form you can file yourself; our sales tax registration guide walks through it, and a CPA can take over the filing.
Frequently asked questions
Do I need a sales tax permit in Colorado?
Yes. Businesses making taxable sales in Colorado need a permit from Colorado's tax agency before the first sale. Out-of-state sellers must register once sales into Colorado pass $100,000, measured over the previous or current calendar year.
Does Colorado charge for a sales tax permit?
Some states charge nothing and some charge a small fee or ask for a security deposit. The Colorado Tax site lists Colorado's current requirement.
Do I need a permit in Colorado if I only sell online?
Yes once your sales into Colorado pass the threshold above, or right away if you store inventory or have staff there.
Does forming an LLC register me for sales tax?
No. The LLC filing and the sales tax registration are separate. You register with the state tax agency after the LLC exists, using its EIN.
Does Vermilion Vitez file sales tax returns?
No. We form the LLC and keep it in good standing; sales tax registration and returns are done with the state or a CPA.
More Colorado business guides
Nearby states
Free tool
See every state where you owe
Enter your sales by state and the Nexus Detective shows which thresholds you have passed, with each state's own link.
Rather talk first? Call Ray or Vinny at (954) 470-8356.