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Colorado car sales tax at a glance
| Colorado | |
|---|---|
| Tax | sales tax |
| State rate | 2.9% |
| Average with local taxes (2026 (Tax Foundation midyear, July 1)) | 7.89% |
| Counties and cities add tax | Yes |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on each monthly payment |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Colorado sales tax on a car
Multiply the taxable price by the rate. In Colorado the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 2.9% = $725 at the state rate, plus any county or city tax where you register the car.
2.9% state plus city, county and special district sales or use tax for where the buyer lives and registers (paid to the county clerk if the dealer is elsewhere); home-rule cities may collect their own. Non-optional dealer fees are taxable. Specific Ownership Tax is charged separately at registration.
Trade-ins
The fair market value of a trade-in that is subject to licensing and registration is excluded from the taxable purchase price (DR 0024N).
Leasing a car in Colorado
Tax on each monthly payment. Colorado: when the lessor collects tax on the lease payments, the dealer taxes only what is paid at signing and tax is charged on each payment; for leases under 36 months without Department permission, tax is instead collected on the full purchase price up front (DR 0024N). The lease calculator uses Colorado's method when you pick the state.
Dealer doc fees
No state cap found.