Colorado Reverse Sales Tax Calculator
Colorado's 2.9% state sales tax is the second-lowest in the country — but that number is deceptive. The state constitution gives cities and counties wide latitude to add their own taxes, and many have done so aggressively. Denver's combined rate hits 8.81%, and the statewide average lands at 7.72%. If you're working with receipts from Colorado, the state rate alone will not get you the right answer.
The calculator defaults to Colorado's statewide average of 7.72%. For Denver specifically, use 8.81%. Colorado Springs runs around 8.2%, Aurora around 8.5%. If you have the receipt, the easiest approach is to enter the tax rate that appears on it rather than relying on an average.
Current Colorado Sales Tax Rates
| Component | Rate |
|---|---|
| State rate | 2.90% |
| Average local rate | 4.82% |
| Average combined rate | 7.72% |
| Location | Combined Rate |
|---|---|
| Denver | 8.81% |
| Colorado Springs | 8.20% |
| Aurora | 8.50% |
| Fort Collins | 7.55% |
What's Taxable in Colorado
Colorado's 2.9% state rate does not apply to groceries — unprepared food is exempt from the state sales tax. However, Denver and many other localities do impose a local sales tax on groceries. Prepared food (restaurant meals, hot bar items) is fully taxable. Prescription drugs are exempt statewide.
Worked Example
Purchase in Denver totaling $163.20 at 8.81%.
$163.20 ÷ 1.0881 = $149.99 (pre-tax price)
$163.20 − $149.99 = $13.21 (tax amount)
That's $13.21 in sales tax on a $149.99 purchase before tax. The main calculator handles this automatically — enter the total and rate and the breakdown appears instantly.
Frequently Asked Questions
Denver's combined rate is 8.81% — Colorado's 2.9% state rate plus 4.81% from Denver city, RTD, SCFD, and other local levies. Denver self-collects its own sales tax rather than routing through the state system, which means the rate and rules can differ slightly from state-administered areas.
Colorado's 2.9% state rate is the second-lowest in the US. But the state constitution gives municipalities broad authority to levy their own sales taxes, and they've used it heavily. Denver alone adds nearly 5 points on top of the state rate. The statewide average combined rate ends up at 7.72% — much higher than the state rate alone suggests.
Divide the total amount paid by (1 + the tax rate as a decimal). For Colorado's 7.72% rate: divide by 1.0772. The result is the pre-tax price. Subtract that from the total to get the tax amount. The calculator on this page does this automatically.
Colorado does not have a statewide sales tax holiday. Some local governments have run their own promotions, but there's no state-level exemption period.