Colorado Amazon Sales Tax
Colorado enforces marketplace facilitator law since October 2019. Amazon collects all Colorado sales tax. State rate is low (2.9%) but locals add a lot.
Overview
Colorado's marketplace facilitator law took effect October 1, 2019. Colorado has one of the lowest state sales tax base rates at 2.9%, but local jurisdictions add substantial rates on top — combined rates can reach 11.2% in some areas. Colorado is also a "home rule" state where many cities run their own independent tax administration, which historically made sales tax compliance especially complex.
The marketplace facilitator law simplified this enormously for online sellers. Amazon now handles all Colorado collection, including the home-rule city portions, automatically. As an FBA seller you don't need to register or file in Colorado.
For direct-to-consumer sellers, Colorado remains one of the more complex states because home-rule cities require separate registration and filing for non-marketplace sales above local thresholds.
What FBA sellers still need to know
No state registration for Amazon-only sellers. Direct sellers may need to register with state AND multiple home-rule cities.
This content is educational and not legal or tax advice. Sales tax law changes frequently and is jurisdiction-specific. Always verify with a qualified tax professional and the state revenue department before making compliance decisions.
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