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Car sales tax · Colorado

Colorado car sales tax

Colorado car sales tax is the 2.9% state rate plus county, city and special district taxes such as RTD, on the price minus the trade-in's fair market value. Manufacturer rebates are still taxed. A $38,000 car with a $10,000 trade at a 5.1% local rate owes $2,240.00.

Car Cost Calculator editorial teamUpdated 3 sources

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Colorado car sales tax calculator

State rules in force November 2026

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Colorado: sales taxEstimate

Tax due$2,240.005.89% of the price
Price after trade-in, with tax and fees$28,740.00before title and registration
Price$38,000.00
Rebate (still taxed)−$1,500.00
Trade-in (credited)−$10,000.00
Taxable amount$28,000.00
State + local sales/use tax (paid at dealer or county clerk) (2.9% of $28,000)$812.00
Local tax (5.1%)$1,428.00
Total tax$2,240.00

The trade-in credit saves $800.00 of tax.

How it is calculated. Tax = (price − trade-in fair market value) × (2.9% + local rates). Manufacturer rebates do not reduce the taxable price.

Colorado sales tax for cars: state and local parts

Colorado's state sales tax is 2.9%.[2] On top of it come state-administered local taxes (county, city and special districts such as the Regional Transportation District and the Scientific and Cultural Facilities District) and, in home-rule cities, the city's own tax; the Department of Revenue lists all rates in publication DR 1002.[3] For a vehicle, the sale generally takes place where the buyer takes possession.[1]

Colorado car sales tax at different local rates (our arithmetic)
CaseTaxShare of price
$38,000 car, $10,000 trade, $1,500 rebate, 5.1% local$2,240.005.89%
$38,000 car, no trade, 2% local$1,862.004.90%
$38,000 car, no trade, 7% local$3,762.009.90%
$15,000 used car, private sale, 4% local$1,035.006.90%

Trade-ins, rebates and private sales

  • Trade-in: the fair market value of the trade-in is excluded from the taxable price.[1]
  • Rebates: the taxable price is not reduced by a manufacturer rebate.[1]
  • Private sales: the seller does not collect tax; the buyer pays it to the county clerk when registering.[1]
  • Tax paid elsewhere is credited against the Colorado use tax due.[1]

Which local taxes apply depends on the addressThe Department of Revenue's example: a buyer from Erie pays Colorado, Erie, Boulder County, RTD and SCFD taxes at the dealer, while a buyer from Berthoud pays only the state tax there and the rest at registration.

Colorado also charges a yearly specific ownership tax at registration; see Colorado auto registration fees.

Compare states on the car sales tax calculator, include the tax in a budget with the car affordability calculator, or see the yearly total on the cost of owning a car calculator.

Frequently asked questions

What is the sales tax on a car in Colorado?

2.9% state tax plus county, city and district taxes, which depend on the address.

Does Colorado tax manufacturer rebates on cars?

Yes. The taxable price is not reduced by a manufacturer rebate.

Who collects sales tax on a private car sale in Colorado?

The county clerk, when the buyer registers the vehicle.

Sources

  1. Sales & Use Tax Topics: Motor Vehicle Sales · Colorado Department of Revenue, accessed November 14, 2026
  2. Colorado Sales Tax Guide · Colorado Department of Revenue, accessed November 14, 2026
  3. Colorado Sales/Use Tax Rates (DR 1002) · Colorado Department of Revenue, current edition