Question

How much is the car sales tax in Colorado?

All car sales in Colorado are subject to a 2.9% state tax. Still, the overall Colorado vehicle sales tax you pay varies depending on your city and county of residence, as local taxes get added to the state tax.

The state’s average total car sales tax is around 7.86%. Apart from the taxes, you must also pay the expenses for the title, registration, and plate fees.

How is sales tax calculated on a car in Colorado?

You can calculate the sales tax rate depending on the vehicle’s net purchase price and other applicable taxes.

• First, find the taxable price. You can calculate that by subtracting the trade-in value (if any) from the full purchase price.
• Find the applicable tax rate. This includes the Colorado state tax of 2.9%, city and county taxes, and special district taxes like the Regional Transportation District tax or Scientific and Cultural Facilities District tax. The rates become applicable based on where you live and not from where you bought the car.
• Then, multiply the taxable price by the total tax rate. This is the car sales tax calculator.

Does trading in a car reduce sales tax in Colorado?

The state sales tax rate does not apply to trade-in values. When buying a car, most dealerships will let you trade in your current car for credit toward purchasing your new one. For instance, you’re buying a car with $25,000 in Grand Junction and trading your current car for $4,000. Then, you’ll only have to pay 8.66% total state and local sales tax in Grand Junction on your $21,000 transaction.

How much is the sales tax on a used car in Colorado?

The Colorado sales tax on used cars​ is the statewide rate of 2.9% plus your local or county tax rate.

Does Colorado collect sales tax on out-of-state car purchases?

Cars brought outside of the state are exempt from paying the sales tax. Anyone, including individuals and businesses, who buys a car outside of the state and registers it in Colorado must pay Colorado use tax and any applicable local use tax during registration.

Do you have to pay sales tax on a gifted car in Colorado?

No, you don’t have to pay tax on a car you received as a gift or prize.

What city has the highest sales tax in Colorado?

With a total sales tax rate of 11.2%, Winter Park is the city with the highest sales tax in Colorado.

What county has the highest sales tax in Colorado?

Grand County is the county with the highest sales tax in Colorado.