Colorado Sales Tax Guide for SaaS and E-Commerce Businesses 2025
Colorado imposes a base 2.9% statewide sales tax, and local jurisdictions (counties, cities, special districts) may add additional local sales taxes up to 8.3%. Colorado treats many digital goods (downloads, streaming, e-books) as taxable tangible personal property, but generally excludes SaaS (software as a service) and electronically delivered software.
This guide explains how SaaS companies and e-commerce sellers are taxed in Colorado, including nexus rules, marketplace facilitator obligations, filing deadlines, and exemptions.
Last updated: October 2025
Quick Reference: Colorado Sales & Use Tax 2025
| Topic | Details |
|---|---|
| State base sales tax rate | 2.9% (Colorado Sales Tax Guide) |
| Local rates | 0%–8.3% depending on jurisdiction |
| Economic nexus threshold | $100,000 in retail sales into Colorado (no transaction-count threshold) (Colorado DOR – Out-of-State Businesses) |
| Is SaaS taxable? | Generally no at state level; local jurisdictions may vary (Colorado DOR – Computer Software Guidance) |
| Registration portal | Colorado Revenue Online |
| Tax agency | Colorado Department of Revenue |
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SaaS & Digital Products in Colorado
Colorado generally does not tax SaaS, cloud-hosted services, or electronically delivered software because they are considered intangible. However, Colorado has home-rule municipalities, and local jurisdictions (such as Denver and Boulder) may impose their own rules.
- Not taxable: SaaS, cloud-hosted software, electronically downloaded software
- Taxable: Prewritten software delivered on a physical medium (CD, flash drive)
- Taxable: Digital goods such as e-books, music, movies, and streaming services
- Bundled sales: If SaaS is bundled with taxable products and not separately stated, the taxable portion may apply
Source: Colorado DOR – Computer Software Tax Guidance
E-Commerce & Tangible Goods in Colorado
| Category | Taxable? | Notes |
|---|---|---|
| Tangible goods | Yes | All physical goods shipped to customers are taxable unless exempt |
| SaaS / cloud software | No (generally) | Exempt at state level, but check local home-rule jurisdictions |
| Prewritten software | Yes | Taxable if sold on tangible medium |
| Digital goods/streaming | Yes | Downloads and streaming subscriptions are taxable |
| Services | Generally no | Most services exempt unless specifically taxable |
Colorado uses destination sourcing, meaning tax is based on the customer’s delivery address.
Source: Colorado Sales Tax Guide
Economic Nexus: Remote Seller Rules
Remote sellers must register and collect Colorado sales tax if, in the current or prior calendar year, they have:
- More than $100,000 in Colorado retail sales
The 200-transaction threshold was repealed. Threshold includes both taxable and exempt sales.
Source: Colorado DOR – Out-of-State Businesses
Marketplace Facilitator Rules
Marketplace facilitators must collect and remit Colorado sales tax if they meet the $100,000 threshold.
- Platforms such as Amazon, Walmart, and Etsy must collect once registered
- Marketplace sellers should keep documentation showing the facilitator is collecting on their behalf
Source: Colorado DOR – Marketplace Facilitators
Filing & Due Dates
- File via: Colorado Revenue Online
- Filing frequency: Monthly, quarterly, or annually depending on assigned schedule
- Due date: 20th of the month following the reporting period
- Local home-rule cities: May require separate registration and filings
Penalties & Compliance Notes
- Failure to file: Penalties and interest apply under Colorado law
- Bundled transactions: Bundling SaaS with taxable digital goods may make full charge taxable if not separated
- Local rules: Some home-rule municipalities have separate nexus and filing requirements
FAQs: Colorado Sales Tax for SaaS & E-Commerce
Is SaaS taxable in Colorado?
Generally no. SaaS and cloud-hosted software are not subject to state sales tax, though local municipalities may have separate rules.
Are digital goods like e-books and streaming taxable?
Yes. Downloads, streaming subscriptions, and other digital goods are taxable.
What is Colorado’s economic nexus threshold?
$100,000 in Colorado retail sales in the current or prior year.
Do marketplace facilitators have to collect?
Yes. Marketplaces such as Amazon and Etsy must collect once they exceed $100,000 in sales.
Does Colorado have local sales tax?
Yes. Local home-rule jurisdictions may set their own rules and filing requirements.
Official Colorado Resources
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