Denver, Colorado Sales Tax Guide for SaaS and E-Commerce Businesses 2025
Denver imposes a 5.15% city sales and use tax. When combined with the Colorado state rate and regional district taxes, the total can reach 9.15%.
This guide explains Denver’s home-rule tax system, when SaaS and e-commerce sellers must register, how nexus works at both the city and state level, and how to file directly through Denver’s separate online portal.
Last updated: October 2025
Step-by-Step: Should You Register and Collect Denver Sales Tax?
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Check nexus
- You have nexus in Denver if you have employees, inventory, or offices in the city, or if you sell or license SaaS or digital products to customers who use them in Denver.
- Denver recognizes both physical and economic nexus.
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Register with Denver
- Registration with the Colorado Department of Revenue does not cover Denver.
- Apply for a separate sales and use tax license directly through the city’s Business Tax Division or via the online filing system at Denver eBiz Tax Portal.
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Begin collecting
- Charge the 5.15% Denver city rate (or combined rate if applicable) on taxable transactions. SaaS subscriptions and software licenses used in Denver are taxable.
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File and remit
- File and pay through the Denver eBiz Tax Portal.
- The city does not participate in the Colorado SUTS or DOR systems.
Get guidance tailored to your business
Quick Reference: Denver Sales Tax (2025)
| Topic | Details |
|---|---|
| City base rate | 5.15% (City and County of Denver) |
| Typical combined rate | Up to 9.15% including state and district components |
| Economic nexus threshold (state) | $100,000 in Colorado retail sales (state level) |
| Nexus for Denver | Denver requires registration for any seller with physical or economic presence making taxable sales or licensing software used in Denver |
| SaaS / Digital products | Taxable in Denver even though Colorado state generally exempts SaaS |
| Registration portal | Denver eBiz Tax Portal |
| Tax agency | City and County of Denver Department of Finance, Treasury Division |
Home-Rule System Overview
Denver is one of over 70 home-rule cities in Colorado.
Home-rule cities administer and collect their own local sales and use taxes. Denver’s rules, definitions, and filing system operate separately from the Colorado Department of Revenue.
This means SaaS or e-commerce businesses that meet nexus in Denver must maintain a separate account, registration, and filing schedule for the city.
SaaS and Software Taxability in Denver
Denver’s Tax Guide Topic No. 18 defines software and SaaS as taxable. The city treats software licenses, subscriptions, and cloud-based applications as taxable sales or uses when the customer is located in Denver.
From Denver’s Tax Guide Topic 18 – Software:
Sales or use tax is imposed on the purchase price paid for software programs, software as a service, software license fees, and similar charges, regardless of whether the software is delivered via download, accessed remotely, or otherwise.
(Denver Tax Guide PDF)
What this means for SaaS sellers:
- SaaS subscriptions used by Denver customers are taxable.
- The location of use determines taxability, not the location of the server.
- Programming, setup, or consulting services are non-taxable if separately stated.
- Bundled charges that mix software and services are fully taxable.
What’s Taxable in Denver?
| Category | Taxable? | Notes |
|---|---|---|
| Tangible goods | Yes | Retail sales of goods in Denver are taxable at 5.15%. |
| SaaS and software access | Yes | Considered taxable software when used or consumed in Denver. |
| Professional services | Varies | Non-taxable if separately stated and primarily service-based. |
| Shipping and delivery | Yes | Taxable when tied to taxable tangible property. |
| Digital goods | Varies | May be taxable if considered software or licensed digital access. |
Filing and Due Dates
- Returns are typically due monthly by the 20th of the following month.
- Smaller sellers may be assigned quarterly or annual filing.
- All filings and payments must be made through the Denver eBiz Tax Portal.
- The city does not participate in Colorado’s SUTS or DOR filing systems.
FAQs: Denver Sales Tax
Is SaaS taxable in Denver?
- Yes. SaaS and software access used in Denver are taxable even though the State of Colorado exempts SaaS at the state level.
Does Denver have economic nexus or only physical nexus?
- Both. Denver applies its tax to sellers with either physical presence or economic activity generating taxable sales or SaaS usage in Denver.
Do I need to register with Denver if I already collect Colorado sales tax?
- Yes. Denver requires a separate license and filings through its own portal.
Where do I register?
- Through the City and County of Denver’s Business Tax Division or the Denver eBiz Tax Portal.
What rate should I charge for SaaS sold to Denver customers?
- The Denver city rate is 5.15%. Combined city, state, and district rates often total around 9.15%.
Official Denver Resources
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