DR 1002 Colorado Sales Use Tax Rates If you are using a screen reader or other assistive technology,-2025

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The Colorado use tax rate is 2.9%, the same as the sales tax rate in Colorado, and use tax is calculated in the same manner as sales tax.
Products that are Normally Tax Exempt in Non-Digital Format On the other hand, non-legal publication newspapers, books, music, movies, etc. in digital form are taxable in Colorado in both physical and digital format. The law is similar in Minnesota.
State Sales Tax Exempt Products Services Food, including food sold through vending machines. Residential Energy Usage(opens in new window) - all gas, electricity, coal, wood and fuel oil. Medical Equipment Medicine. Coins and Precious Metal Bullion. Farm Equipment. Seeds, Plants and Trees. Pesticides.
There are two types of use taxes Consumer Use Tax and Vendor/Retailer Use Tax. Consumer Use Tax is a tax on the purchaser and is self-assessed by the purchaser on taxable items purchased where the vendor did not collect either a sales or vendor use tax.
What Is the Sales Tax on Digital Goods by State? StateAre Digital Goods Taxable?Source Montana No Montana Department of Revenue Nebraska Yes Nebraska Department of Revenue Nevada No Nevada Department of Taxation New Hampshire No New Hampshire Department of Revenue Administration47 more rows
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Colorado state sales tax is imposed at a rate of 2.9%. Any sale made in Colorado may also be subject to state-administered local sales taxes. A sale may also be subject to self-collected home-rule city sales taxes, which are not administered by the Department.
The requirement to collect tax applies regardless of whether the sale is made at a retailers location in Colorado or delivered to the customer at a location in Colorado. A retailer may be required to collect tax even if it has no physical presence in Colorado.
Some states have implemented comprehensive sales tax laws that apply to all types of digital goods. In these states, consumers can expect to pay sales tax on digital products just as they would on physical goods.

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