Colorado Sales Tax on cars and trucks Colorado:


Taxation of car sales in CO How are vehicle sales taxed in Colorado?

Colorado Sales Tax on Car Purchases:

Vehicles purchases are some of the largest sales commonly made in Colorado, which means that they can lead to a hefty sales tax bill. This page covers the most important aspects of Colorado's sales tax with respects to vehicle purchases. For vehicles that are being rented or leased, see see taxation of leases and rentals.

Colorado collects a 2.9% state sales tax rate on the purchase of all vehicles. However, a county tax of up to 5% and a city or local tax of up to 8% can also be applicable in addition to the state sales tax. The maximum tax that can be owed is 525 dollars.

In addition to taxes, car purchases in Colorado may be subject to other fees like registration, title, and plate fees. You can find these fees further down on the page.

Do Colorado vehicle taxes apply to trade-ins and rebates?

How are trade-ins taxed?

Many dealerships allow you to trade-in your old car in exchange for a credit applied to the price of a new vehicle. For example, you could trade-in your old car and receive a $5,000 credit against the price of a $10,000 new vehicle, making your out-of-pocket cost only $5,000.

In Colorado, the taxable price of your new vehicle will be considered to be $5,000, as the value of your trade-in is not subject to sales tax. This means that you save the sales taxes you would otherwise have paid on the $5,000 value of your trade-in.

How are rebates and dealer incentives taxed?

Many dealers offer cash incentives or manufacturer rebates on the sticker price of a vehicle in order to encourage sales. For example, a $1,000 cash rebate may be offered on a $10,000 car, meaning that the out of pocket cost to the buyer is $9,000.

Colorado taxes vehicle purchases before rebates or incentives are applied to the price, which means that the buyer in this scenario will pay taxes on the vehicle as if it cost the full $10,000.

Other taxes and fees applicable to Colorado car purchases

In addition to state and local sales taxes, there are a number of additional taxes and fees Colorado car buyers may encounter. These fees are separate from the sales tax, and will likely be collected by the Colorado Department of Motor Vehicles and not the Colorado Department of Revenue.

Title Fee: $7.20
Registration Fee: Paid by the customer at DMV
Plate Transfer Fee: $25

Average DMV fees in Colorado on a new-car purchase add up to $5331, which includes the title, registration, and plate fees shown above.

Colorado Documentation Fees

Dealerships may also charge a documentation fee or "doc fee", which covers the costs incurred by the dealership preparing and filing the sales contract, sales tax documents, etc. These fees are separate from the taxes and DMV fees listed above.

The average doc fee in Colorado is $4901, and Colorado law does not limit the amount of doc fees a dealer can charge. Because these fees are set by the dealerships and not the government, they can vary dealership to dealership or even vehicle to vehicle.

1 - Average DMV and Documentation Fees for Colorado calculated by

Back to Colorado Top
** This Document Provided By SalesTaxHandbook **

Related pages

small business sales tax exemptionwisconsin sales tax ratesonline taxes york county scvat tax refund germanycalifornia dmv calculatoriowa tax refund calculatorvirginia cigarette pricesherman nebraskasales tax everett wastokes county taxdelaware cigaretteszip code for old town mainestockton ks zip codeputnam county sales tax ratezip code la canada calouisana department of revenuenevada car taxwelches oregon zip codedenton county gis txzip code for williston north dakotasales tax in orlando flblanchard north dakotalincoln ne tax ratezip code for box elder sdmontgomery tax ratezip code fort hoodgrand coteau la zip codetn sales tax calculatoris shipping and handling taxablezip code hereford azhopkins south carolina zip codefulton county ga sales taxmadison sd zip codedmv battle creek mianderson glass lorena txoklahoma counties and citiesmirando city texasmoscow mills zip codesales tax in columbus ohwhat is floridas sales taxwaterloo new york zip codevermont vehicle registration feeswv state tax ratewest hills ziptax rate sacramentobladen county taxwest harrison ny zipmontgomery county md tax rateernst and young azerbaijansales tax rate in dallas txtexas direct pay certificatesan bruno tax ratefryeburg maine zip codedarien georgia zip codetax calculator seattle washingtonjefferson county alabama appraisal districtwww.dmv.nv.govhenryville indiana zip codefederal excise tax on cigarettesurania louisianapratt kansas zip codesales tax utahspringville al zip codevulcan information portalnew jersey vehicle registration feesalma arkansas zip codesales tax audit californiaflorida excise taxdr0100dimock south dakotacleveland missouri zip codeburton ohio zip codevat rate in finlandmaine state revenue sales taxmyrtle beach zip codes mapaurora sales tax