If you purchased tangible personal property to use or consume in Colorado and did not pay sales tax at the time of purchase, you may owe Use Tax to the State of Colorado.
This applies to purchases made through:
- Internet retailers
- Mail-order catalogs
- Out-of-state vendors
These types of transactions often do not collect sales tax in Colorado, making you responsible for reporting and paying use tax directly.
What is the Use Tax Rate in Colorado?
The Colorado consumer use tax rate is 2.9%, which matches the state of Colorado sales and use tax rate1. However, many Colorado cities, counties, and special districts impose their own additional use tax rates.
To determine your total use tax rate based on your residence, use the Colorado Department of Revenue’s Geographic Information System (GIS) tool:
👉 Look Up Sales & Use Tax Rates
You can also refer to the official DR 1002 Sales/Use Tax Rates publication for a full list of local rates:
📄 DR 1002 PDF
Where do I enter Colorado Use Tax in my account?
To report and pay sales and use tax in Colorado, follow these steps in your tax software:
- Go to the State Section
- Select Tax
- Choose Use Tax
This is where you can enter the amount of Colorado use tax you owe based on your untaxed purchases.