Colorado charges sales and use tax of 2.9% at the state level, and local jurisdictions add their own, which brings a typical vehicle to about 7.4%. A trade-in does reduce the taxable price, which is real money on the deal.
State rate 2.9% plus the state-collected and home-rule local taxes of the address where the vehicle will be registered (city, county, RTD/CD and other special districts). Denver residents pay 8.81% combined (local 5.91%); many Front Range addresses fall between 7.5% and 8.9%. Resort towns exceed 11% combined, so the local share can reach about 8.4%.
Colorado taxes the full purchase price including manufacturer rebates and incentives (DOR Sales & Use Tax Topics: Motor Vehicle Sales); only the trade-in is excluded.
Dealers collect only the local taxes common to both the dealer's location and the buyer's registration address; the county collects the remaining use tax at registration, so the buyer ends up at the registration-address rate.
| Fee | Amount |
|---|---|
| Title | $7.20 |
| Registration (mixed-based) | ~$800 |
| Road Safety Surcharge (FASTER) (annual, 2,001-5,000 lb vehicles (approximate; see DMV table)) | $19.00 |
Lease tax applies to each monthly payment rather than to the full price of the car, so you pay it as you go.
Pick your city for the exact combined rate where you register, plus what title and registration run there.
Colorado charges 2.9% at the state level and local jurisdictions add more, so a typical combined rate on a vehicle is about 7.4% and can reach 11.3% at the high end. The rate is set by the address you register the car to, so pick your city above for the exact figure.
Fair market value of a vehicle traded in on the purchase of another motor vehicle is excluded from the taxable price (C.R.S. 39-26-104(1)(a)).
Title is $7.20. First-year cost for a $40,000, 3,500 lb car is dominated by Specific Ownership Tax: taxable value = 85% of MSRP ($34,000) x 2.10% in year 1 = $714. Add the weight-based registration fee, Road Safety Surcharge ($19.xx for 2,001-5,000 lbs through Aug 2027), Bridge Safety Surcharge, clerk hire fee, emissions and plate fees (roughly $80-100 combined). SOT falls to 1.5% in year 2, 1.2% year 3, 0.9% year 4, 0.45% years 5-9, then $3.
No. Colorado sets no statutory cap, and dealers typically charge around $699. No statutory cap; Colorado dealers commonly charge $500-$700 (CarEdge 2026, secondary).
Tax applies to each monthly payment rather than the whole price of the car, so the tax is spread across the lease.
Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.