Colorado Car Sales Tax Calculator – Fast, Free & Accurate

Why Car Sales Tax in Colorado Matters

When you shop for a new or used car, it’s easy to focus only on the vehicle price. But in Colorado, sales tax can add 7–9% (or more) depending on your city or county.

For example:

• Buying a $35,000 car in Denver could add over $3,000 in tax.
• In Lakewood, the same car would come with closer to $1,600 in tax, because the local tax rate is lower.

That’s a big difference—and it’s why checking tax before you buy is smart.

How Colorado Car Sales Tax Is Calculated

Colorado’s car sales tax isn’t flat statewide. Instead, it combines:

• State sales tax
• County or city sales tax

Here’s the formula in plain English:

(Total Vehicle Price – Trade-in Value) × Local Sales Tax Rate = Estimated Sales Tax

A few key points:

• Trade-in credit applies: Colorado subtracts your trade-in value before applying tax.
• Location matters: The tax rate depends on where you register the car, not where you buy it.
• No double tax: You only pay tax on the final taxable amount, not on add-ons like trade-in deductions.

Using the Colorado Car Sales Tax Calculator

Our calculator makes this process simple. Here’s how to use it:

1. Enter your vehicle price – Example: $35,000.
2. Enter your trade-in value – Example: $8,000.
3. Choose your city or county – Select Denver, Boulder, Aurora, or other options from the dropdown.
4. Click “Calculate Tax” – The calculator instantly shows your taxable amount, tax rate, and estimated tax owed.

Example Calculation:

• Vehicle Price: $35,000
• Trade-in Value: $8,000
• Location: Denver (8.81% tax rate)

Taxable Amount = $27,000
Sales Tax = $27,000 × 8.81% = $2,379.00

That’s your estimated tax before title, registration, or dealer fees.

Colorado Sales Tax Rates by City (Examples)

Here are some of the rates already built into the calculator:

• Denver – 8.81%
• Colorado Springs – 8.25%
• Aurora (Arapahoe Co.) – 8.00%
• Fort Collins – 7.85%
• Boulder – 8.995%
• Lakewood – 4.75%
• Pueblo – 7.75%
• Grand Junction – 8.50%

This shows how much your location can change the final cost.

Tips to Lower Your Colorado Car Sales Tax Bill

While you can’t avoid sales tax, here are a few smart strategies:

• Maximize trade-ins – The higher your trade-in, the lower your taxable amount.
• Shop location-smart – Registering in a city with a lower tax rate can sometimes save you money (check local rules first).
• Consider private sales – Private party transactions may involve different fees, though taxes still apply.