Colorado Car Sales Tax Calculator
Estimate the sales tax on a vehicle purchase. In Colorado, tax is calculated on the net price after deducting your trade-in value.
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:
- Enter your vehicle price – Example: $35,000.
- Enter your trade-in value – Example: $8,000.
- Choose your city or county – Select Denver, Boulder, Aurora, or other options from the dropdown.
- 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.
Calculate Car Sales Tax by State with Our Free Calculator
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