Colorado Ends State Sales Tax Service Fee for Sellers Starting January 2026

• Colorado will eliminate the state-level sales tax service fee starting January 1, 2026.
• Sellers must remit 100% of Colorado state sales tax collected; they can no longer keep 2.22% as a service fee.
• This change only affects the state portion of sales tax; local service fees remain unchanged.
• Sellers’ net retention will decrease, but customer-facing tax rates and calculation methods stay the same.
• Affects all sellers collecting Colorado state sales tax, including remote sellers and finance teams.

Source: taxcloud.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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