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Colorado Local Sales and Use Tax Rate Changes Effective January 1, 2026: Key Updates and Impacts

  • Colorado’s local sales and use tax rates are changing effective January 1, 2026, impacting both in-state and out-of-state sellers due to destination-based sourcing.
  • Updates include rate increases, new taxing jurisdictions, administrative changes, and service fee updates across cities, counties, and special districts.
  • Notable city changes: Aspen (2.70%), Fort Morgan (5.00%), Gunnison (4.00%, state-collected), Merino (2.00%, new), Pagosa Springs (1.00%, new), Wellington (3.00%), Yuma (3.75%).
  • County changes: Arapahoe (0.25%), Boulder (1.335%), La Plata (3.00%), Larimer (1.05%), Pueblo (1.00%, exemption updates).
  • Special districts and self-collected jurisdictions also see new or increased taxes, with rates varying by location; sellers must update systems to avoid compliance issues.

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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