Short-Term Rental Tax in Colorado (CO)
The state-level tax rate on short-term rentals in Colorado is 2.9% , consisting of 2.9% sales tax and 0.0% lodging tax. Colorado applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Denver reaches 15.7%. STR operators must register with the state. Colorado charges a 2.9% state sales tax on short-term rentals but has no state lodging tax. However, counties and cities impose substantial lodging taxes that can push total rates very high, especially in resort towns. STR operators must register with the Colorado DOR.
Annual Tax Estimate for Colorado
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Denver).
| Nightly Rate | Gross Revenue | State Tax (2.9%) | Denver Tax (15.7%) |
|---|---|---|---|
| $100.00/night | $23,700 | $687 | $3,709 |
| $150.00/night | $35,550 | $1,031 | $5,564 |
| $200.00/night | $47,400 | $1,375 | $7,418 |
| $300.00/night | $71,100 | $2,062 | $11,127 |
| $500.00/night | $118,500 | $3,436 | $18,545 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Colorado
Local taxes significantly impact the total STR tax burden in Colorado. The table below shows combined state + local rates for 5 cities, sorted by total rate. The highest combined rate is 15.7% in Denver.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Denver | 12.8% | 15.7% | $31.30 | High | Denver 10.75% lodging tax + 2.0% TID. One of the highest combined rates. |
| Vail | 11.5% | 14.4% | $28.80 | High | Eagle County 2.0% + Vail 5.5% lodging + 4.0% local sales tax. STR license required. |
| Breckenridge | 10.9% | 13.8% | $27.55 | High | Summit County 3.375% + Breckenridge 5.5% lodging + 2% STR fee. STR license required. |
| Steamboat Springs | 10.3% | 13.2% | $26.30 | High | Routt County 3.0% + Steamboat 4.0% lodging + 3.25% local sales tax. |
| Colorado Springs | 5.6% | 8.5% | $17.00 | Moderate | El Paso County 1.0% + Colorado Springs 2.0% lodging + 2.6% city sales tax. |
How Colorado Compares to Other States
Below is a comparison of Colorado with five states that have similar state-level STR tax rates. This comparison helps illustrate where Colorado stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Colorado (CO) | 2.9% | 2.9% | 0.0% | Yes | Required |
| Montana (MT) | 4.0% | 0.0% | 4.0% | Yes | Required |
| New York (NY) | 4.0% | 4.0% | 0.0% | Yes | Required |
| Wyoming (WY) | 4.0% | 4.0% | 0.0% | Yes | Required |
| Missouri (MO) | 4.2% | 4.2% | 0.0% | Yes | Required |
| Oregon (OR) | 1.5% | 0.0% | 1.5% | Yes | Required |
Frequently Asked Questions About Colorado STR Taxes
What is the short-term rental tax rate in Colorado in 2026?
The state-level tax rate on short-term rentals in Colorado is 2.9%, consisting of 2.9% sales tax and 0.0% lodging tax. Local taxes can bring the total to 15.7% in cities like Denver. At $200/night with 65% occupancy, the state-level tax alone is approximately $1,375 per year.
Does Airbnb collect STR taxes in Colorado?
Yes. Airbnb, Vrbo collect state sales tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Colorado?
Yes. Colorado requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Colorado also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Denver, Colorado?
The total combined tax rate in Denver is 15.7%, which includes the 2.9% state rate plus 12.8% in local taxes. Denver 10.75% lodging tax + 2.0% TID. One of the highest combined rates. At $200/night with 65% occupancy, this amounts to approximately $7,418 per year in taxes.
How much will I owe in STR taxes in Colorado?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (2.9%), a property earning $200/night with 65% occupancy would owe approximately $1,375/year in state taxes alone. In Denver, the total tax at the same rate would be approximately $7,418/year. Use our STR tax calculator for a customized estimate.
Calculate Your Colorado STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Colorado. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.