Key figures
Colorado receivables
2026, with sources
The state and the home-rule cities
Colorado’s state sales tax is 2.9%, collected by the Department of Revenue along with the counties, special districts and the cities that let the state collect for them. Home-rule cities that collect their own tax — Denver, Boulder, Colorado Springs, Aurora and dozens more — set their own rates, their own taxable base and their own licensing.
A remote seller must register with the state once its Colorado sales pass $100,000 in the current or prior calendar year. The Sales and Use Tax System (SUTS) is the state portal for licensing with and filing to the self-collecting cities that participate; the few that don’t take returns directly.
SaaS
The state doesn’t tax SaaS. Several home-rule cities do, under their own definitions, Denver among them. That makes Colorado a state where taxability depends on the customer’s city, and where a sales tax engine has to know home-rule boundaries, not just ZIP codes.
Customer credit balances left untouched become unclaimed property, reported to the State Treasurer by November 1.
The federal baseline
This page covers what Colorado adds. The federal rules underneath it apply here too.
Common questions
Is SaaS taxable in Colorado?
Not at the state level. But Colorado’s home-rule cities write their own sales tax codes, and some, Denver among them, tax SaaS. A SaaS company with Colorado customers can owe city tax where it owes no state tax.
What is SUTS?
The Sales and Use Tax System, run by the Department of Revenue, lets a business license with and file returns for participating self-collecting home-rule cities in one place. Participation is voluntary for the cities, so a few still require direct filing.
Receivables next door
- WYWyoming receivablesWyoming doesn’t tax SaaS, PaaS or IaaS but does tax prewritten software however delivered; remote sellers license once gross Wyoming sales exceed $100,000.
- NENebraska receivablesNebraska keeps both tests — $100,000 or 200 transactions — and generally leaves access-only SaaS untaxed. The state rate is 5.5% plus up to 2% local.
- KSKansas receivablesKansas’s nexus threshold is $100,000 of all sales to Kansas customers, exempt ones included. Remotely accessed SaaS is generally not taxable; the state rate is 6.5% plus local.
- OKOklahoma receivablesOklahoma’s nexus threshold counts only taxable sales — $100,000 — and SaaS is generally not taxable. The state rate is 4.5% plus county and city tax.
- NMNew Mexico receivablesNew Mexico taxes gross receipts, not sales: 4.875% state plus local, on services and software licenses, sourced to the customer. Remote sellers are in at $100,000.
- AZArizona receivablesArizona’s TPT is a tax on the seller, at 5.6% plus city rates. SaaS is taxable as a personal property rental, but the $100,000 economic threshold counts only retail sales.
- UTUtah receivablesUtah taxes SaaS as prewritten software used in Utah, at 4.85% plus local rates. Remote sellers register at $100,000 of Utah revenue; the transaction count is gone.
Founder guides on this
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
- StripeHow to reconcile Stripe payouts to your booksA Stripe payout is charges less fees, refunds and disputes, batched across days. How to book it gross, tie it to the bank, and keep revenue right.
More of the Colorado guide
- AccountingAccounting and state tax in ColoradoCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in ColoradoPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in ColoradoWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in ColoradoRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in ColoradoCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.