Colorado Statewide Rule
Colorado Statewide Sales and Lodging Tax on Short-Term Rentals
Key Facts
- State sales tax
- 2.9 percent
- Statute
- CRS 39-26-102, 39-26-104
- Marketplace collection
- Required statewide
- License
- CDOR sales tax license
Summary
Colorado requires short-term rental operators to collect 2.9 percent state sales tax plus any local lodging taxes, with marketplace facilitators like Airbnb collecting on behalf of hosts under CRS 39-26-102.
(1.5) (a) With respect to sales of tangible personal property, commodities, or services made by marketplace sellers in or through a marketplace facilitator's marketplace, a marketplace facilitator has all of the liabilities, obligations, and rights of a retailer or vendor under subsection (1) of this section and this article 26 whether or not the marketplace seller, because the marketplace seller is a multichannel seller: (I) Has or is required to have a license under section 39-26-103; or (II) Would have been required to collect and remit tax under this article 26 had the sale not been made in or through the marketplace.
Full Breakdown
Under CRS 39-26-102(11) and CRS 39-26-104, short-term lodging of less than 30 days is subject to the 2.9 percent state sales tax. Marketplace facilitator law CRS 39-26-102(5.9) requires platforms like Airbnb and Vrbo to collect and remit state sales tax on behalf of hosts. Operators must still register with the Colorado Department of Revenue and obtain a sales tax license. Local jurisdictions may layer additional lodging or accommodations taxes on top, often bringing combined rates to 10 to 15 percent.
Violations & Penalties
Failure to remit state sales tax may incur penalties up to 30 percent of tax due plus monthly interest under CRS 39-21-110.
Frequently Asked Questions
Do Colorado Airbnb hosts need a state sales tax license?
Can Colorado cities add their own STR taxes?
Sources
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