Last checked Nov 10, 2026
Buying a car in Colorado
The tax you will pay, whether your trade-in lowers it, what the dealer may charge for paperwork, and where to title and register. Taken from official Colorado sources.
- State tax on vehicles
- 2.9%
- Trade-in lowers tax
- Yes
- Doc fee limit
- Check with the state
- Deadline to title or register
- 60 days
details below
Sales tax on a car in Colorado
Colorado charges a state sales tax of 2.9% on vehicle purchases.
City, county, and special district sales taxes also apply, and which ones apply depends on where the vehicle will be registered.
When the seller is not required to collect sales tax, such as in a private sale, the buyer pays the state and local taxes to the county clerk at registration.
Does a trade-in lower the tax?
The fair market value of a trade-in is excluded from the taxable price when the traded vehicle is subject to licensing, registration, or certification.
Example, state tax only. On a $30,000 car with a $10,000 trade-in, the taxable amount is $20,000, so the state tax is about $580. Without the trade-in it would be $870. Local taxes and fees are extra.
Dealer doc fees in Colorado
We could not confirm from an official source whether the state limits the documentation fee. Ask the dealer for the fee in writing and compare it with other dealers.
The documentation fee is taxed along with the vehicle.
Whatever the rule, the fee is part of your out-the-door price. Ask for it in the written quote and negotiate the total, not the line. See dealer fees explained.
Title and registration
Titles and registrations are handled by the Colorado Division of Motor Vehicles. A vehicle must be registered within 60 days of purchase. Registration is handled by the county motor vehicle office.
Also worth knowing
- Late registration results in a fee of $25 per month, up to a maximum of $100.
- Emissions testing is required for vehicles more than seven model years old that are registered in the designated emissions counties.
- Colorado charges an annual Specific Ownership Tax at registration, which works like a property tax on the vehicle.
- Mandatory dealer fees, such as documentation fees, are included in the taxable purchase price.
Sources
- Colorado Department of Revenue: Sales and Use Tax Topics, Motor Vehicle Sales (tax.colorado.gov)
- Colorado Department of Revenue: Sales Tax Guide (tax.colorado.gov)
- Colorado DMV: Vehicle Registration, General Information (dmv.colorado.gov)
- Colorado DMV: Vehicle Taxes and Fees (dmv.colorado.gov)
Last checked Nov 10, 2026; next review by Feb 10, 2027. This page explains how the rules generally work and is not tax or legal advice. Rules change, so confirm with the state. Report an error.
Concierge
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Tell us the car you want. A person finds it, checks it, negotiates the out-the-door price in writing, and lines up the paperwork. You approve every step.