If you sell products to customers in Colorado, you may be required to collect and remit sales tax even if your business is located outside the state. Colorado’s economic nexus threshold is more than $100,000 in qualifying retail sales into the state during the previous calendar year. There is no separate transaction-count threshold.
Colorado can be more complicated than many states because of its local home-rule jurisdictions and destination-based sales tax system.
Colorado Economic Nexus at a Glance
| Rule | Colorado Rule |
| Economic nexus threshold | More than $100,000 |
| Measurement period | Previous calendar year |
| Transaction threshold | None |
| Marketplace sales included in seller’s threshold? | Generally no |
| Marketplace facilitator rules | Yes |
| Tax authority | Colorado Department of Revenue |
What Is Economic Nexus in Colorado?
Economic nexus allows Colorado to require an out-of-state business to collect and remit sales tax based on its level of sales into the state, even if it doesn’t have a physical presence there.
For remote sellers, the key figure to monitor is $100,000 in qualifying Colorado retail sales during the previous calendar year.
Businesses below the economic threshold should still consider whether they have physical nexus in Colorado.
What Is the Economic Nexus Threshold in Colorado?
A remote seller generally establishes economic nexus if its retail sales into Colorado exceed $100,000 during the previous calendar year. Colorado does not have a separate transaction-count threshold.
For example, an ecommerce business with $125,000 of qualifying direct Colorado sales during the previous year would generally have economic nexus and should review its registration requirements.
What Sales Count Toward Colorado’s $100,000 Threshold?
Colorado’s threshold is based on qualifying retail sales of tangible personal property, commodities and services into the state.
For ecommerce businesses, this can include direct sales made through:
- Shopify
- WooCommerce
- Your own ecommerce website
- Other direct sales channels
Businesses should monitor their Colorado sales throughout the year so they know whether they will have an obligation for the following calendar year.
Do Amazon Sales Count Toward Colorado Economic Nexus?
Generally, marketplace sales are not included when determining whether an individual marketplace seller has exceeded Colorado’s $100,000 economic nexus threshold. Marketplace facilitators such as Amazon, Etsy, eBay and Walmart are generally responsible for collecting and remitting Colorado sales tax on the transactions they facilitate.
For example, if you have $150,000 of Amazon sales but only $60,000 of direct Shopify sales into Colorado, you would generally remain below the economic nexus threshold based on your direct sales. However, marketplace sellers should separately consider whether they have physical nexus in Colorado.
Can You Have Colorado Nexus Below $100,000?
Yes, physical presence can create Colorado sales tax nexus regardless of whether you reach the economic nexus threshold.
Physical nexus can potentially include:
- An office or business location
- Employees working in Colorado
- Inventory stored in the state
- A warehouse or fulfilment location
- Certain other business activities in Colorado
This means the $100,000 threshold shouldn’t be the only factor considered when determining your Colorado sales tax obligations.
How Do Colorado Home-Rule Cities Affect Sales Tax?
Colorado has one of the more complicated local sales tax systems in the US. In addition to the 2.9% state sales tax, counties, cities and special districts can impose additional taxes. Some home-rule municipalities administer their own local sales taxes and can have different tax rules and requirements.
Colorado’s Sales and Use Tax System (SUTS) helps simplify compliance by providing a centralized system that businesses can use for participating jurisdictions.
However, businesses selling throughout Colorado should still check whether they have additional obligations in self-collecting home-rule jurisdictions.
What Is the Colorado Retail Delivery Fee?
Colorado also imposes a Retail Delivery Fee on certain retail deliveries made by motor vehicle to a location in Colorado. The fee generally applies when the delivery contains at least one item of tangible personal property that is subject to state sales or use tax.
The Retail Delivery Fee is separate from sales tax and is adjusted periodically, so ecommerce sellers making deliveries into Colorado should make sure their systems are configured correctly.
What Should You Do After Crossing the Colorado Nexus Threshold?
If your qualifying Colorado sales exceed $100,000:
- Confirm that you exceeded the threshold during the previous calendar year.
- Separate marketplace and direct sales.
- Check whether you already have physical nexus.
- Register for a Colorado sales tax account.
- Review whether you have obligations in home-rule jurisdictions.
- Configure your ecommerce platform to collect the appropriate tax.
- Begin filing and remitting as required.
Because of Colorado’s local tax structure, sellers should pay particular attention to where their orders are delivered.
Colorado Economic Nexus Examples
Shopify seller:
A remote business has $125,000 of qualifying direct Shopify sales into Colorado during the previous calendar year. It exceeds the economic nexus threshold and should review its registration requirements.
Amazon-only seller:
A business has $200,000 of Colorado sales entirely through a qualifying marketplace facilitator. The marketplace generally handles sales tax collection, and those facilitated sales generally aren’t included in the individual seller’s economic nexus calculation.
Amazon and Shopify seller:
A business has $150,000 of Amazon sales and $110,000 of direct Shopify sales into Colorado. Its direct sales exceed $100,000, meaning the seller generally has economic nexus for the following year.
What If You Should Have Registered Previously?
If you established Colorado nexus in a previous period but didn’t register, you could have outstanding sales tax liabilities, together with applicable penalties and interest.
Depending on your circumstances, a Voluntary Disclosure Agreement (VDA) may provide a way to resolve historical sales tax liabilities and potentially receive benefits such as penalty relief or a limited lookback period. It’s important to investigate your options before being contacted by the Colorado Department of Revenue.
FAQs
What is the economic nexus threshold in Colorado?
Colorado’s economic nexus threshold is generally more than $100,000 in qualifying retail sales during the previous calendar year.
Does Colorado have a transaction threshold?
No, Colorado does not have a separate transaction-count economic nexus threshold.
Do Amazon sales count toward Colorado’s economic nexus threshold?
Generally, marketplace-facilitated sales aren’t included when determining whether an individual marketplace seller has exceeded Colorado’s economic nexus threshold.
Can I have Colorado nexus without reaching $100,000?
Yes. Physical presence, such as employees, inventory or a business location in Colorado, can create nexus independently of the economic threshold.
What are Colorado home-rule cities?
Home-rule cities have greater authority over their own local sales taxes and may administer and collect them independently. This can create additional compliance requirements for businesses selling throughout Colorado.
Final Thoughts
Colorado’s $100,000 economic nexus threshold is relatively straightforward, but its local sales tax system can make compliance more complicated than in many other states.
Remote sellers should monitor their qualifying Colorado sales, separate marketplace and direct transactions, and consider whether they have physical nexus. Businesses should also understand how home-rule jurisdictions and the Retail Delivery Fee may affect their obligations.
RJM Tax Exemption can help you determine whether you have nexus in Colorado and assist with sales tax registration, filing and Voluntary Disclosure Agreements where required.
Last updated: August 2026. Sales tax rules can change. Always check current Colorado Department of Revenue guidance when determining your obligations.
