Colorado’s Retail Delivery Fee increased from $0.28 to $0.31 per qualifying delivery on July 1, 2026, with the new rate applying through June 30, 2027.
The fee can apply to both Colorado businesses and out-of-state remote sellers making taxable deliveries into Colorado. However, retailers with $500,000 or less in retail sales during the prior calendar year are generally exempt from paying the fee for the following year.
For ecommerce businesses already collecting Colorado sales tax, now is a good time to check that checkout systems, invoices and Retail Delivery Fee filings are using the new 31-cent rate.
What Is the Colorado Retail Delivery Fee?
Colorado’s Retail Delivery Fee (RDF) is a fee imposed on certain retail sales of tangible personal property delivered by motor vehicle to a location in Colorado. Colorado introduced the fee on July 1, 2022.
The fee generally applies when:
- Tangible personal property is sold at retail
- The property is delivered to a Colorado address by motor vehicle
- The transaction contains at least one item subject to Colorado state sales or use tax
The delivery can be made by the retailer or through another delivery provider. Colorado specifically includes goods delivered by mail and third-party delivery services. That makes the rule particularly important for ecommerce and remote sellers shipping orders into Colorado.
From July 1, 2026 through June 30, 2027, Colorado’s Retail Delivery Fee is $0.31 per qualifying retail sale delivered by motor vehicle to a Colorado customer. Remote sellers responsible for Colorado sales or use tax may also be responsible for the Retail Delivery Fee, subject to the state’s small-retailer exemption.
How Much Is the Colorado Retail Delivery Fee in 2026?
The fee increased from $0.28 to $0.31 on July 1, 2026.
| Period | Retail Delivery Fee |
| July 2024 – June 2025 | $0.29 |
| July 2025 – June 2026 | $0.28 |
| July 2026 – June 2027 | $0.31 |
The amount can change because components of the fee are adjusted over time. Although three cents may seem insignificant, it matters when an ecommerce business processes thousands of Colorado deliveries.
For example, 10,000 qualifying deliveries would create $3,100 in Retail Delivery Fees at the current rate.
Do Remote Sellers Have to Collect the Colorado Retail Delivery Fee?
Potentially, yes. The Colorado Department of Revenue states that the retailer or marketplace facilitator responsible for collecting and remitting Colorado sales or use tax on the items sold is also responsible for the Retail Delivery Fee when the requirements are met.
This means the fee isn’t limited to businesses physically located in Colorado.
An ecommerce company operating from:
- California
- Florida
- New York
- The UK
- Canada
- Another US state or country
could potentially have an obligation if it has Colorado sales tax nexus and makes qualifying deliveries into the state.
The $500,000 Small-Retailer Exemption
One of the most important rules for smaller remote sellers is Colorado’s $500,000 exemption. Retailers with $500,000 or less in retail sales during the prior calendar year are generally exempt from paying the Retail Delivery Fee during the following calendar year.
New businesses and businesses with no prior-year retail sales can also qualify for an exemption until their current-year sales exceed $500,000, subject to Colorado’s timing rules.
This means not every business with Colorado sales tax nexus automatically has to pay the Retail Delivery Fee.
Which Deliveries Are Subject to the Fee?
The RDF generally applies where a retail sale:
- Contains tangible personal property,
- Contains at least one item subject to Colorado state sales or use tax, and
- Is delivered by motor vehicle to a Colorado location.
Importantly, Colorado treats the sale transaction as one retail delivery, regardless of how many separate shipments are required to fulfil it.
Example
A customer places one online order containing three products. Because of inventory availability, the retailer ships:
- One product on Monday
- One on Wednesday
- One on Friday
That is still one retail sale, so only one Retail Delivery Fee generally applies.
What If Some Items in the Order Are Tax Exempt?
If the entire transaction is exempt from Colorado sales tax, the Retail Delivery Fee generally does not apply.
However, if an order contains both:
- Exempt products, and
- At least one product subject to Colorado sales tax
the Retail Delivery Fee can apply to the transaction.
This is particularly important for ecommerce businesses selling a mixture of taxable and exempt products.
What About Amazon and Marketplace Sellers?
Colorado’s rules also apply to marketplace facilitators. Where a marketplace facilitator such as Amazon is responsible for collecting Colorado sales tax on a marketplace transaction, the marketplace facilitator is generally responsible for the applicable Retail Delivery Fee as well.
That means an Amazon seller should not automatically collect the fee separately on an order where the marketplace is already responsible for it. However, businesses selling through multiple channels need to be careful.
For example, a business might sell through:
- Amazon
- Shopify
- Walmart Marketplace
- Its own website
Marketplace orders and direct sales can have different collection responsibilities.
Shopify and Direct Ecommerce Sellers Should Check Their Settings
The 2026 rate increase is particularly relevant to businesses processing their own Colorado sales. If you’re selling directly through Shopify, WooCommerce, BigCommerce or another ecommerce platform, check that your system is applying the current $0.31 fee where required. An outdated checkout configuration could mean you’re still applying the old $0.28 amount. Across thousands of transactions, even a small difference can create an underpayment.
How Is the Colorado Retail Delivery Fee Filed?
Colorado uses Form DR 1786, Retail Delivery Fee Return, for reporting the fee.
Retail Delivery Fee returns generally follow the retailer’s Colorado sales tax filing frequency. For example, a business filing sales tax quarterly will generally file its RDF return on the same schedule. The Colorado Department of Revenue encourages businesses to file and pay electronically through Revenue Online.
Businesses with an active RDF account should also remember that returns can remain required even during periods where there were no qualifying deliveries, unless the account has been properly closed.
Example: Remote Shopify Seller
Imagine a Texas-based Shopify business that has:
- Colorado sales tax nexus
- More than $500,000 in qualifying prior-year retail sales
- 2,000 qualifying Colorado deliveries during August 2026
At the new rate: 2,000 × $0.31 = $620
The business would therefore have $620 of Colorado Retail Delivery Fees associated with those qualifying transactions. Its ecommerce system should be configured correctly so the fee is handled from the point of sale rather than discovered later during filing.
What Should Remote Sellers Do Now?
If you sell physical products to Colorado customers, check four things:
- Are you required to collect Colorado sales tax?
- Do you qualify for the $500,000 Retail Delivery Fee exemption?
- Is your checkout system using the new $0.31 rate?
- Is your Retail Delivery Fee account being filed correctly?
Businesses selling through both marketplaces and their own websites should also make sure they understand which party is responsible for the fee on each sales channel.
Common Colorado Retail Delivery Fee Mistakes
- Continuing to use the old $0.28 rate after July 1, 2026
- Assuming the fee only applies to Colorado-based businesses
- Charging the fee on completely tax-exempt transactions
- Charging a separate fee for each package instead of each qualifying retail sale
- Duplicating a fee already handled by a marketplace facilitator
- Assuming every small retailer must pay the fee
- Forgetting to file an active RDF account
These are small errors individually, but they can become significant across large transaction volumes.
FAQs
What is the Colorado Retail Delivery Fee in 2026?
The fee is $0.31 per qualifying retail delivery from July 1, 2026 through June 30, 2027.
Does the Colorado Retail Delivery Fee apply to remote sellers?
Yes, it can. Out-of-state retailers responsible for collecting Colorado sales or use tax can also be responsible for the RDF, subject to applicable exemptions.
Are small businesses exempt?
Retailers with $500,000 or less in retail sales during the prior calendar year are generally exempt from paying the fee during the following year.
Is the fee charged per package?
No, each retail sale transaction is generally treated as one retail delivery even when several shipments are required to complete the order.
Does the fee apply to tax-exempt orders?
If the entire retail sale is exempt from Colorado sales tax, the Retail Delivery Fee generally does not apply. If the transaction contains at least one taxable item, it can apply.
Does Amazon collect the Colorado Retail Delivery Fee?
Where a marketplace facilitator is responsible for collecting Colorado sales tax on a transaction, it is generally also responsible for the applicable Retail Delivery Fee.
Final Thoughts
Colorado’s Retail Delivery Fee is easy to overlook because it is separate from ordinary sales tax and the amount per transaction is relatively small. But for high-volume ecommerce businesses, those 31-cent charges quickly add up.
The key takeaway is from July 1, 2026, qualifying Colorado retail deliveries are subject to a $0.31 Retail Delivery Fee. Remote sellers should check whether they are liable, whether the $500,000 exemption applies, and whether their ecommerce systems and Colorado filings have been updated to the new rate.
RJM Tax Exemption can help remote and ecommerce sellers determine their Colorado sales tax obligations, register for the correct Colorado accounts, and manage ongoing sales tax and Retail Delivery Fee filings.
