Colorado · CO · Money & taxes
Colorado: Are groceries taxed?
Groceries exempt
Colorado exempts food for home consumption from its state sales tax, but cities and counties may still tax groceries.
The state exemption for food has been in place since 1980. Local sales taxes include food unless the city or county has chosen to adopt the food exemption, so grocery tax depends on where you shop. Food and drink served by restaurants and other dining establishments is taxable.
What the law says
The following shall be exempt from taxation under the provisions of part 1 of this article 26: (e) Commencing January 1, 1980, all sales of food; and
Sources
- C.R.S. § 39-26-707(1)(e) (FindLaw mirror) Mirror of official text · codes.findlaw.com
- C.R.S. § 29-2-105(1)(d) (local option food exemption, FindLaw mirror) Mirror of official text · codes.findlaw.com
- Colorado DOR: Sales Tax Guide Official · tax.colorado.gov
Confirm with the state
- Agency
- Colorado Department of Revenue, Taxation Division
- Phone
- (303) 238-7378
- Website
- tax.colorado.gov
How bordering states compare
- Arizona Groceries exemptArizona exempts groceries from its state transaction privilege (sales) tax, but cities and towns may tax food.
- Kansas Groceries exemptKansas's state sales tax rate on food and food ingredients has been 0% since January 1, 2025.
- Nebraska Groceries exemptNebraska exempts food and food ingredients from its 5.5% state sales tax, except prepared food and vending machine food.
- New Mexico Groceries exemptNew Mexico lets grocery stores deduct food sales from gross receipts, so groceries aren't subject to its gross receipts tax.
- Oklahoma Groceries exemptOklahoma ended its 4.5% state sales tax on groceries on August 29, 2024, though local sales taxes still apply.
- Utah Taxed at a lower rateUtah taxes groceries at a 1.75% state rate instead of its 4.85% general state rate; with local taxes, groceries pay 3%.
- Wyoming Groceries exemptWyoming exempts food for home consumption from its 4% state sales tax. Prepared food and alcohol are taxed.