Colorado Vacation Rental Tax Calculator

Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your Colorado vacation rental property.

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Tax Types

What Taxes Apply to Colorado Short-Term Rentals?

Colorado STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.

Sales Tax

Colorado applies its state sales tax to short-term rental stays — currently at a base rate that contributes to combined lodging rates of 14.85%. Cities may add local sales tax on top.

Occupancy / Transient Lodging Tax

Colorado's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 14.85% in Denver and 13.5% in Breckenridge. This includes state, county, and city-level components.

Tourism / Convention Center Tax

Some Colorado cities levy additional tourism, convention center, or special district taxes that add 1–3% to your total rate. In Denver, the combined rate of 14.85% already includes these surcharges.

Federal & State Income Tax

Net rental profit is subject to both federal income tax (10–37% in 2026) and Colorado's state income tax at 4.4%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

Property Tax

Colorado's average effective property tax rate is 0.51%. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

Important

Does Airbnb Collect and Remit Taxes in Colorado?

Airbnb has agreements to collect and remit taxes in Colorado — but coverage is not always complete.

Airbnb collects Colorado's state-level lodging tax in most jurisdictions.
In Denver and Breckenridge: Airbnb may or may not collect all county/city taxes.
Rural areas: You're often fully responsible for all local tax collection.
Even where Airbnb collects, you may owe additional local levies or special district taxes.

Bottom line: Never assume Airbnb handles all your Colorado tax obligations. Verify with your local tax authority.

Compliance

Do You Need a Tax Permit in Colorado?

Yes. Colorado has significant STR regulation. Most jurisdictions require permits and licenses before you can operate.

State sales tax permit / seller's permit
City or county business license
Short-term rental operating permit
Lodging tax registration certificate
Zoning compliance certificate
Fire safety inspection certificate

Consequences of non-compliance

5–25% penalties on unpaid taxes in Colorado

Revocation of rental permit

Liens on your property

Tax Overview

Short-Term Rental Taxes in Colorado

Key tax facts every vacation rental host in Colorado should know.

State sales tax: 2.9% (applies to lodging)

State income tax: 4.4% flat rate

Property tax rate: ~0.51%

Cities and counties add significant lodging-specific taxes

City Breakdown

Lodging Tax Rates by City in Colorado

Combined lodging/occupancy tax rates for major vacation rental markets in Colorado.

CityCombined Rate

Denver

4.81% state + 3.87% city + 3.07% special + 3.1% lodging

14.85%

Breckenridge

2.9% state + 2% county + 3.5% city + 5.1% lodging

13.5%

Vail

2.9% state + 4.5% county + 5% special

12.4%

Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

FAQs About Colorado Vacation Rental Taxes

Common questions about short-term rental taxes, permits, and compliance in Colorado.

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