Colorado car tax
Colorado charges a yearly specific ownership tax (SOT) in place of property tax, paid with registration at the county motor vehicle office. Taxable value is 85% of MSRP, and the rate drops from 2.10% in year one to a flat $3 from year ten. Registration also adds weight-based license fees and FASTER fees.
C.R.S. 42-3-107(9),(10), Class C. Taxable value = 85% of MSRP. The rate is 2.10% of that value in year 1, then 1.50%, 1.20%, and 0.90%. Years 5–9 pay 0.45% or $10, whichever is greater, and year 10 on pays $3. Mills shown are per $1 of MSRP. Registration fees and FASTER fees are extra.
Colorado car tax calculator
- $35,000 MSRP × 10.2 mills (vehicle age 2 yr) = $357
Based on the manufacturer's original list price (MSRP), not what you paid. Your bill may be prorated for months you owned the car.
How the tax drops as a $35,000 car ages in Colorado
Same car, each year of ownership. The rate falls as the car gets older.
Buying a car in Colorado: one-time tax
Colorado state sales/use tax — 2.9%, plus local sales tax where you live. Your trade-in is subtracted before tax.
County, city, RTD, and special-district taxes are added and collected at registration, based on your address.
Registration and due dates
Registration and FASTER fees are usually $50–$100 plus SOT. The license fee depends on weight and age, plus a road safety surcharge and a bridge safety surcharge. Title costs $7.20.
Paid every year with registration renewal, by the last day of the month the registration expires (one-month grace period).
Cut what your car costs in Colorado
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
What is specific ownership tax?
Colorado's yearly tax on cars, in place of personal property tax. It is 2.10% of 85% of MSRP in year one and falls to $3 a year from the tenth year.
Is SOT deductible?
Yes. It is value-based, so the SOT line on your renewal counts as a personal property tax for federal itemizing. The other fees do not.
Why is my Colorado registration so expensive on a new car?
Most of a new car's renewal is SOT. A $40,000 MSRP car pays about $714 in year one.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.