Is there sales tax on groceries in Colorado?
Quick answer
No. Groceries bought for home preparation are exempt from Colorado state sales tax. Prepared and restaurant food is still taxable.
Food for home consumption is exempt from the 2.9% state rate. Home-rule cities may still tax groceries, so the local share can apply.
Rule summary
How Colorado treats each category.
| Grocery food (home consumption) | Exempt from state sales tax |
|---|---|
| Prepared and restaurant food | Taxable at the full combined rate (8%–8.81%) |
| Candy and soft drinks | Usually taxable even where groceries are exempt |
| Prescription medicine | Exempt |
Source: Colorado Department of Revenue · rates as published for 2026
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the Colorado Department of Revenue or a tax professional before relying on it for filing.
Combined rates in Colorado
What a taxable purchase actually costs in Colorado.
Frequently asked
Answers pulled from the same rule set.
- Is there sales tax on groceries in Colorado?
- No. Groceries bought for home preparation are exempt from Colorado state sales tax. Prepared and restaurant food is still taxable.
- Is prepared food taxed differently than groceries in Colorado?
- Yes. Colorado treats hot, ready-to-eat and restaurant food as a taxable retail sale even where unprepared grocery food is exempt or reduced.
- Are prescription drugs taxable in Colorado?
- No. Prescription medicine is exempt from sales tax in Colorado.
More Colorado guides
Other Colorado rules that change the total.