DOR Taxation web site

Consumer Information

When purchasing cigarette or tobacco products in Colorado, consumers can expect to pay Colorado state and federal excise tax (which is included in the price of the product) and state and local sales taxes (which are charged on the final product price).

Tax Rates
(These taxes are included in the price of the product.)

  • State Cigarette Excise Tax Rate: The cigarette excise tax in Colorado is 4.2 cents per cigarette and is represented by a $0.84 or $1.05 stamp depending on the number of cigarettes in the pack.
  • State Tobacco Excise Tax Rate: The tobacco products excise tax in Colorado is 40% of the manufacturers invoiced price.
  • Federal Tax Rates can be found on the federal Alcohol and Tobacco Tax and Trade Bureau Web site.
(These taxes are charged on the final product price.)
  • State Sales and Local Tax Rates: The state sales tax rate is 2.9%. Local tax rates can be found in Revenue Online. Look for View Local Sales Tax Rates under Other Services.


Examples

  • Mary wants to buy a pack of cigarettes that have a listed price of $5.25. There are 20 cigarettes in the pack. Included in the $5.25 is a $1.01 federal excise tax and a $0.84 state excise tax. She purchases the cigarettes at a location that must charge a state sales tax of 2.9%. Her final cost for the pack of cigarettes is $5.40. 
     
  • Joe is purchasing 1 pound of pipe tobacco that has a listed price of $10 per pound. Included in the $10 listed price is a $2.83 federal excise tax and up to a $2.86 state excise tax. He is purchasing the tobacco at a location that must charge a state sales tax of 2.9%.  His final cost for 1 pound of the pipe tobacco is $10.29 plus any local sales tax.


Untaxed or Contraband Cigarette and Tobacco Products
To determine whether cigarettes are contraband check for the tax stamp on the bottom of the pack. The tax stamp should say “Colorado.” Consumers should report any contraband products to the Tobacco Enforcement Section or the Cigarette Excise Section at (303) 205-8211 ext. 6860. For more information see: Stamps and Contraband and Purchasing

Anyone who purchases tobacco products without paying applicable taxes must pay the Colorado tobacco excise tax within 30 days of receiving the product. Payment of the tax can be made using the Tobacco Products Tax Return for Non-Licensed Distributors (DR 0225). Failure to pay the tobacco products tax within 30 days will result in 500% penalty plus tax and interest. The Colorado Department of Revenue will bill any Colorado entity which is reported to have purchased tobacco products (by telephone, mail or online) without payment of applicable taxes on the product.