Aurora, Colorado charges a 3.75% city sales tax on most retail sales, and because Aurora is a home-rule city it collects that tax itself rather than through the Colorado Department of Revenue. Buyers and sellers deal with Aurora’s tax division directly for anything tied to the city portion.
What You Actually Pay at the Register
The city’s 3.75% is only part of the combined rate rung up at checkout. Aurora sits across three counties, so the total varies by where the store is:
- Arapahoe County portion of Aurora: 8.00% total (3.75% city, 2.90% state, 1.00% RTD, 0.10% cultural district, 0.25% county)
- Adams County portion: 8.50% total (same breakdown, with a 0.75% county rate)
- Douglas County portion: 8.75% total (same breakdown, with a 1.00% county rate)
Retailers collect the whole combined amount, but only the 3.75% city share goes to Aurora. The rest is split among the state, RTD, and the county.
What Aurora Doesn’t Tax
Groceries purchased for home consumption are exempt from the city’s 3.75%. State and county taxes still apply to food, but Aurora’s share does not.
Other exempt categories include prescription drugs for humans and animals, insulin and diabetic supplies (including glucose for treating insulin reactions, urine and blood testing kits, and insulin delivery devices), and manufacturing machinery or machine tools exceeding $500 that are used directly and predominantly to produce tangible personal property for sale. The manufacturing exemption requires the buyer to file a declaration of entitlement with both the retailer and Aurora’s finance director, and it doesn’t cover food preparation, electricity generation, or mining.
Marijuana and Lodging Have Their Own Rates
Retail marijuana carries an extra 5% city sales tax on top of the standard 3.75%, for a combined city rate of 8.75%. State taxes stack on top of that, including the state’s 15% marijuana excise tax and the 2.90% state sales tax.
Hotels, motels, and short-term rental operators collect an 8% lodger’s tax on the price of the stay. That tax is separate from and additional to the regular sales tax that applies to the same booking, and operators remit it directly to Aurora.
Use Tax on Purchases From Outside the City
If you buy tangible personal property from a seller who doesn’t collect Aurora’s tax, and you store, use, or consume the item in the city, you owe Aurora use tax at 3.75%. This most often catches businesses that buy supplies, equipment, or inventory from out-of-city or out-of-state vendors.
Construction Materials
Construction projects have their own use tax procedure. Before Aurora issues a building permit, the city collects a deposit of 3.75% calculated on either 50% of the total estimated project cost or 100% of the estimated cost of materials and fixtures, whichever the applicant picks. The city then issues a receipt tied to the permit number. The permit holder shows that receipt to material vendors, who then don’t charge Aurora city sales tax on materials for the project. It’s a way to prepay so the same materials aren’t taxed twice.
Remote Sellers
An out-of-state retailer can’t cover its Aurora obligation by filing only with the state. Aurora has adopted provisions based on the Colorado Municipal League’s model ordinance requiring remote sellers and marketplace facilitators to collect and remit Aurora’s sales tax once they exceed $100,000 in annual sales into Colorado. Above that threshold, the seller registers with Aurora separately, files on the city’s schedule, and remits the 3.75% city tax on sales delivered into Aurora, whether or not it has any physical presence in the state.
Registering Your Business
Any business collecting Aurora tax or operating in the city needs a city business license before it starts. The application fee is $19 and the initial license costs $28. You’ll provide either a Federal EIN or, for a sole proprietor, your Social Security number, along with the legal business name, any DBA, the physical address, and the date you started operating in Aurora.
Registration is handled through the Aurora Tax Portal, which is also where you’ll file returns. Once processed, the application produces a tax account number that ties to every return you file. The license is valid for two years, and renewal costs $28. Let it lapse and you lose your authorization to operate and collect tax.
Filing and Payment
Sales and use tax returns are due on the 20th of the month following the end of your assigned taxable period. Aurora assigns each business a filing frequency, monthly or quarterly, based on tax volume. If the 20th lands on a weekend or holiday, the deadline moves to the next business day.
You file through the Aurora Tax Portal, which issues a confirmation number when the return is submitted. Payments can be made by ACH debit, credit card, or a mailed check with a system-generated voucher. Electronic payments post immediately; mailed checks are accepted if they arrive by the due date.
Late filing and late payment are penalized separately, and interest runs on any tax deficiency. If you can’t pay the full balance, file the return on time anyway so you’re not stacking both charges.
The Occupational Privilege Tax Is Gone
Aurora used to impose an Occupational Privilege Tax, often called the “head tax,” charging both employees and employers a flat monthly fee. It was repealed effective January 1, 2025. No withholding or remittance is required for any period after December 2024. Final returns covering December 2024 and the fourth quarter of 2024 were due January 31, 2025. If you find an error on a filing for a period before the repeal, you can still submit an amended return or refund claim through the tax portal.