Denver Sales Tax License: Registration, Filing, and Renewal

A Denver sales tax license is free, issued by the City and County of Denver through its online eBiz Tax Center, and required of any business “doing business” in the city — including remote sellers that pass $100,000 in annual sales into Denver.¹ Denver is a home-rule city, so it issues its own license, sets its own rate (currently 5.15% for general sales tax), and enforces its own filing deadlines separately from the State of Colorado.² Registering with Colorado does not register you with Denver.

Who Needs a Denver Sales Tax License

If you have a storefront, office, warehouse, or delivery vehicles inside city limits, you have physical presence in Denver and need the license.¹ Remote sellers with no physical footprint still need one once sales into Denver reach $100,000 in a year. That covers online retailers, subscription services, and anyone shipping to Denver customers from outside the city.

Service providers are in scope too. Even if the services you sell are not themselves taxable, Denver still requires the license when you are doing business in the city. The obligation is triggered by commercial activity, not by whether individual transactions are taxable.¹

A separate obligation applies if you do not sell taxable goods but consume, store, or use taxable items in Denver: consumer’s use tax. A sales tax license includes use tax registration automatically, and you report both on the same return. Businesses without a sales tax license that still use taxable items in Denver need a standalone consumer’s use tax account.¹

How to Register Through the eBiz Tax Center

Denver requires all business tax registration and filing to happen online, through the eBiz Tax Center at denvergov.org/ebiztax.² The application runs eight steps, starting with creating a login and ending with selecting which taxes apply to your business.³

Have this information ready:

Federal Employer Identification Number, or a Social Security number if you file as a sole proprietor.
Legal business name and any trade or “doing business as” names.
Organization type. Sole proprietors enter their personal name; every other entity type enters the legal business name.
Business start date in Denver, which sets when your tax liability begins.
Name, title, and contact details for up to two owners or officers.
NAICS code matching your primary activity. If the standard categories do not fit, you can type the six-digit code manually.

At the final step you pick which taxes apply — sales tax, use tax, occupational privilege tax, lodger’s tax — and indicate whether a third party will file returns for you.³

There is no fee. Denver previously charged a biennial licensing fee and has eliminated it.¹ Applications currently take about 10 days on average, though volume affects that timeline.⁴ Once issued, the license must be displayed at your place of business.

Filing Schedules and Due Dates

Denver assigns your filing frequency based on your annual sales tax revenue:¹

Monthly filers: annual sales tax of $3,600 or more, averaging at least $300 per month.
Quarterly filers: annual sales tax between $1,200 and $3,599.99.
Annual filers: annual sales tax under $1,200.

Returns are due by the 20th of the month following the reporting period. January’s monthly return, for example, is due by February 20; the same pattern applies to quarterly and annual returns.¹

One rule catches new licensees: you must file a return for every period, even a period with zero sales. Skipping a period because you had nothing to report will still trigger the minimum penalty.¹

Penalties for Late Filing

Late-filed or late-paid returns carry a 15% penalty on the unpaid tax, with a $25 minimum. The $25 floor applies even to a zero-tax return filed late.¹

Interest runs on top of the penalty at 1% per month, or any fraction of a month, on unpaid tax from the original due date until payment.¹ A business that falls behind on several filing periods can watch the combined charges grow quickly. Filing on time — including zero returns — is what keeps that from starting.

Renewing the License

Denver sales tax licenses cover two years and renew automatically. The city mails renewed licenses in the fall before the new period; 2027 licenses, for instance, were mailed starting November 2025.¹ There is no renewal fee. If your address, business name, or ownership has changed, update your account through the eBiz Tax Center before the new license period begins.

Buying for Resale and Charitable Exemptions

Holding a Denver sales tax license also lets you buy inventory tax-free for resale. You need a valid resale license from both the State of Colorado and the City of Denver, and the item has to be resold in the same form or built into a product you sell. Materials you consume while providing a service or manufacturing something do not qualify.⁵

Charitable exemptions are separate from the license and separate from anything the state grants. A Colorado nonprofit exemption does not carry over into Denver because the city sets its own rules.⁶ To qualify in Denver, an organization must hold federal 501(c)(3) status and apply separately for a Denver Letter of Exemption from the Department of Finance. Letters are valid for five years, and each exempt purchase must be billed to the organization, paid from its funds, and used solely for its purposes.⁷

Closing a Denver Tax Account

When a business shuts down, sells, or leaves Denver entirely, close the account formally. Denver publishes an Account Change or Closure Request Form covering sales tax, consumer’s use tax, occupational privilege tax, and other Denver-specific taxes.⁸ Provide the account number, closure date, and reason. If the business was sold, include the new owner’s contact information.

File every outstanding return before you submit the closure, including a final return for any partial period. Unfiled returns keep generating penalties even after the doors close. If you are only relocating but still have Denver sales or employees, keep the account open — the form distinguishes a full departure from a partial one, so read the options before signing.

1
City and County of Denver. Business Tax FAQ
2
City and County of Denver. Business Tax Information
3
City and County of Denver. Registering a New Business Through Denver’s eBiz Tax Center
4
City and County of Denver. Check Our Current Application Processing Times
5
City and County of Denver. Tax Guide Topic 24 – Exemption Burden of Proof
6
Colorado Department of Revenue – Taxation. Charities and Nonprofit Organizations
7
City and County of Denver. Tax Guide Topic 10 – Charitable Exemption
8
City and County of Denver. Account Change or Closure Request Form