TaxByte: Colorado’s Retail Delivery Fee Drops Slightly for FY 2025–2026 | TaxValet

Colorado has announced a slight decrease in its Retail Delivery Fee for the fiscal year starting July 1, 2025. The total fee will drop from $0.29 to $0.28 per retail delivery, reflecting updated rates across several sub-fees.

Lower Retail Delivery Fee Means Minor Savings for Colorado Businesses and Shoppers

Businesses making retail deliveries in Colorado—and the consumers they serve—should take note of this fee change. If you sell taxable goods that are delivered by motor vehicle to an address in Colorado, this fee applies to you. While the fee adjustment is modest, it affects how you calculate costs, display fees to customers, and manage compliance.

This also matters for e-commerce businesses, marketplaces, and delivery-based retailers operating in or shipping to Colorado.

What Retailers Need to Do to Stay Compliant

If your business delivers taxable goods in Colorado, here’s how to prepare for the upcoming change:

• Update systems: Adjust point-of-sale or invoicing systems to reflect the new $0.28 total fee effective July 1, 2025.
  
  
• Review your obligations: This fee applies even if the sale is exempt from sales tax—but only if the items delivered would have been taxable in another scenario.
  
  
• Know your jurisdictions: The Retail Delivery Fee is not subject to Colorado’s state or state-administered local sales taxes, but some home-rule cities might treat it differently. Use Colorado’s Sales Tax Lookup to check applicability.
  
  
• Watch for marketplace facilitator rules: If you sell through third-party platforms, they may be responsible for collecting and remitting this fee.

How TaxValet Simplifies Colorado Sales Tax Compliance

Managing state-by-state delivery fees and sales tax rules doesn’t have to be a headache. At TaxValet, we monitor fee changes like Colorado’s so our clients don’t have to. If you were a TaxValet client, we’d automatically update your Retail Delivery Fee setup, ensure correct reporting, and keep you in compliance—no stress, no surprises.

Want help navigating sales tax complexity? Schedule a free consultation with our team to see how we can help.