North America

Colorado Removes State Level Service Fee

Ryan Brady
December 22, 2025

Effective January 1, 2026, the state level discount available for timely filed sales and use tax returns in Colorado has been removed. This discount is termed as a “service fee” in Colorado. Please note, this change does not impact local level service fees in Colorado.

This change is included in the Colorado Department of Revenue’s January 1, 2026 Sales Tax Rate Changes page here.

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Author

Ryan Brady

Ryan Brady is a Principal Regulatory Specialist at Sovos within the Regulatory Analysis & Design Department. Ryan focuses his work on domestic sales tax and related fees as well as supporting Sovos’s various tax filing solutions. Ryan has a B.A. in Economics from Keene State College.
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