Ring up a purchase inside Durango city limits and the register adds 9.4%. That number is three taxes stacked on each other, and only one of them belongs to the city. Knowing which is which matters if you run a business, buy a car or rent a room by the night, because each of those hits a different piece.
How is Durango's 9.4% sales tax split?
The City of Durango's own tax page states that retail sales inside the city limits are taxed at a total of 9.4%. The pieces:
| Layer | Rate | Who collects it |
|---|---|---|
| State of Colorado | 2.9% | Colorado Department of Revenue |
| La Plata County | 3.0% | Colorado Department of Revenue |
| City of Durango | 3.5% | The City of Durango itself |
| Total inside city limits | 9.4% |
Step outside the city line and the 3.5% falls away. State plus county adds up to 5.9%. The city piece applies to sales made inside Durango, so a store just past the city line charges less than one on Main Avenue. The county's sales tax page confirms the 3% county rate and the 2.9% state rate.
Why does the city collect its own tax?
Durango is a home rule city. That means it writes and runs its own sales tax under the municipal code rather than letting the state do it. A business with a Colorado sales tax license still has to register with the city separately, because the state license covers only state-collected taxes. The county page says so directly.
Businesses file returns through the city's MuniRevs portal, or mail or drop off payment at City Hall, 949 E. Second Avenue. The city lists the filing rhythm:
- Monthly is the default
- Quarterly is available if estimated tax is under $300 a month
- Annual is available if tax is under $50 a quarter, or the business is service-based
- Returns are due the 20th of the month after the period ends, and late ones carry a 10% penalty plus interest
Starting out? Our guide to starting a business in Durango covers the licensing steps around this.
What is Durango's lodgers tax and use tax?
Two other city taxes ride alongside the sales tax. Use tax is 3.5% and applies when you buy something taxable without paying the city sales tax at the register, say from an online seller that did not collect it. Lodgers tax is 5.25%, charged on top of the 3.5% sales tax for lodging of 30 days or less. The city says that covers hotels, motels, inns, VRBOs and Airbnb hosts. Voters raised the lodgers rate from 2.0% to 5.25% in April 2021, and the increase took effect June 1, 2021.
What does the city spend its 3.5% on?
The city's page breaks its 3.5% into five dedicated pieces:
- General Fund: 2.0%
- 2019 Streets measure: 0.5%
- 2015 Parks and Multimodal measure: 0.5%
- 2005 Parks measure: 0.25%
- 2005 Capital Improvement measure: 0.25%
How does sales tax apply when I buy a vehicle?
The county clerk's motor vehicle FAQ says the 2.9% state tax is due wherever you take delivery. The 3% county tax is due if you take possession in La Plata County. Durango's 3.5% is due if you live inside city limits, no matter where you picked up the car. So a Durango resident who buys a car in another town still owes the city piece at registration. For office locations, see where the DMV is in Durango.
Is there relief for lower-income households?
The city runs a Food Tax Rebate and a Utility Refund. For 2026, applications ran February 2 through July 2 for Durango city residents whose 2025 household income came in at or below 50% of area median. The posted ceilings were $41,150 for one person, $47,000 for two, $52,900 for three and $58,750 for four or more. Printed forms were available at City Hall, the Transit Center and the Senior Center. Dates change each year, so check the city page before assuming the window repeats.
How do I check the rate for an exact address?
Rates differ by city and district, and a home-rule city can change its own at a ballot. The state posts a sales tax lookup tool for any Colorado address. Use it for anything outside Durango proper, then compare against the city's page for anything inside it.