If you're a resident of Colorado and have recently purchased a vehicle, you're liable to pay Colorado car tax, ownership tax and other fees. Sales tax differs across every state in the US and it's thus beneficial to research your state's DMV website to obtain updated information. You could also use a Colorado car tax calculator available online, to get an estimate of the amount you will have to pay. In order to get an accurate figure, bear in mind these guidelines.
Calculating Colorado State Auto Sales Tax:
- The sales tax is calculated as a certain percentage of the net purchase price of a vehicle. The fees that have to be paid along with the taxes are calculated according to the vehicle's date of purchase, year, weight and taxable component.
- Although the taxes charged vary according to location, the taxes include Colorado state tax, RTD tax and city tax. To cite an example, the total sales tax charged for residents of Denver amounts to 7.72 percent.
- To find out your auto sales tax, take the sales price of your vehicle and calculate 7.72 percent of this price. This is the estimated amount that you will have to pay. For a more accurate figure, visit a branch office in person and keep your title papers handy.
- Apart from this, you're also responsible for paying ownership tax. To find out how much you have to pay, visit the Denver.gov website. This site is also a good source of information on vehicle registrations, licenses and emission tests.
It's important to abide by the law when it comes to taxes and fees. You also need to carry the necessary insurance coverage determined by the state you reside in.