Credit card processing and merchant services in Colorado Springs, CO

Colorado Springs had 494,743 residents in the Census Bureau's July 2025 estimate. Like Denver, it's a home-rule city that collects its own sales and use tax, so a business here deals with two tax offices: the Colorado Department of Revenue for the state's tax and the city for its own.

The city's rate is 3.07%, built from four parts: 2.00% for the general fund, 0.10% for trails, open space and parks (TOPS), 0.40% public safety sales tax and 0.57% for the 2C road tax. Add the state's 2.9%, El Paso County's 1.23% and the Pikes Peak Rural Transportation Authority's 1%, and the combined rate is 8.20%. The city lists that as its current rate, in effect since January 1, 2021. On a $75 sale, the tax comes to $6.15.

You'll need a city Sales and Use Tax License if you collect any combination of city sales tax, lodgers' tax, auto rental tax, motion picture theatre admissions tax or bicycle excise tax, or if you report use tax. It costs between $5 and $20, depending on the time of year you apply.

Colorado's statewide rules still govern card fees and cash. A credit card surcharge can't exceed 2% of the sale or your actual merchant discount fee, it goes on the receipt as its own line, and debit cards are off-limits. Retail stores that take payment in person generally have to accept cash. Our Colorado page has the statute wording, and our Denver page covers that city's different rates.

Either surcharge cap requires knowing your real per-card cost, and a free statement review gives you that number. Our surcharging program handles the disclosures, and the dual pricing and surcharging guide compares the options.