Credit card processing and merchant services in Denver, CO
Denver collects its own sales tax, with one rate for general sales and another for food and drink. Add Colorado surcharge and cash rules, and your POS setup needs care.
Denver runs its own sales tax. The City and County of Denver is a home-rule city that administers and collects its own taxes, so a business located in Denver that makes retail sales needs a Denver sales tax license as well as a Colorado one, even if it operates from home. The Census Bureau estimated 740,613 residents in July 2025, and the 2022 Economic Census counted $15.0 billion in retail sales.
The rates are where a POS setup goes wrong. General sales carry 9.15% combined: 2.9% state, 1% RTD, 0.1% for the cultural facilities district and 5.15% for Denver. Food or drink sold for immediate consumption is different. Denver's share drops to 4%, for 8.00% combined. A coffee shop that also sells mugs may need both rates in the same till. Denver applies the same 4% to alcoholic beverages, by the container or by the drink. Lodging of fewer than 30 days carries Denver's 10.75% lodger's tax, and Denver lists a 1% tourism improvement district tax filed on the same return.
Colorado's state rules apply here too. You can surcharge credit cards up to 2% or your actual merchant discount fee, using the statute's sign wording if you choose 2%, but never on debit or gift cards. And if someone takes payment in person, you generally have to accept cash, with fines of up to $250 per refused transaction. Our Colorado page has the details and sources.
Clearo works with Denver merchants remotely, with a dedicated rep, interchange-plus pricing and no long-term contract. Our restaurant guide covers terminals for food service, and a free statement review shows what you're paying today.
Rules that matter in Denver
Denver sales tax license
Denver is a home-rule city that has elected to administer and collect its own sales and use tax. A Denver sales tax license is required when a business located in Denver makes retail sales, leases or rentals of tangible personal property or taxable services in the city, including a business run from a residence, and for vendors with economic nexus with the city.
A business located outside Denver that comes into the city to make retail sales needs a Denver retailer's use tax license instead.
Sources: City and County of Denver, Business tax FAQs; City and County of Denver, Business taxes
Two rates at many registers
Denver's general sales and use tax rate is 5.15%, or 9.15% combined with the state, RTD and cultural facilities district taxes. Food or beverage sold for immediate consumption is subject to Denver sales tax of 4%, for 8.00% combined, and Denver's 4% also applies to alcoholic beverages sold by the container or by the drink.
If you sell both kinds of items, set up both rates in your POS before you go live.
Sources: City and County of Denver, Business taxes; City and County of Denver, Business tax FAQs; City and County of Denver, Denver combined tax rates, effective January 1, 2025 (PDF)
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Common questions
What sales tax rate does a Denver business charge?
It depends on what you sell. General sales carry 9.15% combined: 2.9% state, 1% RTD, 0.1% cultural facilities district and Denver's 5.15%. Food and drink for immediate consumption carries Denver's 4% rate instead, 8.00% combined. If you sell both, set up both rates in your POS.
Do I need a Denver sales tax license if I already have a Colorado one?
You do, as long as your business is located in Denver and sells at retail there. Denver administers its own sales tax, and its license is required even for businesses run from home. Businesses based outside Denver that come into the city to sell need a Denver retailer's use tax license instead.
Can a Denver restaurant add a credit card surcharge?
Yes, within Colorado's rules: up to 2% or your actual merchant discount fee, a separate line on the receipt, and no surcharge on cash, checks, debit cards or gift card redemptions. If you use the 2% option, the sign wording comes from the statute. Visa's 3% and Mastercard's 4% caps also apply, and Colorado's 2026 total price law matters if you add other mandatory fees.
Can a Denver business go cashless?
Generally not if someone takes payment in person. Colorado requires retail establishments to accept U.S. currency in that case, with fines of up to $250 per refused transaction. A store with several registers at one address can limit cash to one of them, and businesses that sell mainly through automatic renewal contracts are exempt.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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