The Colorado ammo tax is a 6.5% state excise tax on the retail sale of ammunition, firearms, and firearm precursor parts, effective April 1, 2025. Voters approved it as Proposition KK in November 2024, and it sits on top of state and local sales tax plus the federal excise tax already built into the wholesale price.1Colorado Department of Revenue – Taxation. Firearms and Ammunition Tax
What the Tax Applies To
The 6.5% rate covers three categories sold at retail in Colorado.
Ammunition means finished cartridges and the individual components designed for use in a firearm: cases, primers, bullets, and propellant powder. If you reload your own rounds, each component you buy is taxed on its own.2Justia Law. Colorado Code 39-37-103 – Definitions
Firearms follow the definitions already in Colorado’s criminal code: any weapon designed to expel a projectile by explosive action.
Firearm precursor parts is the broadest category and the one most likely to catch buyers off guard. It covers unfinished frames and receivers, fire control components, and devices designed to increase a firearm’s rate of fire, concealability, magazine capacity, or destructive capability.2Justia Law. Colorado Code 39-37-103 – Definitions Certain accessories and aftermarket parts fall inside the tax even though they aren’t firearms themselves.
How Much You’ll Actually Pay
The 6.5% is calculated on the base retail price, after excluding federal excise tax, sales or use tax, retail delivery fees, and other government taxes already in the transaction.1Colorado Department of Revenue – Taxation. Firearms and Ammunition Tax
In practice:
- A $20 box of ammunition adds about $1.30.
- A $500 handgun adds about $33.
- A $1,000 rifle adds $65.
Those figures stack on top of your county’s sales tax and the federal firearms and ammunition excise tax that manufacturers already embed in the wholesale price (10% on handguns, 11% on long guns and ammunition).3Congress.gov. Firearms and Ammunition Excise Tax (FAET) A Colorado buyer can easily face 20% or more in combined taxes on a firearm purchase once every layer is counted.
The tax is levied on the vendor rather than the buyer, but retailers pass it through at the register.4Justia Law. Colorado Code 39-37-104 – Excise Tax Levied
Who Doesn’t Pay
Two groups are exempt. Peace officers and law enforcement agencies don’t pay the excise tax on qualifying purchases, and neither do active duty members of the U.S. Armed Forces.5Justia Law. Colorado Code 39-37-105 – Exemptions The statute does not extend the exemption to retired law enforcement, veterans, or National Guard members outside of active duty.
There is no exemption for competitive shooters, shooting ranges stocking inventory, hunters, or concealed carry permit holders. A civilian buying ammunition in Colorado pays the 6.5% regardless of intended use.
Online and Out-of-State Purchases
Ordering ammunition from a retailer outside Colorado does not reliably sidestep the tax. The statute treats a vendor as “doing business in this state” if the vendor solicits orders from Colorado residents through websites, catalogs, or other media and its Colorado retail sales of firearms, ammunition, or precursor parts exceeded $20,000 in the prior calendar year.2Justia Law. Colorado Code 39-37-103 – Definitions
The Department of Revenue has confirmed that when an out-of-state vendor makes the sale but ships to a local FFL for the background check, the out-of-state vendor owes the excise tax.6Colorado Department of Revenue. Firearms Ammunition FAQs
Remote sellers whose Colorado sales fall below the $20,000 threshold are not considered to be doing business in the state and don’t owe the tax. That threshold applies only to out-of-state vendors; it isn’t a small-business exemption. A Denver gun shop with $10,000 in annual sales still owes the tax because it has a physical location in Colorado.
Where the Revenue Goes
The tax is projected to generate up to $39 million in its first full year, deposited into the Firearms and Ammunition Excise Tax Cash Fund and distributed through a statutory priority order.7Colorado General Assembly. Proposition KK: Firearms and Ammunition Excise Tax
- The first $35 million each year (adjusted annually for inflation) goes to the Colorado Crime Victim Services Fund for crisis response, counseling, legal advocacy, and emergency financial assistance.
- The next $10 million funds the School Security Disbursement Grant Program for emergency response training and safety-related construction at public schools.
- The next $10 million goes to the Behavioral and Mental Health Cash Fund, including services for veterans and youth behavioral health crisis response.
- Anything left after those tiers goes back to the Crime Victim Services Fund.
Because the allocation tiers are written into the statute, the legislature cannot simply redirect the money to the general fund.8Colorado General Assembly. Colorado Code 39-37-301 – Firearms and Ammunition Excise Tax Cash Fund
Is the Tax Being Challenged in Court
Yes. On March 31, 2025, one day before the tax took effect, a coalition including the National Rifle Association, Firearms Policy Coalition, Second Amendment Foundation, and Colorado State Shooting Association filed suit in Denver County District Court. The complaint argues the 6.5% excise tax violates the right to keep and bear arms and seeks a permanent injunction against collection.9NRA-PVF. Langston v. Humphreys – Complaint
As of early 2026, the tax remains in effect while the case proceeds. Federal firearms licensees should keep collecting and remitting unless a court orders otherwise; the ATF broadly requires FFLs to comply with applicable state laws as a condition of keeping their federal license.10Bureau of Alcohol, Tobacco, Firearms and Explosives. Federal Firearms Licensee Quick Reference and Best Practices Guide