The Colorado retail delivery fee is a flat $0.28 charge added to each delivery of taxable goods shipped by motor vehicle to an address in Colorado. It is not a sales tax on the goods. It is a separate per-transaction fee that funds state transportation and environmental programs, and the retailer or marketplace facilitator handling the sale collects it at checkout and remits it to the Colorado Department of Revenue.1Department of Revenue – Taxation. Retail Delivery Fee
When the Fee Applies
The fee is triggered whenever a retailer or marketplace facilitator delivers tangible personal property by motor vehicle to a Colorado location and at least one item in the order is subject to Colorado state sales or use tax. It applies whether the seller sits inside Colorado or ships in from out of state, and it applies to business-to-business sales as well, so long as taxable goods are involved.
One order equals one fee. If a single purchase arrives in three boxes on three different days, the buyer pays $0.28 once, not three times.2Department of Revenue – Taxation. Retail Delivery Fee Deliveries
The fee does not apply when the buyer picks up the goods at the retailer’s location. Buy-online-pick-up-in-store and curbside pickup transactions are outside the fee entirely.2Department of Revenue – Taxation. Retail Delivery Fee Deliveries
Current Rate
From July 2025 through June 2026, the total fee is $0.28 per delivery. The Department of Revenue adjusts the amount each July for inflation, so the rate can change year to year. The fee itself is not subject to state or state-administered local sales taxes.3Department of Revenue – Taxation. Retail Delivery Fee Rates
Who Is Exempt
Several categories of orders and buyers fall outside the fee:
- Orders where every item is already exempt from Colorado state sales tax, such as most grocery food and prescription medications.
- Buyers who are themselves exempt from state sales tax, including government agencies and qualifying charitable organizations.
- Small retailers whose total Colorado retail sales were $500,000 or less in the prior calendar year. New businesses qualify until their Colorado sales cross that threshold.4Department of Revenue – Taxation. Retail Delivery Fee Retailers
- In-store and curbside pickup, because no delivery occurs.
One important wrinkle: a single taxable item in an otherwise exempt order makes the whole delivery subject to the fee. Order five grocery items plus one taxable cleaning product shipped together, and the $0.28 applies to the delivery.
Retailer Responsibilities
The fee is legally owed by the purchaser, but the retailer or marketplace facilitator that collects the sales or use tax on the transaction is also responsible for collecting and remitting the delivery fee.1Department of Revenue – Taxation. Retail Delivery Fee Retailers may absorb the fee themselves rather than pass it on, but the money still has to be reported and paid to the state.
Retailers subject to the fee must register a separate Retail Delivery Fee account with the Department of Revenue. It is distinct from a standard sales tax account.5Department of Revenue – Taxation. Retail Delivery Fee Accounts
On receipts and invoices, the fee must appear as a separate line item labeled “retail delivery fees.” Returns are filed on Form DR 1786, following the same schedule as the retailer’s sales tax return — monthly, quarterly, or annually — with each return due by the 20th of the month after the reporting period. Once a retailer files a first return, a return is due every period until the account is closed, including periods with zero deliveries.6Department of Revenue – Taxation. Retail Delivery Fee Reporting and Payment
Returns and Refunds
When a customer sends back a delivered item for a full refund, the $0.28 fee is not refunded. The buyer gets back the purchase price and any sales tax, but the delivery fee stays with the state.7Department of Revenue – Taxation. Retail Delivery Fee Refunds
There is one exception. If the sale is canceled before the item ships, the retailer can claim a credit for the fee on a future return, provided the retailer has refunded the full purchase price, the delivery fee, and any sales tax to the buyer. Once the goods are in transit or delivered, the fee is final. A return shipment back to the retailer does not create a new delivery fee, since no new sale occurs.7Department of Revenue – Taxation. Retail Delivery Fee Refunds
Penalties for Late Filing or Nonpayment
A missed filing or payment carries a penalty of the greater of $15 or 10% of the fee owed, plus 0.5% for each month the balance remains unpaid, up to a combined maximum of 18%. Interest accrues on the unpaid balance until it is paid in full. Retailers can request a waiver for good cause.8Department of Revenue – Taxation. Penalties and Interest
Individual period amounts can be small, but they compound across missed returns, and an open account with unfiled returns draws enforcement attention regardless of the dollars involved.
Possible Repeal
Lawmakers introduced HB26-1266 in the 2026 legislative session to eliminate the fee. If the bill passes without a safety clause and the General Assembly adjourns on May 13, 2026, the repeal would take effect on August 12, 2026.9Colorado General Assembly. HB26-1266 Repeal Retail Delivery Fees The bill is still under consideration. Until the repeal is enacted, retailers should keep collecting and remitting the fee as usual.