Gypsum, CO Sales Tax: Rate, Exemptions, and Use Tax

The sales tax rate in Gypsum, Colorado is 7.4%. That total is built from a 2.9% Colorado state tax, a 1.5% Eagle County tax, and a 3.0% Town of Gypsum tax, all collected together by the Colorado Department of Revenue and then distributed back to the local jurisdictions.¹

How the 7.4% Breaks Down

Three overlapping taxes combine into the single rate you see at the register in Gypsum.

Colorado state tax of 2.9%, applied statewide on retail sales of tangible personal property.
Eagle County tax of 1.5%. One percent funds county general operations and capital projects, and the remaining half-percent is dedicated to trails and mass transit.²
Town of Gypsum tax of 3.0%, funding town services and infrastructure.

One boundary is worth flagging. The Eagle Valley Regional Transportation Authority tax covers much of the surrounding county but does not apply inside the incorporated Town of Gypsum, so purchases in town are not subject to an added RTA line.¹ Transit funding for county residents is folded into the county’s 1.5%.

Gypsum is a state-collected town rather than a home-rule city. That means retailers do not file or pay anything separately to the town. The Department of Revenue handles collection for all three layers and routes the local shares back through the state’s unified system.³

What Is Taxed and What Is Exempt

Colorado taxes retail sales of tangible personal property. Think furniture, electronics, building materials, clothing. Services are generally not subject to Colorado sales tax, which can surprise people arriving from states that tax things like landscaping or auto repair.⁴

Groceries

Grocery food purchased for home consumption is exempt from the 2.9% state sales tax. The exemption covers items eligible for purchase with food stamps or WIC vouchers, along with seeds and plants that produce food for human consumption.⁵ Colorado local jurisdictions may choose to tax food at the local level even when the state exempts it, so the county and town portions can still apply to your grocery bill depending on local ordinance.

Residential Energy and Prescription Drugs

Energy used in a home, including electricity, natural gas, propane, wood, coal, and fuel oil, is exempt from state sales tax. Non-residential energy use, such as electricity for a commercial building, may still be taxable.⁶ Prescription drugs are also exempt.

Use Tax on Untaxed Purchases

Colorado imposes a use tax when you buy a taxable item without paying the full local sales tax. The typical case is an online purchase from a seller that did not collect the Gypsum rate, or an item bought in a lower-tax jurisdiction and brought home. The use tax rate mirrors the sales tax rate, and Gypsum’s 3.0% use tax appears on the DR 1002 schedule alongside its sales tax.¹ The town also applies a use tax to residential construction based on a percentage of the project’s valuation. Consumers generally report use tax on their Colorado income tax return; businesses report it through their sales tax filings.

For Businesses Collecting the Tax

Sales Tax License

Any business making retail sales in Gypsum needs a Colorado Sales Tax License before its first transaction. The license covers both retail and wholesale activity, so a business doing both only needs one.⁷ Because Gypsum is state-collected, the state license is the only sales tax license required. There is no separate municipal sales tax license from the town.⁴ Renewal costs $16 per physical location.⁸ Gypsum may have its own separate general business licensing beyond the sales tax license, so check with the town directly on that.

Filing Frequency

How often you file depends on how much state sales tax you collect each month.

$600 or more per month: file monthly, due the 20th of the following month.
Under $600 per month: file quarterly, due April 20, July 20, October 20, and January 20.
$15 or less per month: file annually, due January 20.

If the 20th falls on a weekend or holiday, the deadline shifts to the next business day. Businesses paying more than $75,000 per year in state sales tax must pay by Electronic Funds Transfer.⁹ File a return for every period even when you made no sales and owe nothing.¹⁰

How to File

Filing runs through the state’s Sales and Use Tax System (SUTS), which submits returns for state, state-collected, and participating home-rule jurisdictions in a single filing.¹¹ Because Gypsum is state-collected, its 3.0% is included automatically when you file. Start with gross sales for the period, subtract exempt sales such as groceries or sales to tax-exempt organizations, then report net taxable sales on Form DR 0100 using Gypsum’s site code so the local portion is allocated correctly.¹² Payment options include direct bank withdrawal through the portal or a mailed check with a printed voucher. Save the confirmation number as your filing receipt.

Service Fee Change for 2026

Colorado previously allowed retailers to keep a small percentage of the state sales tax as a service fee for timely filing. That is gone. As of January 1, 2026, retailers may no longer retain the state sales tax service fee.¹³ The Town of Gypsum’s 3.0% portion still allows a 3.33% service fee for timely filers according to the DR 1002 schedule, so a small local benefit remains on the municipal share.¹

Penalties and Records

Filing late or paying short triggers a penalty of 10% of the tax due, with a $15 minimum, plus an additional 0.5% for each month the balance remains unpaid, up to a combined 18%. Interest accrues on top until the balance is paid.¹⁴ The math compounds quickly, and missing a deadline by several months can nearly double what you owe. Colorado requires retailers to keep books, accounts, and sales records for at least three years, including invoices, exemption certificates, and register tapes.¹⁰ Without those records, you cannot defend your reported numbers in an audit.

1
Colorado Department of Revenue. DR 1002 Colorado Sales/Use Tax Rates January 2026
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Eagle County Government. Sales Tax
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Colorado Department of Revenue – Taxation. Sales Tax Guide
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Department of Revenue – Taxation. How to Apply for a Colorado Sales Tax License
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Colorado Department of Revenue. FYI Sales 4 – Taxable and Tax Exempt Sales of Food and Related Items
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Colorado Department of Revenue. Sales and Use Tax Topics – Residential Energy Use
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Colorado Department of Revenue – Taxation. Standard Retail License
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Colorado Department of Revenue – Taxation. Renew Your Sales Tax License
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Colorado Department of Revenue – Taxation. Sales Tax Filing Information
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Colorado Department of Revenue. Colorado Retail Sales Tax Return – General Information
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Colorado Department of Revenue – Taxation. Sales and Use Tax System
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Department of Revenue – Taxation. Retail Sales Tax Return
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Colorado Department of Revenue – Taxation. Service Fee
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Colorado Department of Revenue – Taxation. Penalties and Interest