The sales tax in Telluride is 9.47%, combining Colorado’s 2.9% state tax, San Miguel County’s 1%, the SMART regional transit tax of 1.07%, and the town’s own 4.5% municipal tax.1Town of Telluride. Taxes Short-term lodging and marijuana purchases run higher once their additional taxes are layered on. And because Telluride is a home-rule municipality that collects its own 4.5% directly, businesses and remote sellers face a different filing path than they would in most Colorado jurisdictions.
What Makes Up the 9.47%
Four separate taxes apply to retail purchases of tangible goods and taxable services within town limits:
- Colorado state tax: 2.9%2Colorado Department of Revenue – Taxation. Sales Tax Rate Changes
- San Miguel County tax: 1.0%
- SMART regional transit tax: 1.07%, funding bus service and transit infrastructure3San Miguel Authority for Regional Transportation. SMART Ballot Question 3A – Taxes
- Telluride municipal tax: 4.5%, funding the town’s general fund and municipal operations
The SMART piece recently rose from 0.25% to 1.07%, so any older source quoting a lower combined figure is out of date.3San Miguel Authority for Regional Transportation. SMART Ballot Question 3A – Taxes The town collects its 4.5% share itself rather than routing it through the Colorado Department of Revenue.1Town of Telluride. Taxes
Lodging Pushes the Rate to 11.47%
If you’re booking a hotel room, condo, or short-term rental, add Telluride’s 2% Town Lodgers’ Tax to the 9.47% sales tax for an effective rate of 11.47%. The lodgers’ tax took effect January 1, 2022 and applies to any accommodation of twenty-nine consecutive days or less.1Town of Telluride. Taxes
Short-term rental hosts should note one trap: Telluride has no agreement with Airbnb, Vrbo, or similar platforms to collect local taxes on your behalf. You collect the full local tax yourself and remit it through your online Rentalscape account with the town.1Town of Telluride. Taxes A lodgers’ tax license is required.
Marijuana Carries Additional State Taxes
Retail marijuana is taxed more heavily than ordinary goods. Colorado adds a 15% retail marijuana sales tax on top of the 2.9% state sales tax, and a 15% excise tax applies when product moves from a cultivation facility to a store or product manufacturer.4Colorado Department of Revenue – Taxation. Marijuana Sales Tax The excise tax uses the average market rate or the actual sale price, whichever applies.5Colorado Department of Revenue – Taxation. Colorado Department of Revenue Releases AMRs for Retail Marijuana Effective January 1, 2026 The county, SMART, and Telluride local taxes still apply on top of all of that, so dispensary operators need to track each layer separately when filing.
Real Estate Transfer Tax
Telluride imposes a 3% real estate transfer tax on most property sales within town limits where the consideration is more than $500. The tax is calculated on total consideration, which includes cash, the value of any property exchanged, and any outstanding mortgage or lien the buyer assumes.6Town of Telluride. Telluride Municipal Code 4-3-50 – Amount Transfers between co-owners use the same 3% rate, applied to the gross consideration paid to the transferring co-owner.
Payment is due at the time of transfer. Any amount unpaid after thirty days becomes delinquent, and a 15% delinquency penalty attaches to the unpaid balance.6Town of Telluride. Telluride Municipal Code 4-3-50 – Amount On Telluride prices, 3% is a meaningful line item, so account for it early in closing.
Use Tax on Out-of-Town Purchases
Telluride’s use tax applies at the same 4.5% rate as the sales tax when goods bought elsewhere are brought into town for use, storage, or consumption. Two situations trigger it most often:
- Construction materials. Contractors building within town limits owe use tax on materials sourced from outside Telluride. The town has specific construction and building use tax provisions in its code.
- Vehicles. A separate vehicle use tax applies when you buy a car outside Telluride and register it in town.
Because the town collects the use tax itself, self-reporting is on the buyer. Construction projects pulling materials from multiple regional vendors are a common audit finding.
Exemptions and the Grocery Rebate
The usual exemption categories apply under the Municipal Code: sales to government agencies, qualifying charitable organizations, and certain healthcare items including prescription drugs under Colorado’s broader framework.
Groceries are the detail residents should know. Colorado exempts most food for home consumption from the state sales tax, but Telluride’s 4.5% local tax still applies to grocery purchases. The town runs a rebate program to help year-round residents offset that cost. Eligibility details come from the town’s Finance Department.
Collecting and Remitting as a Business
Anyone doing business within Telluride’s town limits or in the Lawson Hill area must obtain a business license.7Town of Telluride. Business Licenses If you sell taxable goods or services, you also need a separate sales tax license, which uses the same application process.
Here is the part that catches Colorado businesses off guard. Telluride is a self-collecting home-rule municipality, so you remit the 4.5% local tax directly to the town’s Finance Department rather than through the Colorado Department of Revenue.1Town of Telluride. Taxes Telluride does not participate in Colorado’s Sales and Use Tax System (SUTS), so the streamlined state portal won’t cover your Telluride obligation.8Colorado Department of Revenue. SUTS – Non-Participating Jurisdictions You’ll file twice: once with the state, once with the town.
Marketplace Sellers
Colorado law requires marketplace facilitators like Amazon and Etsy to collect state and state-administered local sales taxes for their sellers.9Colorado Department of Revenue – Taxation. Marketplace Facilitators Telluride’s tax is not state-administered. Because the town self-collects and sits outside SUTS, marketplace facilitators may not automatically collect and remit the 4.5% local tax on orders delivered into town. If you sell through a platform, confirm with Telluride’s Finance Department whether a separate collection obligation applies to you.
Filing Deadlines and Penalties
Your Telluride filing frequency depends on how much local tax you remit per month, and the town requires three consecutive months at a threshold before your frequency shifts:
- Annually: $10 or less per month
- Semi-annually: $10 to $20 per month
- Quarterly: $20 to $40 per month
- Monthly: $40 or more per month
These are based on local tax collected, not total sales.10Town of Telluride. Finance Department Collecting $40 in Telluride’s 4.5% tax works out to roughly $889 in monthly taxable sales, so most retail storefronts file monthly during peak season. A return is required for every period, even one with zero sales.
State filing follows different thresholds: monthly at $600 or more in state tax per month, quarterly under $600, and annual at $15 or less per month.11Colorado Department of Revenue – Taxation. Sales Tax Filing Information State returns are due by the 20th of the month after the reporting period. Your state and local frequencies can land on different schedules.
Late filings and underpayments draw both penalties and interest. The state penalty for failing to file or pay is the greater of $15 or a percentage of the tax due. For 2026, interest on unpaid state tax runs at 8% if you pay before receiving a deficiency notice or within 30 days of one, and 11% if you don’t, compounding daily from the original due date.12Colorado Department of Revenue – Taxation. Tax Topics – Penalties and Interest Telluride has its own penalty and interest provisions in the Municipal Code, and the town can place a lien on property for unpaid tax, pursue civil action, or issue a jeopardy assessment against a business it believes may leave town without paying. With a small Finance Department watching accounts directly, delinquencies tend to be flagged quickly.