Does Colorado have a real estate transfer tax?

Colorado does not have a traditional statewide transfer tax. Instead it charges a documentary fee of 1 cent per 100 dollars of consideration, which is very low. A 500,000 dollar sale generates only a 50 dollar state documentary fee.

Are there local transfer taxes in Colorado?

Yes, in a small number of municipalities. Resort towns such as Aspen, Vail, Breckenridge, and Telluride levy their own real estate transfer taxes, often 1 to 3 percent, grandfathered in before a 1992 state constitutional ban on new local transfer taxes.

Is any transfer exempt from the documentary fee?

Transfers where the total consideration is 500 dollars or less are exempt from the state documentary fee. Gifts, certain family transfers, and transfers with no money changing hands typically fall under this exemption.

Who pays the documentary fee?

The documentary fee is paid to the county clerk and recorder when the deed is recorded. By custom it is usually paid by the seller, though the parties can agree otherwise in the purchase contract.

How does this compare to other states?

Colorado's 0.01 percent documentary fee is among the lowest real estate transfer charges in the country. Many states charge transfer taxes of 0.5 to 2 percent, so a Colorado closing is far cheaper on this line item.

Colorado Real Estate Transfer Tax Calculator

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Colorado has no traditional statewide transfer tax — instead it charges a tiny documentary fee of 1 cent per $100 of consideration. A few resort towns add their own local transfer tax. This tool calculates both.

How it works

The state documentary fee is a flat per-$100 rate, with an exemption for very small transfers:

if consideration ≤ $500   →  documentary fee = $0 (exempt)
otherwise                 →  documentary fee = consideration × 0.0001
local transfer tax        =  consideration × local rate
total                     =  documentary fee + local transfer tax

A rate of $0.01 per $100 is the same as 0.0001 (0.01%).

Example

A $500,000 home generates a state documentary fee of 500000 × 0.0001 = $50. In a town with a 2% local transfer tax, that adds 500000 × 0.02 = $10,000, for a total of $10,050.

Notes

Only municipalities that had a transfer tax before the 1992 constitutional ban may charge one — Aspen, Vail, Breckenridge, Telluride, and a few others. By custom the documentary fee is paid by the seller at recording, though contracts can shift it.