Colorado STR Regulations
CO Statewide Tax requirements
Colorado does not have a single statewide short-term rental (STR) law. Instead, regulations are set locally, so each county or city may establish its own rules. These can include permits, licensing, occupancy limits (such as Denver’s potential 90-day cap), and local lodging taxes collected through a lodger’s tax ID. Homeowner associations (HOAs) may also add their own restrictions through covenants.
All short-term rental owners in Colorado are subject to the state’s property tax, as well as state and local lodging taxes. This includes cleaning fees and is administered by the Colorado Department of Revenue. Additional tax rates vary depending on county/city tax authorities. Property owners should confirm requirements with both their local jurisdiction and the state to ensure compliance.
Helpful STR Tax Links
Have tax questions? Get more helpful resources in the COSTRA member portal.
Colorado Short-Term Rental Rules & Regulations
-
No statewide STR law – Colorado does not regulate STRs at the state level. Rules are set by individual counties and municipalities.
-
Local regulations vary widely – Some cities limit the number of rental nights per year (e.g., Denver’s potential 90-day cap), require a primary residence, or mandate specific occupancy limits.
-
Permits & licenses – Many local governments require STR operators to apply for a license or permit and renew it annually. Operating without one can lead to fines or revocation.
-
Local lodging taxes – Cities and counties often charge lodging or accommodation taxes. Hosts typically need a lodger’s tax ID to remit these.
-
HOA restrictions – Homeowner associations (HOAs) can prohibit or limit STRs through covenants, so always review community rules before renting.
-
Statewide sales tax – A 2.9% sales tax applies to all stays of 29 nights or fewer, including the nightly rate, cleaning fees, and other charges. This is collected and enforced by the Colorado Department of Revenue.
-
Platform collection – Some booking platforms (like Airbnb and Vrbo) collect and remit certain state or local taxes automatically, but hosts are still responsible for verifying compliance.
-
Stay compliant – Requirements can change quickly at the local level. Always confirm the latest rules with your city/county government and the Colorado Department of Revenue.
Additional Questions?
For all questions specific to your property, permit/registration, or taxes, consult the appropriate government authority.
Have regulation questions about your municipality? Chat with other COSTRA members in COSTRA’s member discussion forums.
Get Regulatory Updates and Resources
Get Robust Member Resources
COSTRA members get additional support and guidance on regulatory matters inside our members-only portal. There, you can also connect directly with other hosts to learn even more helpful insight and recommendations.