Colorado Retail Delivery Fee Increases to 31 Cents
Retailers must update their systems to account for the state-mandated fee applied to motor vehicle deliveries.
Updated on Oct. 24, 2026 in Inflation
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Colorado increased its state-mandated retail delivery fee to 31 cents per order effective July 1, 2026. This charge applies to deliveries of taxable items by motor vehicles, impacting all retailers making online sales in the state.
Why it matters
The annual rate adjustment aims to fund state transportation projects such as roads, bridges, and public transit. Operators must account for this increased cost in their pricing models or tax collection processes, as they are required to specifically label the charge as a Retail Delivery Fee on customer receipts.
The retail delivery fee is now 31 cents, a 3-cent increase from the 28-cent rate charged in the prior period. This state-mandated fee remains in effect for all qualifying retail transactions through June 30, 2027.
The players
Colorado Department of Revenue
The state agency responsible for tax administration and the annual adjustment of the retail delivery fee.
The details
The fee applies to any online order containing at least one taxable item delivered by motor vehicle, including those fulfilled by third-party services or the US Postal Service. Retailers are not required to absorb this cost and may pass the 31-cent charge directly to the customer. When passed on, the line item must be clearly labeled as a Retail Delivery Fee on the transaction receipt to ensure compliance with state disclosure rules.
Timeline
July 2022: Colorado introduced the retail delivery fee at 27 cents.
July 1, 2026: The retail delivery fee increased to 31 cents.
June 30, 2027: The current 31-cent fee period ends.
Market Landscape
This adjustment follows the funding framework established by Senate Bill 21-260, which authorized the creation of the fee in 2021. The state continues to utilize this model to secure dedicated revenue for public infrastructure improvements and air pollution reduction.
Retailers must update their point-of-sale systems to reflect the new 31-cent fee to ensure accurate tax collection and compliance. Operators should review their delivery pricing structures to determine if they will absorb this cost or continue passing it on to consumers as a labeled receipt item.
The takeaway
The state’s annual inflation adjustment mechanism ensures that delivery fees keep pace with the costs of funding transportation infrastructure. Owners should monitor future Department of Revenue announcements for any subsequent rate changes scheduled after the current window concludes on June 30, 2027.
Further reading
Learn more about the latest shifts in Inflation and how they affect operating costs.
Source note: This article includes information reported by The Scottish Sun.
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