Colorado specific ownership tax calculator

What the specific ownership tax is

Colorado's specific ownership tax is an annual tax on classified personal property, the vehicles that must be registered. Section 42-3-106 says the owner of each item of classified personal property "shall pay an annual specific ownership tax unless exempted," computed under section 42-3-107 "in lieu of all annual ad valorem taxes." In other words, it replaces the general property tax on the vehicle. The tax is paid with registration at the county, and the statute provides that the department apportions the money to counties.

The statute sorts vehicles into classes. Class A is a vehicle used as an interstate commercial carrier with apportioned registration. Class B is a truck, truck tractor, trailer or semitrailer used to transport property that is not Class A. Class C is "every motor vehicle not included in Class A or Class B," which covers passenger cars and most SUVs and vans. Class D is utility, camper and multipurpose trailers and trailer coaches. This calculator implements Class C.

Taxable value: 85 percent of MSRP

For Class C and Class D property, subsection 107(9)(a) sets the taxable value at eighty-five percent of the manufacturer's suggested retail price, not including applicable federal excise tax, transportation or shipping costs, or preparation and delivery costs. Dealers furnish the MSRP on the title application for each new vehicle sold and delivered in Colorado. If a vehicle bought outside Colorado is registered for the first time in Colorado and the MSRP is not available, the department's agent sets the taxable value from a compilation of values furnished by the department. Under section 106(4) the taxable value "shall not change" for the life of the vehicle, so what falls over time is the rate, not the base.

Rate by year of service

The Class C schedule in subsection 107(10)(a) is a graduated rate on the taxable value: 2.10 percent in the first year of service, 1.50 percent in the second, 1.20 percent in the third, 0.90 percent in the fourth, 0.45 percent in each of the fifth through ninth years, and a flat $3 for the tenth and each later year. The first year of service is not the year you bought the vehicle. Section 106(4) says that regardless of the date of acquisition, the year of manufacture, or the year the manufacturer designated it as a current model, is the first year of service. A 2024 model year vehicle registered in 2026 is therefore in its third year and is taxed at 1.20 percent even if you bought it used this month.

Worked example

Take a vehicle with a $42,000 MSRP. The taxable value is 85% x $42,000 = $35,700. In the model year it is taxed at 2.10 percent: $749.70. In the second year it is 1.50 percent, or $535.50. In the third year the 1.20 percent rate gives $428.40, in the fourth year 0.90 percent gives $321.30, and in each of the fifth through ninth years 0.45 percent gives $160.65. From the tenth year, a 2017 model year vehicle registered in 2026 pays $3.00. Compare that with the first year: the tax falls by more than 99 percent over a decade on the same taxable value.

Military and rental provisions

The statute lets an owner who is a member of the United States armed forces with orders to serve outside the United States pay $1 for each full year under paragraph 107(10)(b) for a vehicle less than ten model years old, provided the owner shows the orders and files an affidavit that the vehicle will not be operated on a highway. Rental companies whose primary business is renting vehicles for periods under forty-five days may elect to collect a specific ownership tax of 2 percent of the rental payment subject to sales tax instead. These are outside the scope of the calculator.

What the estimate leaves out

The page covers only the tax computed under section 42-3-107. Colorado registrations also carry other fees, such as registration fees by weight, road safety and bridge fees, license plate fees, and county or city add-ons, which are separate and which the statute sections used here do not list. Sales or use tax on a purchase is separate too. The statute text used is the 2024 edition of the Colorado Revised Statutes, an uncertified printout from the General Assembly; a later session may have changed a rate, so confirm with your county motor vehicle office before you budget.

Sources

• Colorado Revised Statutes 2024, Title 42, section 42-3-106 (Tax imposed; classification; taxable value) and section 42-3-107 (Taxable value of classes of property; rate of tax), uncertified printout: classes of personal property, 85 percent of MSRP for Class C, the graduated Class C schedule in subsection 107(10), military provisions in 107(10)(b), first year of service in 106(4). Read November 2, 2026.

Official handoff: Colorado Department of Revenue, Division of Motor Vehicles. Figures on this page were read from the sources above on November 2, 2026 and can change when the legislature or agency updates them; always confirm the amount with Colorado DMV before paying. This page summarizes public sources and does not replace them.