# Colorado — Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference

For Colorado, trade-in credit allowed is full credit, recorded from its source on 2026-08-20.

- **State:** Colorado _(our reading, not quoted from the source)_
- **Trade-in credit allowed:** full credit _(our reading, not quoted from the source)_

## What the source says

> If the purchaser trades in a motor vehicle they own as part of a transaction to purchase another motor vehicle, the fair market value of the trade-in is excluded from the taxable purchase price, so long as the motor vehicle the purchaser trades in is subject to licensing, registration, or certification.

## Source

- https://tax.colorado.gov/sales-use-tax-topics-motor-vehicle-sales

Last verified: 2026-08-20. Review by: 2027-08-20.
Part of [Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference](https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/).