Are Food and Meals subject to sales tax?
While Colorado's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of food and meals in Colorado, including catering and grocery food. To learn more, see a full list of taxable and tax-exempt items in Colorado.
In the state of Colorado, any gratuities that are distributed to employees are not considered to be taxable.
In the state of Colorado, while most items are considered to be exempt, some specific types of food are considered to be taxable. This includes any carbonated water, chewing gum, seeds and plants which can grow food, prepared salads and salad bars, cold sandwiches, deli trays, candy, soft drinks and any hot or cold beverages which were served in unsealed cups through the use of a vending machine.
Back to Colorado Sales Tax Handbook