Colorado Sales Tax for Photographers

by Dec 31, 2020Sales Tax


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To begin you have to ask yourself 3 questions…


let’s first take a look at what each of these sale tax terms means so that you can understand how it pertains to Photographers in Colorado.
These definitions are laid out below.


So, what’s nexus? The term “nexus” is used in tax law to describe a situation in which a business has a tax presence in a particular state. A nexus is basically a connection between the taxing authority and a business that must collect or pay the tax. It’s possible to have nexus in more than one state especially if you travel to another state to shoot. So you want to be sure you understand the laws of each state you work in.


The source indicates where the sales are taxed.

  • Origin-sourced sales are taxed where the seller is located, so this is based on your zip code.
  • Destination-sourced sales are taxed at the location where the buyer takes possession of the item sold.

Also, keep in mind if the client picks up tangible goods from your location or studio, this is the point where the transaction happens. If you mail or ship to the client, it will be by their zip, not yours.


Any physical products sold to a client, items you can touch and hold like prints, albums, frames, etc…


These are digital items delivered electronically via telephone lines, over the internet, by email, or by another alternative form of non-physical transmission.
Beware of digital prints delivered on a physical device such as a thumb drive or CD as these are no longer digital and are now considered physical because you can touch them.
Services are anything needed to produce the end product, such as shooting, editing, culling, touchup, etc…


Services are anything needed to produce the end product, such as shooting, editing, culling, touchup, etc…


This is any shipping charged by you to your client. Third parties such as album companies who dropship or online
galleries where clients can order prints will take care of their own shipping. But if you charge your client shipping,
this is where the shipping rules in this guide apply to you.

Colorado Sales Tax for Photographers

Below are the sales tax requirements for Photographers in Colorado broken out. You will find supporting links and resources at the bottom of this post.

✅Colorado Nexus

Physical presence; providing service in person, having a
physical location, a warehouse, inventory, traveling salespeople or representatives, attending trade shows, or taking orders or deposits in person.

✅Colorado Source

Colorado uses destination-based sales tax; this means the tax rate is based on the zip code of the buyer’s address or where the buyer took possession of the final goods.

✅Colorado Physical Goods

Yes, tangible/physical goods are taxable in Colorado.

✅Colorado Digital goods

Digitals are not taxable in Colorado

✅Colorado Services

If you list the sitting fee or photograph services separately, they’re not taxable, but if it is part of a lump sum or package price, the entire total is taxable.

✅Colorado Shipping

Shipping is not taxable if listed separately on the invoice. Shipping is taxable if lumped into full-price.

📆Monthly liability / Filing Frequency:

$301.00 and up / Monthly
$16.00-300.00/ Quarterly
$0.00-15.00 / Annual


Due last 20th of the following month



Q1 (JAN – MAR) / APR20
Q2 (APR – JUN) /JUL20
Q3 (JUL – SEP) / OCT20
Q4 (OCT – DEC) /JAN21*(Following year)


JAN-DEC / JAN20 (Following year)


Colorado Department of Revenue

⭐️LookUp Rates
⭐️ Letter regarding sales tax on digital

Have another question you’d like me to add to this list?

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– Tiffany Bastian

Hey Photographer!

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