Colorado Transfer Tax: How the Documentary Fee Works and Who Pays

Colorado does not have a statewide real estate transfer tax like many states. The state charges a documentary fee of one cent per $100 of the sale price (0.01%) instead, which comes to about $50 on a $500,000 home. A few Colorado towns add their own local transfer tax, so your total depends on where the property is.

Key takeaways

• Colorado’s state charge on a deed is a documentary fee of 0.01% of the price.
• Some towns still collect an older local transfer tax, and the state constitution bars new ones.
• Out-of-state sellers may have 2% of the price or net proceeds withheld at closing.
• The cost table below lists each charge that can appear when a deed records.

This article is general education. It is not legal or tax advice. For your own sale, check with your title company, attorney or tax professional.

How Colorado’s state documentary fee works

Who owes the fee

Under C.R.S. 39-13-102, the documentary fee falls on whoever offers a deed for recording with the county clerk and recorder. The fee is based on the consideration, meaning the price paid for the property. It is charged on top of any recording fee.

How the amount is calculated

The same statute sets the math:

• If the consideration is $500 or less, there is no fee.
• Above $500, the fee is one cent for each $100, or major fraction of $100, of the consideration.
• Consideration includes any liens, encumbrances and charges.
• The county clerk and recorder collects the fee.

Once the fee is paid, the clerk marks the recorded deed with the words “State Documentary Fee,” the amount and the date, as required by C.R.S. 39-13-103. You will see that stamp on recorded deeds.

How consideration is measured on a home sale

For residential property, consideration is the amount listed on the deed. If the deed lists no amount, or $500 or less, and a declaration has been filed, the clerk uses the sales price on the declaration (C.R.S. 39-13-102). A deed counts as residential for this fee unless it clearly states otherwise.

Hypothetical examples

These are made-up numbers meant to show the math.

Hypothetical: $550,000 sale. $550,000 ÷ $100 = 5,500 units. 5,500 × $0.01 = $55 documentary fee. Add one deed recording at the flat $43 fee (more on that below) and the state and county charges come to about $98, before any local transfer tax.

Hypothetical: $425,000 sale. $425,000 ÷ $100 = 4,250 units. 4,250 × $0.01 = $42.50.

Hypothetical: the “major fraction” rule. On a $550,075 sale, the extra $75 is more than half of $100, so it counts as another full $100. That gives 5,501 units and a fee of $55.01.

The documentary fee is small. On most Front Range sales, the larger closing costs come from other places, such as title insurance, lender charges and prorated taxes. Our guide to Colorado closing costs covers those.

What gets charged when a Colorado deed records

The recording fee

Since July 1, 2025, Colorado clerk and recorder offices have charged a flat recording fee under HB24-1269. Per El Paso County’s June 30, 2025 notice, the fee is $40 per document regardless of page count, plus a $1 Electronic Recording Technology Board surcharge and a $2 electronic filing surcharge, for a total of $43. That figure comes from the county’s 2025 notice, so confirm the current fee with your county.

The Real Property Transfer Declaration

Under C.R.S. 39-14-102, a Real Property Transfer Declaration must go with any deed presented for recording. Either the grantor or the grantee completes and signs it. The declaration is not recorded. It goes to the county assessor, who uses the sale data in valuing property. Our article on Colorado property taxes explains that side of things.

If the declaration is missing, the deed still records. The assessor notifies the grantee, who then has 30 days to file. The assessor may impose a penalty of $25 or 0.025% of the sale price, whichever is greater.

Local transfer taxes and TABOR

The Taxpayer’s Bill of Rights in the Colorado Constitution, article X, section 20(8)(a), says: “New or increased transfer tax rates on real property are prohibited.”

TABOR did not erase local transfer taxes that already existed. According to the Colorado Legislative Legal Services drafting manual, real estate transfer taxes in place when voters approved TABOR were not abolished, and extending one requires voter approval.

So if your town had a transfer tax before TABOR took effect in 1992, it may still apply. These taxes are set by each town, so rates and rules vary. To find out whether your property is subject to one, ask your title company or call the town directly. The answer should show up on the settlement statement before closing.

If you’re comparing ongoing costs between neighborhoods, also check whether the home sits in a metro district. That cost shows up on the property tax bill, not at the deed recording.

Documentary fee exemptions

C.R.S. 39-13-104 exempts several kinds of documents from the documentary fee, including:

• Deeds where the U.S., Colorado or a political subdivision is the grantor or grantee
• Gift deeds
• Public trustee’s, treasurer’s and sheriff’s deeds
• Confirming or correcting deeds
• Cemetery lots
• Documents that secure a debt, such as deeds of trust
• Court decrees vesting title
• Documents transferring title because of an owner’s death
• Leases, rights-of-way and easements

The exemption must be claimed when the deed is offered for recording. It isn’t applied automatically.

Out-of-state sellers: the 2% withholding rule

If you’re selling Colorado property and your last-known address is outside Colorado, part of your proceeds may be held back at closing. Under C.R.S. 39-22-604.5, the closing or title company must withhold 2% of the sales price or 2% of the net proceeds, whichever is less. The rule also covers foreign corporations with no permanent place of business in Colorado.

No withholding is required if:

• The sales price is $100,000 or less, or
• The seller certifies, under penalty of perjury, that they are a Colorado resident, that the property is their principal residence, or that they will not owe Colorado tax on the gain. The statute lists other exceptions as well.

Hypothetical: nonresident seller. A seller living out of state sells a Colorado home for $600,000 and nets $180,000 after paying off the mortgage and closing costs.

• 2% of the sales price: $12,000
• 2% of net proceeds: $3,600

The lesser amount, $3,600, is withheld toward the seller’s Colorado income tax.

Whether you’ll owe tax on the gain depends on your own situation. Our overview of capital gains tax on real estate covers the basics, and a tax professional can apply them to your sale.

Who pays the documentary fee and local transfer tax?

The statute places the documentary fee on the person offering the deed for recording (C.R.S. 39-13-102). In practice, your purchase contract sets which side pays the documentary fee and any local transfer tax, and the title company’s settlement statement shows the result. Read both instead of assuming one side always pays. A title company prepares that statement and handles the recording.

Seller checklist

1. Ask the title company about local transfer tax. Confirm whether your town charges one and at what rate.
2. Check your contract. See who pays the state documentary fee and any local transfer tax.
3. Sign the Real Property Transfer Declaration. It goes with the deed to the county assessor.
4. Sign the residency certification if it applies. If you qualify for an exception to the 2% nonresident withholding, the title company will need it.
5. Confirm any exemption early. If your transfer qualifies for a documentary fee exemption, make sure it is claimed when the deed is offered for recording.
6. Review every line of the settlement statement. Match the documentary fee, recording fee and any transfer tax to what you expect.

A Trelora agent can walk you through the settlement statement before closing.

Frequently asked questions

Does Colorado have a real estate transfer tax?

Not at the state level in the usual sense. Colorado charges a state documentary fee of one cent per $100 of the price, which is 0.01%. Some towns still collect their own local transfer tax that predates TABOR.

How much is the Colorado documentary fee on a $500,000 home?

About $50. The math is $500,000 ÷ $100 × $0.01. Recording fees and any local transfer tax are separate.

Who pays the documentary fee, the buyer or the seller?

The statute puts the fee on whoever offers the deed for recording. Your purchase contract decides which side actually pays, and the settlement statement shows it. Check both documents for your sale.

How do I find out if my town has a transfer tax?

Ask your title company or contact the town. Any local transfer tax in effect today had to exist before TABOR, which bars new or increased rates. If one applies, it should appear on your settlement statement.

What happens if the Real Property Transfer Declaration isn’t filed?

The deed still records. The assessor notifies the grantee, who has 30 days to file. After that, the assessor may impose a penalty of $25 or 0.025% of the sale price, whichever is greater.