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Aircraft tax · United States

Colorado aircraft sales and use tax

Colorado charges 2.9 percent state sales or use tax on aircraft plus local tax, with a nonresident exemption if the aircraft leaves within 120 days. Permanently installed aircraft parts are exempt, and personal aircraft pay a fuel excise tax instead of yearly property tax.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in Colorado?

Taxed. 2.9 percent state sales tax, plus state-administered local sales taxes for the location. Home-rule cities collect their own sales tax under their own rules.

Do you owe use tax on an aircraft bought outside Colorado?

Depends. An owner who relocates an aircraft into Colorado generally owes Colorado consumer use tax on it. Sales or use tax legally imposed and paid in another state is credited; tax paid to a foreign country is not.

What aircraft sales tax exemptions does Colorado have?

Depends. A sale to a nonresident is exempt if the aircraft leaves Colorado within 120 days of the sale, or 30 days after work done as part of the sale, whichever is later, and is not hangared or parked overnight in Colorado more than 73 days in any of the next three calendar years. The buyer signs an affidavit. Aircraft bought by a scheduled commercial airline for interstate use are exempt; on-demand operators do not qualify.

Are aircraft rentals taxed in Colorado?

Depends. Aircraft leases and rentals are generally retail sales subject to sales tax. A lease of 36 months or less is exempt if the owner already paid Colorado sales or use tax on the aircraft; an owner that bought the aircraft tax-free for leasing collects tax on every payment instead.

  • In general, aircraft leases are considered retail sales and are subject to Colorado and state-administered sales and use taxes.

    Colorado Department of Revenue, Sales & Use Tax Topics: Aircraft · document dated Revised July 2026 · checked October 18, 2026

  • However, a lease for a term of 36 months or less (a “short-term lease”) is tax-exempt if the lessor has paid Colorado sales or use tax on the acquisition of the leased property.

    Colorado Department of Revenue, Colorado Sales Tax Guide, Part 1 · document dated Revised May 2026 · checked October 18, 2026

  • A lessor may submit a completed Lessor Registration for Sales Tax Collection (DR 0440) to the Department to request permission to acquire tangible personal property tax-free for short-term lease on the condition that the lessor agrees to collect sales tax on all lease payments received on the property.

    Colorado Department of Revenue, Colorado Sales Tax Guide, Part 1 · document dated Revised May 2026 · checked October 18, 2026

Is flight instruction taxed in Colorado?

Not clearly published. Colorado generally does not tax services, but the Department's aircraft and sales tax publications do not address flight instruction or the aircraft rental inside a lesson. How a lesson that includes aircraft time is treated is not published.

Are aircraft parts and maintenance labor taxed in Colorado?

Depends. Parts permanently installed as a component of an aircraft, such as fuselage and engine parts, are generally exempt. Colorado generally does not tax services, so repair labor that is separate from a sale of taxable goods is not taxed. Home-rule cities set their own rules.

Does Colorado register or tax aircraft every year?

None. No yearly aircraft property tax for personal aircraft: they pay a fuel excise tax instead. Some commercial aircraft also pay the fuel tax instead, while airline companies are assessed by the state as public utilities. No state aircraft registration fee was found.

AerScheduler can add sales tax, at the rates you set, to the invoices you raise for parts, labor and other charges, taxing only the lines your state taxes. How it works

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