Denver is a consolidated city-county in Colorado with its own real property transfer tax structure. Two taxes apply: (1) Colorado's state documentary fee at $0.01 per $100 (0.01%); and (2) the City and County of Denver's real property transfer tax at 1.00% of the consideration. Combined, buyers should anticipate approximately 1.01% of the sale price in transfer-related taxes. The Denver transfer tax applies to all sales within city limits.
Both the state documentary fee and the Denver city transfer tax are customarily paid by the buyer. This distinguishes Denver from many other jurisdictions where the seller is responsible. The obligation can be negotiated, and the purchase agreement should clearly specify who bears each tax. Buyers should factor these costs into their closing budget.
Certain Denver real estate transactions may qualify for exemptions from the transfer tax. Common exemptions include transfers between spouses, transfers to qualifying governmental entities, gifts with no monetary consideration, and certain qualifying nonprofit transfers. Consult the Denver Department of Finance or a local real estate attorney to determine whether your transaction qualifies for an exemption.