Costs of Selling Land in Colorado
Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.
- Cash offer in 24 hours
- No fees or commissions
- We pay closing costs
- Close in as few as 7 days
Seller Costs in Colorado at a Glance
| Cost | Typical amount | Who usually pays |
|---|---|---|
| State transfer tax | None | Not applicable |
| Documentary fee | $0.01 per $100 of price over $500 | Set by the contract |
| Town transfer tax | Only in some home rule towns; ask the town clerk | Set by town law and the contract |
| Deed recording fee | $43 flat per document (El Paso County, from July 1, 2025) | Set by the contract |
| Title insurance | Varies by company; get a quote | Set by the contract |
| Closing fee | Varies by company; get a quote | Set by the contract |
| Prorated property taxes | Your share for the months you owned the land | Seller for their months; back taxes paid from the sale |
| Federal capital gains tax | 0%, 15% or 20% on long-term gain (held more than 1 year); regular income rates if held 1 year or less | Seller, on the tax return |
| State income tax on the gain | Flat 4.4% for tax year 2025 | Seller, on the tax return |
Example: Seller Costs on a $25,000 Land Sale
- Sale price
- $25,000
- State transfer tax
- $0
- Documentary fee ($0.01 x 250), if the contract assigns it to the seller
- $-2.50
- Net before title, closing, recording, prorated taxes and income tax
- $24,997.50
$25,000 / $100 = 250. 250 x $0.01 = $2.50. $25,000 minus $2.50 = $24,997.50. Title, closing and recording costs depend on the company, the county and the contract, so they are not shown. A town transfer tax applies only inside some towns. Capital gains tax depends on your basis and income.
Selling Costs in Colorado: What to Know
Colorado has no state real estate transfer tax. It charges a small documentary fee of one cent for each $100 of the price when the deed is recorded. A few towns add their own transfer tax. Sellers also pay title and closing costs set by the contract, their share of property taxes, and tax on any gain.
This page lists each cost, who usually pays it, and where the number comes from. A worked example shows a $25,000 land sale. If you want to skip most of these costs, you can get a cash offer for your Colorado land.
The Colorado documentary fee, not a transfer tax
Under C.R.S. 39-13-102, the county clerk and recorder collects a documentary fee on deeds that convey land. The fee is $0.01 per $100 of the price when the price is more than $500. There is no fee on a price of $500 or less. The El Paso County Clerk and Recorder lists this fee.
On a $25,000 sale the fee is $2.50. The fee is charged when the deed is recorded, and the contract decides who pays it.
Town and city transfer taxes
Colorado has no statewide transfer tax, but a small number of home rule towns, mostly in mountain resort areas, charge their own real estate transfer tax. Rates and exemptions differ by town. If your land is inside town limits, ask the town clerk or your title company before you sign. Most rural land is outside town limits and pays only the documentary fee.
Recording fees
The El Paso County Clerk and Recorder charges a flat $43 per document, no matter how many pages, starting July 1, 2025, under state law HB24-1269. Check your county clerk and recorder for the current fee.
Who pays what by custom
Colorado law does not assign title insurance, closing fees or recording fees to one side. The purchase contract decides who pays each item. Read the closing cost section of the contract before you sign.
The seller pays to clear their own liens and any unpaid property taxes, because the buyer needs clear title.
Title company or attorney
Most Colorado sales close through a title company. The title company holds the money, records the deed, and pays off liens and back taxes. An attorney is not part of a normal Colorado closing, but you can hire one.
Closing fees and title insurance premiums vary by company. Ask for a written quote before you sign.
Prorated property taxes
Property taxes are split at closing so each side pays for the part of the year they owned the land. Your settlement statement shows the credit or charge. Any back taxes are paid from the sale proceeds at closing.
Capital gains tax basics (federal and Colorado)
You owe tax on the gain, not on the full price. The gain is the sale price minus your basis (what you paid plus improvements) and minus your selling costs. The IRS explains basis in Topic 703.
If you owned the land for more than one year, the federal gain is long-term and is taxed at 0%, 15% or 20%, based on your taxable income. For 2025, a single filer pays 0% on long-term gains when taxable income is $48,350 or less. Land held one year or less is taxed as regular income. See IRS Topic 409.
Colorado taxes income at a flat rate. The Colorado Department of Revenue lists 4.4% for tax year 2025 and 4.25% for 2024. The same guide describes a capital gain subtraction that some taxpayers can claim on qualifying gains. Check the department's guidance to see if your land sale qualifies.
The closing agent usually reports the sale to the IRS on Form 1099-S. This page is general information, not legal or tax advice. Confirm the numbers with your closing agent or a tax professional.
How selling to a cash buyer changes the costs
A listing with an agent adds a commission on top of the costs above. When you sell to EasyLotBuyer, there are no fees or commissions, and we pay the closing costs. You get a cash offer within 24 hours and can close in as few as 7 days.
We also buy land with back taxes, liens, title issues or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale, so you do not need cash up front. Your capital gains tax is still your own, so keep your closing statement for your tax return.
- No agent commission
- No closing costs for you: we pay them
- Back taxes paid at closing from the sale
- Cash offer within 24 hours
Sources
Rules and fees change; check with the county before you act on them.
Selling Cost Questions in Colorado
Does Colorado have a real estate transfer tax?
There is no state transfer tax. The county collects a documentary fee of $0.01 per $100 of the price over $500. Some towns charge their own transfer tax.
How much is the documentary fee on a $25,000 land sale?
$2.50. That is one cent for each $100 of the price.
How much does it cost to record a deed in Colorado?
El Paso County charges a flat $43 per document from July 1, 2025. Check your own county clerk and recorder.
What is the Colorado capital gains tax rate on land?
Colorado taxes gains as income at a flat rate, 4.4% for tax year 2025. Some gains may qualify for a subtraction. This is not tax advice.
Do I need an attorney to sell land in Colorado?
Most sales close through a title company without an attorney. You can still hire one.
Who pays closing costs when I sell land to EasyLotBuyer?
We do. There are no fees or commissions, and back taxes are paid at closing from the sale.