Colorado Liquor License Cost
Fees, license types, and requirements from the Colorado Liquor Enforcement Division (LED)
How much does a liquor license cost in Colorado?
| Business Type | Scenario | Total Fee | Period | Permits Required |
|---|---|---|---|---|
| Restaurant | Restaurant with full liquor service | $1,600 | first year ($1,100 application + $500 state annual) | HR |
| Restaurant | Restaurant with beer and wine only | $1,536 | first year ($1,100 application + $436 state annual) | BW |
| Bar / Nightclub | Bar or tavern with full liquor | $1,600 | first year ($1,100 application + $500 state annual) | TAV |
| Convenience Store | Liquor store (off-premises retail) | $1,350 | first year ($1,100 application + $250 state annual) | RLS |
| Brewery / Brewpub | Brew pub with taproom and food | $1,850 | first year ($1,100 application + $750 state annual) | BP |
| Distillery | Distillery pub with tasting room | $1,850 | first year ($1,100 application + $750 state annual) | DP |
| Hotel / Resort | Hotel with restaurant and bar | $1,600 | first year ($1,100 application + $500 state annual) | HR |
Colorado's Recently Modernized Licensing System and Expanded Grocery Sales
Colorado alcohol licensing is overseen by the Colorado Liquor Enforcement Division (LED) within the Department of Revenue, along with the state Liquor and Tobacco Licensing Authority. Colorado has approximately 14,000 active liquor licenses. The state underwent significant licensing reform in 2018-2019 when SB 18-243 began phasing in full-strength beer and wine sales at grocery and convenience stores — previously limited to 3.2% ABW beer. The transition completed in 2019, reshaping Colorado's retail alcohol landscape.
Regulatory environment
Colorado has a moderately permissive licensing environment with relatively streamlined processes. The state does not impose population-based quotas on restaurant or bar licenses, making them accessible in all jurisdictions. Colorado distinguishes between hotel/restaurant licenses (H&R), tavern licenses, arts licenses, and various retail licenses. Local licensing authorities (city/county) have significant discretion in granting or denying applications, and both state and local approvals are required. Colorado is one of few states that allows local jurisdictions to set their own alcohol service hours beyond the state minimum.
License availability
Restaurant and bar licenses are non-quota and generally available within 60-90 days of a complete application. Colorado's H&R license (hotel and restaurant) is the standard full liquor on-premise license and is the most commonly issued type. The state's retail liquor store license does not have a population-based quota, though local jurisdictions can impose their own limits. Craft manufacturer licenses (fermented malt beverage manufacturer, limited winery, distillery pub) are readily available and have been popular since Colorado's craft brewing boom. As of 2026, Colorado has over 430 licensed craft breweries, ranking 4th nationally.
What drives costs
Colorado's licensing fees are moderate. A new H&R (hotel and restaurant) license costs approximately $500 in state fees plus $500-$1,000 in local fees, totaling $1,000-$1,500 in the first year. Tavern licenses cost slightly more. Retail liquor store licenses run $227-$468 at the state level. These fees are well below national high-cost states like California and New York. The absence of a quota system means there is no secondary market premium for any license type, which keeps Colorado's total licensing costs among the most affordable for a large Western state.
Application process
Colorado is a dual-licensing state, so the local government processes the application first before forwarding it to the state LED for final approval. Applicants must submit to fingerprinting and a background check, and demonstrate they have no felony convictions within five years and no delinquent state taxes. The H&R license application costs $1,100 at the state level, with local fees typically adding $75 to $500. Citizenship or legal residency is required for all ownership interests. Renewals carry a $250 annual renewal application fee on top of the $500 state license fee, a layered cost structure that surprises first-time renewers.
Common pitfalls and denial reasons
Local licensing authorities are the primary gatekeepers in Colorado, and their discretion means that community opposition at the local hearing stage can derail an application even when the state-level requirements are fully met. H&R license applicants must demonstrate that food service is the primary business — establishments that drift toward bar-only operations risk non-renewal at the local level. Applicants who owe delinquent state taxes are automatically disqualified at the state review stage, a requirement that catches entrepreneurs with prior business tax issues from unrelated ventures.
Local quirks worth knowing
Colorado's 2019 transition to full-strength beer and wine in grocery stores eliminated one of the state's quirkiest laws — for decades, grocery stores could only sell 3.2% ABW beer, a relic of post-Prohibition regulation that made Colorado one of the last states with a "near beer" distinction. Brew pubs are capped at 60,000 barrels per year, a generous ceiling that only the largest craft operations approach. Starting January 2027, grocery stores will also be permitted to sell spirits, completing a decade-long liberalization that has fundamentally reshaped Colorado's retail alcohol market.
Need help getting started? Read our step-by-step licensing guide, or compare Colorado fees with other states using our comparison tool.
Colorado License Types
HR Hotel and Restaurant License $500/yr
Sale of all alcoholic beverages for on-premises consumption at a hotel or restaurant. The most common full-liquor license for food establishments.
State fee: $500/year. Application: $1,100 (state). Renewal: $500 + $250 renewal application fee. Additional local fees apply (typically $75-$500).
TAV Tavern License $500/yr
Sale of all alcoholic beverages for on-premises consumption at a tavern or bar where food service is not the primary business.
State fee: $500/year. Does not require food as primary business. Additional local fees apply.
BW Beer and Wine License $436/yr
Sale of beer and wine (vinous and fermented malt beverages) for on-premises consumption.
State fee: $436.25/year (county) or $351.25 (city). Beer and wine only. Renewal includes $250 application fee.
RLS Retail Liquor Store License $250/yr
Sale of all alcoholic beverages in sealed containers for off-premises consumption (liquor store).
Off-premises only. Sealed containers. Renewal includes $250 application fee.
FMB Fermented Malt Beverage (3.2% Beer) — On/Off Premises $118/yr
Sale of fermented malt beverages (beer) for on- or off-premises consumption at locations like convenience stores.
State fee: $117.50/year. For beer sales at grocery stores, gas stations, etc. Renewal includes $250 application fee.
BP Brew Pub License $750/yr
Manufacture and sale of malt liquor at a brew pub. Includes on-premises consumption and limited off-premises sales.
State fee: $750/year. Production limit: 60,000 barrels/year. Includes taproom sales. Renewal includes $250 application fee.
MFG Manufacturer License (Brewery/Winery/Distillery) $750/yr
Production of alcoholic beverages. Separate license types for beer, wine, and spirits manufacturers.
State fee: $750/year. Federal TTB permit required. Separate retail license needed for taproom/tasting room sales.
DP Distillery Pub License $750/yr
Small-scale distillery with on-premises tasting room and limited retail sales.
State fee: $750/year. Production limits apply. Includes tasting room and retail. Renewal includes $250 application fee.
CLB Club License $309/yr
Sale of all alcoholic beverages for on-premises consumption at a private club or fraternal organization.
State fee: $308.75/year. Members only. Renewal includes $250 application fee.
SE Special Event Permit See details
Temporary permit for the sale or service of alcoholic beverages at a special event.
Per-event permit. $25 state fee + local fees. Limited to specific dates and locations.
Requirements
General Requirements
- Must be at least 21 years old
- Background check and fingerprinting required
- No felony convictions within the past 5 years
- Local government approval required before state application
- Premises must comply with local zoning and building codes
- Must complete responsible alcohol server training
- Citizenship or legal residency required for all owners
- Must not owe delinquent state taxes
Notable Restrictions
- Colorado is a dual-licensing state — both local and state fees apply
- Retail liquor stores were previously limited to one location per owner; this restriction was phased out starting in 2016
- Grocery stores may sell full-strength beer as of 2019, and wine/spirits starting January 2027
- Hotel & Restaurant licenses require food service to be the primary business
- Brew pubs limited to 60,000 barrels/year production
- Local fees vary significantly by municipality — budget for both local and state fees
- $250 annual renewal application fee applies to all renewal types
Frequently Asked Questions
Can I transfer a liquor license in Colorado?
Yes. Colorado allows license transfers, but because Colorado is a dual-licensing state, you need approval from both the local licensing authority and the state Liquor Enforcement Division. The local authority processes the transfer first, which can add time to the process. Expect 60–90 days for a straightforward ownership transfer, longer if there's a change of location.
Are there dry counties in Colorado?
No. Colorado has no dry counties — all 64 counties permit alcohol sales. However, some municipalities within counties may impose local restrictions on hours, types of outlets, or specific license types. Always verify with your local licensing authority, since Colorado's dual-licensing structure means local rules can vary significantly city to city.
Can I sell alcohol on Sundays in Colorado?
Yes. Colorado has no Sunday sales restrictions. On-premise and off-premise establishments can sell alcohol any day of the week. Grocery stores have been able to sell full-strength beer since 2019, and will be permitted to sell wine and spirits starting January 2027 under existing state law.
What's the cheapest type of liquor license in Colorado?
The Fermented Malt Beverage (FMB) license is the cheapest at $117.50/year (state fee), used for beer sales at grocery stores and gas stations. For a restaurant, the Beer and Wine license costs $436/year in state fees — but Colorado's dual-licensing system means you also pay local fees (typically $75–$500). A Hotel and Restaurant full-liquor license runs $500/year in state fees. The $1,100 application fee applies to all new licenses regardless of type.
Do I need a local license in addition to the state license in Colorado?
Yes. Colorado requires both a local and state license for retail establishments — it's a dual-licensing state. You apply locally first; the local authority approves and forwards your application to the state. Local fees are set by each municipality and vary widely, from around $75 in smaller towns to $500+ in major cities. Budget for both when calculating your startup costs.
Sources
Data sourced from the Colorado Liquor Enforcement Division (LED). Last verified 2026-03-26.