Lakewood, CO tax rates center on a combined 7.5% sales tax on most retail purchases, which includes the city’s own 3.0% levy on top of state, county, and district taxes.1City of Lakewood, CO. Sales and Use Tax Because Lakewood is a home-rule municipality, it administers and collects its city taxes independently of Colorado’s centralized system.2Lakewood, CO Municipal Code. Lakewood Code 1.2 – Powers Beyond sales tax, property owners, workers, hotel guests, and ticket buyers all face their own local rates.
Sales and Use Tax
The 7.5% combined rate that applies across most of Lakewood is made up of five separate components:3Jefferson County, CO. Frequently Asked Questions – Sales Tax Rates
- City of Lakewood: 3.0%
- State of Colorado: 2.9%
- Regional Transportation District (RTD): 1.0%
- Jefferson County Open Space: 0.5%
- Scientific and Cultural Facilities District (SCFD): 0.1%
Two shopping areas carry different rates. The Belmar district applies only a 1.0% city rate, bringing its combined total to 5.5%. The Marston Park and Belleview Shores centers add an extra 0.43% for the Southeast Jefferson County Road Improvement District, pushing their combined total to 7.93%.1City of Lakewood, CO. Sales and Use Tax
Use Tax
Lakewood also charges a 3.0% use tax when you buy something outside city limits and bring it into Lakewood without paying local sales tax.1City of Lakewood, CO. Sales and Use Tax If you paid sales tax to another Colorado municipality but at a lower rate, you owe the difference.4City of Lakewood. Tax Compliance Guide – Use Tax This commonly comes up with online purchases, out-of-state orders, and items picked up in neighboring cities with lower tax rates.
What’s Exempt
Grocery-type food bought for home consumption is exempt from Lakewood’s city sales tax and the state portion, following Colorado’s definition of eligible food items. Items that don’t qualify include carbonated beverages, candy, prepared salads, cold sandwiches, deli trays, and anything sold hot or marketed for immediate consumption.5City of Lakewood. Sales and Use Tax Rules and Regulations Prescription medications are also exempt.
Digital goods such as e-books, music downloads, and streaming video are treated as tangible personal property under Colorado law and remain taxable. Software delivered electronically is exempt from state sales tax.6Colorado General Assembly. Downloaded Software Exemption Evaluation Summary As a home-rule city, Lakewood’s treatment of digital goods and software may differ from the state’s, so sellers should confirm their obligations with the city’s finance department.
Lodging Tax
Hotels, motels, rooming houses, and short-term rental properties in Lakewood must collect a 7% lodging tax on stays shorter than thirty consecutive days.7City of Lakewood. Taxes and Fees in Lakewood It applies to the full room price and is separate from the 3.0% city sales tax, so guests effectively pay both. Short-term rental hosts using Airbnb, Vrbo, and similar platforms carry the same collection and remittance obligations as traditional hotels.
Admissions Tax
Lakewood imposes a 5% admissions tax on the price of entry to any place or event, including movie tickets, concert tickets, play tickets, and cover charges at clubs.7City of Lakewood. Taxes and Fees in Lakewood The tax applies to every person paying admission, including children regardless of age. Venues and event organizers collect it at the point of sale and remit it to the city.
Occupational Privilege Tax
Lakewood’s Occupational Privilege Tax, often called a head tax, is a flat monthly charge tied to working within city limits. It applies to anyone who earns at least $250 in a single calendar month working in Lakewood. The rate is $2.00 per month for the employee and a matching $2.00 for the employer, for a combined $4.00 per worker each month. Employers withhold the employee portion from paychecks and remit both shares to the city.
The amount doesn’t scale with earnings. A worker making $300 in a month owes the same $2.00 as a worker making $10,000. Because several Colorado cities use the same structure, someone employed in more than one of them can see the tax withheld in each.
Property Tax
Property taxes in Lakewood are calculated with mill levies, not a flat percentage of market value. One mill equals one dollar of tax per $1,000 of assessed value. Your bill combines the levies of every taxing entity that covers your parcel: the city, your school district, fire protection, water, and any special districts. The city’s own mill levy is usually a smaller share of the total than the school district’s.
How Assessed Value Works
The Jefferson County Assessor determines each property’s actual (market) value, then applies a state-mandated assessment rate to produce the assessed value used for tax calculations. Colorado reassesses real property every odd-numbered year.8Colorado Department of Local Affairs. Understanding Property Taxes in Colorado
Starting in 2025, Colorado applies two separate residential assessment rates. For the 2026 tax year, the local government rate is 6.8% and the school district rate is 7.05%.9Colorado Department of Local Affairs. Understanding Property Taxes in Colorado 2026 On a home with an actual value of $500,000, that produces an assessed value of $34,000 for city, fire district, and other local levies, and $35,250 for the school district levy. Each entity’s mill levy is then multiplied against the applicable assessed value.
Exemptions for Veterans and Seniors
Colorado offers a property tax exemption for veterans with a qualifying VA-approved service-connected disability. It covers 50% of the first $200,000 in actual value of the veteran’s primary residence, which must have been owned and occupied as the primary residence as of January 1 of the tax year. Qualifying surviving spouses may also be eligible.10Colorado Department of Local Affairs Division of Property Taxation. Senior Citizen and Veterans With a Disability Property Tax Exemption and Senior Primary Residence Classification
A senior exemption is available through the Jefferson County Assessor’s office, with an application deadline of July 15 in the tax year of application.11Jefferson County, CO. Property Exemptions
Where to Pay
Property taxes in Lakewood are paid to the Jefferson County Treasurer, not the city. The county accepts payments online, by phone, and by wire transfer. Payments drawn directly from a bank account carry no added fee; debit and credit card payments incur vendor and processing fees.12Jefferson County, CO. Payment Options Online and phone payments can take two to four business days to post, but the county credits the date the payment was submitted.
Filing Deadlines and Penalties for Businesses
Because Lakewood is home-rule, businesses file their city sales tax returns directly with Lakewood’s finance department rather than through the state. The state portion (the 4.5% covering Colorado, RTD, SCFD, and Jeffco Open Space) follows the state calendar, with returns due on the 20th of the month following the reporting period.13Department of Revenue – Taxation. Sales Tax Filing Information A return must be filed for every reporting period even when the business had no sales. If the 20th lands on a weekend or holiday, the deadline shifts to the next business day. Lakewood sets its own municipal filing frequency and deadlines, so confirm those with the city’s finance department.
Late payments on Colorado state taxes accrue interest from the original due date at 8% annually if paid before or within 30 days of a deficiency notice, or 11% annually otherwise.14Colorado Department of Revenue – Taxation. Tax Topics – Penalties and Interest Lakewood’s municipal code imposes its own penalties for late remittance, so a business that falls behind can face separate charges from both the city and the state.