Credit card processing and merchant services in Lakewood, CO
Lakewood collects its own 3% sales tax separately from the state's share, so a Lakewood sale is reported to two agencies, and a ZIP code shared with another city can put you in the wrong one.
Lakewood is a home-rule city that sets and administers its own sales tax rules, independent of the State of Colorado, so some transactions are taxed differently here than under state rules. In most of the city the combined rate is 7.5%, and it gets paid in two places. Lakewood's 3% goes directly to the city. The other 4.5%, made up of 2.9% state, 0.5% Jefferson County, 1.0% RTD and 0.1% for the cultural facilities district, goes to the state. On a $120 sale, that's $3.60 to Lakewood and $5.40 to the state.
Check the address before you set the rate. The city says many Lakewood ZIP codes are shared with other cities, so a ZIP code alone can't tell you whether a location is inside Lakewood, and it recommends Colorado's sales tax lookup instead. Some special districts, Belmar among them, carry different rates, and two shopping centers add 0.43% for the Southeast Jefferson County Road Improvement District.
A business with a substantial presence in Lakewood needs a Lakewood Sales and Use Tax License. It costs $20, isn't refundable, and lasts two years. Apply at least 30 days before you start, because a late application brings a $30 charge. The city's 3% use tax applies to taxable purchases that weren't charged city sales tax, and a Lakewood business owes it on purchases other than inventory. Lodging adds the city's 3% accommodations tax, for 10.5% in total in the city's own example.
Lakewood had 156,927 residents in the Census Bureau's July 2025 estimate. Colorado's statewide rules, set out on our Colorado page, apply on top of the city's: credit card surcharges are capped at 2% or your actual merchant discount fee and never touch debit, and most stores taking payment in person must accept cash. Like Denver, Lakewood issues its own license, but its rates and rules are its own.
Picking a surcharge cap means knowing your real per-card cost, and a free statement review gives you that number. Our surcharging program covers Colorado's sign wording and the separate receipt line.
Rules that matter in Lakewood
Lakewood sales tax and license
Lakewood is a home-rule city that administers its own taxing rules, regulations, policies and practices independent of the State of Colorado. In most of the city the combined rate is 7.5%: the city's 3%, paid directly to Lakewood, plus 2.9% state, 0.5% Jefferson County, 1.0% RTD and 0.1% cultural facilities district taxes, which go to the state.
Businesses with a substantial presence in Lakewood need a Lakewood Sales and Use Tax License. The fee is $20, nonrefundable, and the license is valid for two years. Apply at least 30 days before you begin; late applications incur a $30 charge.
Sources: City of Lakewood, Sales and use tax; City of Lakewood, License my business
Use tax, lodging and special districts
Lakewood's use tax is 3%. It applies when city sales tax wasn't paid on taxable purchases used in Lakewood, and businesses located in the city owe it on purchases other than inventory. Lodging carries a 3% city accommodations tax.
Businesses in Belmar and some other special districts have different sales tax rates. Because many Lakewood ZIP codes are shared with other cities, the city recommends Colorado's sales tax lookup to confirm the jurisdiction and rate for an address.
Sources: City of Lakewood, Sales and use tax; City of Lakewood, Other Lakewood taxes
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Common questions
Who gets the sales tax I collect in Lakewood?
Two agencies. Lakewood's 3% is paid directly to the city, and the rest of the 7.5% combined rate (2.9% state, 0.5% Jefferson County, 1.0% RTD and 0.1% cultural facilities) goes to the state. Set up your POS reports to split the two, so each return matches what you collected.
Can I rely on my ZIP code to know if I am in Lakewood?
No. The city says many Lakewood ZIP codes are shared with other cities, so a ZIP code alone won't tell you which city's tax applies. It recommends Colorado's sales tax lookup to confirm the jurisdiction and rate for your exact address. Some special districts, Belmar among them, have different rates as well.
When should I apply for a Lakewood sales tax license?
At least 30 days before you start doing business. The license costs $20, isn't refundable, and is good for two years, and a late application adds a $30 charge. The 4.5% of the combined rate that goes to the state is reported to the state separately.
What is Lakewood's use tax?
A 3% city tax on taxable purchases used in Lakewood when no Lakewood sales tax was paid on them. A business located in the city owes it on purchases other than inventory, which means the fixtures, furniture and tools you use rather than the goods you resell.
What tax does a Lakewood hotel add to a room?
The city lists a 3% accommodations tax on lodging on top of the 7.5% general rate, and its own example puts the total at 10.5%. Program the lodging rate separately from the general one in your property system, and check with the city if your hotel sits in a special district.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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