City of Westminster, Colorado implements 4.25% sales tax rate beginning January 1, 2026
Written by Alex Lamachenka
Head of DemandGen
Published
What’s changing
Ballot Measure 3H passed, authorizing a 0.4 percent increase to the existing city rate. New rate effective January 1, 2026:
- City sales and use tax: 4.25% (up from
3.85%)
Revenue will fund:
- Staffing for new and existing fire/EMS stations
- Construction of a new Central Westminster fire station
- Rebuild of Fire Station 3
- Emergency vehicles and equipment
- At least $2 million annually for neighborhood street improvements
Westminster is a Colorado home-rule city, meaning its tax is administered and collected independently from the Colorado DR 1002 system.
Who this affects
- Remote sellers with Colorado economic nexus
- Marketplace facilitators
- Colorado retailers filing in home-rule jurisdictions
- Anyone using manual tax overrides or city-specific rate tables
Under-collecting after January 1 will create calculations and filing discrepancies with Westminster’s Tax & Revenue Division.
Why this matters
Colorado home-rule cities impose their own rates, returns, audits, and deadlines. If your system does not automatically update city-level rates, you may:
- Under-collect tax
- Receive discrepancy notices
- Trigger interest and penalty assessments
- Disrupt marketplace reporting flows
Because this is a voter-approved increase with a fixed start date, there is no grace period.
If you use TaxCloud
Your Westminster rate will update automatically to 4.25% on January 1, 2026. No manual edits required.
Next steps
- Update POS, ERP, and checkout rate tables
- Confirm ZIP/address rules for Westminster boundaries
- Review marketplace or ecommerce overrides
- Ensure January 2026 filings reflect the new 4.25% rate
Official sources:
-
1.
Westminster Official Website Source link
Disclaimer
TaxCloud provides sales tax compliance solutions. We do not provide legal or tax advice. For questions about your specific tax situation or filing requirements, we recommend consulting a qualified sales tax accountant.
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