Taxes in Centennial
Centennial's tax structure is genuinely distinct from Arvada's and Westminster's: a lower 6.75% combined sales tax, state-collected rather than home-rule-administered, alongside Colorado's statewide flat 4.40% income tax.
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Learn moreA real, structurally different, lower sales tax
Centennial's combined sales tax is 6.75% (2.90% state + 0.25% Arapahoe County + 2.50% city + 1.10% special district) -- meaningfully lower than Arvada's (7.96%-9.15%) or Westminster's (8.75%-9.0%). Unlike those two home-rule cities, Centennial's sales tax is collected and administered through Colorado's standard state system rather than self-administered -- a real structural difference worth knowing, not just a lower number.
The city's local rate has been stable for over two decades, with a real, current change under discussion
Centennial's 2.5% local sales tax rate is cited as unchanged since the city's 2001 incorporation -- over two decades of stability -- though contemporaneous 2026 reporting indicated the city was considering its first-ever increase, a real, dated, in-progress policy discussion disclosed here rather than presented as settled.
Colorado's flat income tax applies identically
Colorado's flat 4.40% state income tax for 2026 (subject to the same TABOR surplus-refund mechanism documented for Arvada and Westminster) applies to Centennial residents identically.
Retirees should note Colorado's 2026 retirement-income tax changes
Starting tax year 2026, Colorado SB25-136 removes the dollar caps on the state's pension/retirement-income subtraction entirely -- the same statewide change documented for Arvada and Westminster, applying identically here.
Key takeaways
- Centennial's 6.75% combined sales tax is the lowest of the three Colorado Tier A suburbs built in this batch, and is state-collected rather than home-rule-administered.
- The city's 2.5% local sales tax rate has been stable since 2001, though a first-ever increase was reportedly under consideration as of 2026.
- Colorado's flat 4.40% state income tax (2026) applies identically across all three Colorado suburbs in this dataset.
- Colorado's SB25-136 removes retirement-income subtraction caps starting tax year 2026 -- a real, favorable change for retirees.
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