This paper describes the development of a new uncertainty estimator for slitting method residual stress measurements. The new uncertainty estimator accounts for uncertainty in the regularization-based smoothing included in the residual stress calculation procedure, which is called regularization uncertainty. The work describes a means to quantify regularization uncertainty and then, in the context of a numerical experiment, compares estimated uncertainty to known errors. The paper further compares a first order uncertainty estimate, established by a repeatability experiment, to the new uncertainty estimator and finds good correlation between the two estimates of precision. Furthermore, the work establishes a procedure for automated determination of the regularization parameter value that minimizes total uncertainty. In summary, the work shows that uncertainty in the regularization parameter is a significant contributor to the total uncertainty in slitting method measurements and that the new uncertainty estimator provides a reasonable estimate of single measurement uncertainty.