Cost of Living in Denver, CO
Denver is about 29% more expensive than the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Denver at a Glance
On the median income of $92,504, state income tax is roughly $4,070/year.
Sources: Census ACS 2024, Tax Foundation.
Denver sits at the intersection of mountain lifestyle and urban career, and that combination has priced the city above the national average by about 16%. Housing is the primary driver at 41% above average, with a median home price around $555,000. The city has grown rapidly as remote workers and companies (Lockheed Martin, Arrow Electronics, and a growing tech sector) have been drawn to the sunshine, outdoor access, and quality of life. Colorado's flat 4.4% income tax is competitive, and property taxes are notably low at about 0.55%. Outside of housing, Denver's costs are moderate: groceries, healthcare, and transportation run only 5-8% above average.
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Denver
Denver offers 300 days of sunshine, world-class skiing within 90 minutes, and a craft beer scene that is probably illegal to discuss without tasting. The job market is strong in aerospace, tech, healthcare, and energy. The city has invested heavily in its downtown, with Union Station becoming a genuine gathering place and RiNo (River North) emerging as a creative district. Denver is walkable and bikeable by Western standards, with a growing light rail system. The combination of outdoor lifestyle and professional opportunity is the core of the value proposition.
Neighborhoods
LoDo (Lower Downtown) and RiNo (River North) are the trendy, walkable core. Capitol Hill is dense and urban. Cherry Creek is upscale shopping and dining. Highlands (LoHi, the Highlands) offer restaurants and city views. Washington Park is family-friendly with a beautiful park. For more affordable options, Aurora to the east and Lakewood to the west offer lower prices. Arvada and Westminster to the north provide suburban living with light rail access.
Things to Consider
The altitude is real. Denver sits at 5,280 feet, and newcomers experience headaches, dehydration, and fatigue for the first few weeks. Alcohol hits harder. Exercise takes adjustment. Housing costs have been rising faster than incomes, creating affordability pressure, especially for first-time buyers. Traffic on I-25 and I-70 (the ski corridor) can be severe. Wildfire risk in the foothills and mountain communities has become a growing concern. The combination of housing costs, sales tax (8.81%), and income tax (4.4%) creates a total cost that, while lower than coastal cities, is no longer the bargain it was a decade ago.
Compare Denver To...
Frequently Asked Questions About Denver
Denver is about 16% above the national average, driven by housing at 41% above. The median home price of roughly $636,400 has cooled slightly from its pandemic peak but remains well above pre-2020 levels. For someone coming from the Bay Area, Seattle, or LA, Denver still offers savings. For someone coming from the Midwest or South, it represents a significant increase. The flat 4.4% income tax and low 0.55% property tax rate help, but housing is the dominant cost.
Denver sits at 5,280 feet (one mile) above sea level. Most newcomers experience mild altitude effects for one to three weeks: headaches, shortness of breath during exercise, faster intoxication, dry skin, and disrupted sleep. Staying hydrated is essential. Long-term residents adapt, and most find the dry, sunny climate very agreeable once the adjustment period passes. The mountain passes west of Denver are significantly higher (10,000-12,000 feet), which matters for skiing and mountain activities.
Denver residents pay Colorado's flat 4.4% state income tax. There is also a small Denver Occupational Privilege Tax of about $5.75 per month for employees working in the city. Combined with the 8.81% sales tax and 0.55% property tax, Denver's total tax burden is moderate. The flat income tax structure means the rate is predictable regardless of income level.