Cost of Living in Colorado
Things cost about ▲ 3% more in Colorado than the national average.
What Things Cost in Colorado
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Colorado has transformed from an affordable mountain state to a decidedly above-average cost market over the past 15 years. The Denver metro area drives much of the statewide figure, with housing roughly 34% above the national average. Boulder is even pricier. But Colorado's cost profile is nuanced: Colorado Springs remains surprisingly affordable for a city of its size, and Pueblo offers costs well below the national average. The state's flat 4.4% income tax, combined with moderate property taxes, keeps the overall tax burden reasonable even as housing costs have climbed.
Colorado at a Glance
Taxes in Colorado
Colorado's state income tax tops out at 4.4% flat. The combined sales tax averages 2.9%, which is relatively low. Property taxes run about 0.49% of home value, which on a $530,000 median home means roughly $2,597/year.
Cities in Colorado
Ranked from least to most expensive. Index 100 = national average.
Explore Colorado
FAQ About Colorado
Colorado is about 13% above the national average for cost of living, driven primarily by housing. Denver's median home price is around $636,400. However, Colorado Springs offers a significantly lower cost of living, and smaller cities like Pueblo are actually below the national average. The flat 4.4% income tax and low property taxes (0.51%) help offset housing costs compared to states like California or New York.
Yes, significantly. Colorado Springs has median home prices roughly 20-25% lower than Denver, lower rental costs, and a slightly lower overall cost of living index. It offers many of the same lifestyle benefits (mountain access, sunshine, outdoor recreation) at a lower price point. The city has also seen strong job growth, particularly in defense, tech, and healthcare.
Colorado has a flat income tax rate of 4.4%, which applies to all taxable income regardless of amount. This was reduced from 4.55% in recent years. The flat structure makes Colorado predictable for tax planning and relatively favorable for higher earners compared to states with progressive tax systems that can reach 10% or more.