Arizona vs Colorado — Cost of Living, Taxes & Income Reality
Data: 2026-Q2 · BLS · HUD · KFFQuick comparison
| Metric | Arizona | Colorado |
|---|---|---|
| Cost of Living Index | 102 ✓ | 107 |
| Median Household Income | $81,486 | $97,113 ✓ |
| Median Rent | $1,940/mo ✓ | $2,250/mo |
| State Income Tax | 2.50% ✓ | 4.40% |
Tax reality
On a $70,000 salary, you keep about $1,330 more per year in Arizona. That works out to roughly $111/month in additional take-home.
Housing reality
Arizona
1BR $1,583 – $1,583/mo
Colorado
1BR $1,754 – $1,754/mo
Major cities compared
Arizona
Colorado
Purchasing power
Your $70,000 in Phoenix feels like approximately $79,453 in Denver, once housing and taxes are accounted for.
Who benefits from each
- Remote workers and high earners who want to keep more of their paycheck lean toward Arizona for its lower tax burden.
- Anyone prioritizing a lower overall cost of living will find Arizona stretches a paycheck further.
- Workers chasing higher nominal salaries may prefer Colorado, where median household income is higher.
Arizona vs Colorado — FAQ
Is it cheaper to live in Arizona or Colorado?
By cost of living index, Arizona is the cheaper of the two (Arizona: 102, Colorado: 107; national average = 100). Source: C2ER Cost of Living Index.
Which state has lower income taxes, Arizona or Colorado?
Arizona leaves more in your pocket. On a $70,000 salary, you keep about $1,330 more per year in Arizona. Source: Tax Foundation 2025, IRS 2025.
What is the median income difference between Arizona and Colorado?
Colorado has the higher median household income (Arizona: $81,486, Colorado: $97,113). Source: Census ACS 2024.
Should I move from Arizona to Colorado?
It depends on your priorities. Arizona offers a lower cost of living, while Colorado has higher median incomes. Weigh taxes, housing, and career options together. This is a picture, not a verdict.