Cost of Living in Colorado — Housing, Taxes & Everyday Expenses

Overview

Colorado combines a flat 4.4% income tax with a strong job market and high quality of life. Denver has seen significant population and housing cost growth since 2015.

Housing costs

Median 1BR rent in Denver is approximately $1,700. Boulder and mountain resort towns are significantly more expensive. Fort Collins and Colorado Springs are more affordable.

1BR FMR across major Colorado cities: $1,754 – $1,754/mo (HUD FY2026)

Tax reality

Colorado has a flat income tax rate of 4.4%.

Everyday expenses

At a cost of living index of 107, Colorado is about 7% more expensive than the national average of 100. A $80,000 salary in Denver provides solid purchasing power — better than coastal cities but housing has risen significantly since 2015.