Colorado, known as the "Centennial State", is an increasingly expensive Rocky Mountain state with strong job growth. Here is everything you need to know about the cost of living in the Centennial State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Colorado for a single person earning the median income of $80,200/year:
Each category shows how Colorado compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Colorado.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Colorado.
The most popular cities for residents and newcomers in Colorado:
Housing is the single biggest expense in Colorado, as it is everywhere. The median home price in Colorado is $545,000, and the median rent for a one-bedroom apartment is $1,550/month. With a housing cost index of 120, Colorado housing is 20% more expensive than the national average.
Housing costs in Colorado are above average but manageable for households earning the median income. The 30% rule (spend no more than 30% of gross income on housing) is achievable in most areas.
Colorado has a state income tax rate of 4.4%. On the median household income of $80,200, you will pay approximately $3,529/year in state income tax ($294/month). This is below the national average — a tax advantage for Colorado residents.
The average single person in Colorado spends approximately $430/month on groceries. A family of four can expect to spend $1,075-$1,290/month. The food cost index of 101 means groceries in Colorado are 1% above the national average.
Gas prices in Colorado average $3.45/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $2,070/year in fuel costs.
Colorado healthcare costs are 3% above the national average (index: 103). The average annual healthcare cost per person in Colorado is approximately $6,180 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Colorado averages $1,200/month ($14,400/year). This is a significant expense that rivals rent in many areas. Many families in Colorado find that one parent staying home is more cost-effective when two or more children need daycare.
Colorado offers a solid balance of cost, opportunity, and quality of life. With costs near the national average, you get access to growing job markets in Denver and Colorado Springs, and a cost of living that leaves room for saving and investing.
See all Colorado financial calculators:
Colorado (CO) has a cost of living index of 105, meaning it is 5% more expensive than the US average. Housing is the biggest factor with an index of 120. The median rent is $1,550/month and the median home price is $545,000. Colorado ranks #36 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Colorado is approximately $104,260/year ($8,688/month). For a family of four, aim for $176,440/year. This covers housing at 30% of income, groceries ($430/mo), transportation, healthcare, and a 15% savings rate. The median household income in Colorado is $80,200.
The median rent for a one-bedroom apartment in Colorado is approximately $1,550/month. A two-bedroom averages $2,093/month. Rent varies significantly by city: Denver, Colorado Springs, Aurora are the most popular metro areas. Housing costs in Colorado are above average — budget carefully.
Colorado offers a balanced lifestyle with costs near the national average. Growing job markets in Denver and Colorado Springs attract new residents.
The most affordable areas in Colorado are typically smaller cities and rural areas away from the major metros. Within Colorado, costs can vary 20-40% between the most expensive city (Denver metro) and more affordable areas. Fort Collins and Boulder tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Colorado for a single person is approximately $430 ($1,075 for a family of four). Colorado food costs are 1% above the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Colorado is approximately $120. Total utilities (electric, gas, water, internet) average $264/month. Colorado utilities are 7% below the national average. Utility costs are manageable for most households.
Colorado has a state income tax rate of 4.4%. On the median household income of $80,200, that is approximately $3,529/year in state income tax. This is below the national average — a tax advantage.