What is the cost of living in Colorado?
From housing to utilities and transport, this article dives into the cost of living in Colorado.
Summary
The average cost of living per person in Colorado is $53,374 per year.
If you own your home or rent in Colorado, you can expect to pay an average of $370 in utility bills for gas, electric, water, and internet.
Transportation costs can add up quickly if you need to travel far in Colorado or out of state; a single adult can expect to pay over $9,000 per year on transportation costs.
Colorado has a flat rate of income tax at 4.4%.
What's the average cost of living in Colorado?
Colorado is one of the fastest-growing states in the US in terms of population. The cost of living there is very much situationally dependent, with factors like exact location, career, and household size having a significant impact. It can be expensive.
According to 2021 data from the Bureau of Economic Analysis, the average cost of living per person in Colorado is $53,374 per year.
While according to Uncover Colorado, a single person can expect an average monthly living cost of $2,06, while a family of four can expect an average monthly living cost of $3,726 (equating to about $44,700 annually).
In addition, understanding these costs in relation to the average salary in Colorado is crucial for realistic budgeting.
How much does housing cost in Colorado?
According to the Zillow Home Values Index, the average home value in Colorado as of May 2024 is $553,692.
This is up 2% year-on-year.
If you're hoping to purchase a property — or simply looking for a broader view of the housing market so that you can determine which places might offer more affordable rates of rent — the table below outlines the average property purchase cost in Colorado's 10 most heavily populated cities as of May 2024:
| Area of Colorado | Average home value |
|---|---|
| Denver | $579,019 |
| Colorado Springs | $459,076 |
| Aurora | $497,240 |
| Fort Collins | $570,009 |
| Lakewood | $589,791 |
| Thornton | $536,231 |
| Arvada | $629,820 |
| Westminster | $549,595 |
| Pueblo | $290,493 |
| Greeley | $424,813 |
If you’re looking to rent, the median rent across all bedroom and property types in Colorado is $2,250, according to Zillow Rental Manager as of May 2024.
This is just over $100 more than the national median but a decrease of $45 compared to this time last year.
However, it’s important to remember rent will vary depending on where you live.
How much are utility costs in Colorado?
In Colorado, you can expect to pay just over $370 per month for your utility bills, according to Forbes.
The table below breaks down the average utility costs across your energy, water, gas, electricity, and cable bills:
| Utility | Average monthly amount |
|---|---|
| Energy bill | $91.96 |
| Water | $39 |
| Gas | $47 |
| Internet | $30 |
| Phone | $114 |
| Streaming | $50 |
How much do groceries cost in Colorado?
According to the Bureau of Economic Analysis, the estimated grocery bill for an average family of four in Colorado is $1,366 per month.
Meanwhile, for non-restaurants, the average cost per month per person is estimated to be $4,098 annually or $342 per month.
When shopping, you'll find prices are much the same as elsewhere in the United States.
How much does transportation cost in Colorado?
Colorado is a large state that occupies around the same landmass as New Zealand.
This means that transportation costs can add up quickly if you need to travel far in Colorado or out of state.
MIT's Living Wage Calculator provides some useful annual estimates for different household sizes:
| Scenario | Annual transportation expenditure |
|---|---|
| One adult, no children | $9,667 |
| One adult, one child | $11,188 |
| One adult, two children | $14,093 |
| Two adults (one working), no children | $11,188 |
| Two adults (one working), one child | $14,093 |
| Two adults (one working), two children | $16,215 |
| Two adults (two working), no children | $11,188 |
| Two adults (two working), one child | $14,093 |
| Two adults (two working), two children | $16,215 |
How much does healthcare cost in Colorado?
Healthcare costs in Colorado will vary depending on the type of health insurance you have and what your plan covers, your exact location, your age, and the state of your health.
MIT estimates:
| Scenario | Annual medical expenditure |
|---|---|
| One adult, no children | $2,714 |
| One adult, one child | $8,165 |
| One adult, two children | $8,053 |
| Two adults (one working), no children | $5,724 |
| Two adults (one working), one child | $8,053 |
| Two adults (one working), two children | $8,516 |
| Two adults (two working), no children | $5,724 |
| Two adults (two working), one child | $8,053 |
| Two adults (two working), two children | $8,516 |
How much does childcare cost in Colorado?
Childcare costs can have a huge impact on your cost of living. The Economic Policy Institute found that the average annual cost of infant care in Colorado is $15,325 - $1,277 a month. This is 9.8% more than the average rent in the state.
For older children, costs are slightly lower. The average cost for child care for a 4-year-old is $12,390 or $1,032 per month.
The table below breaks down the estimated cost of annual childcare expenses based on different family scenarios using data from MIT:
| Scenario | Annual childcare expenditure |
|---|---|
| One child | $16,620 |
| Two children | $30,695 |
| Three children | $41,354 |
How much will I pay in taxes in Colorado?
Every US taxpayer must abide by state and federal tax laws. For example, in Colorado, state income tax is charged at a flat rate of 4.4% rather than a progressive rate.
This figure used to be 4.55% but was reduced from the 2022 tax year onwards.
You'll also need to account for your federal income tax, for which the IRS currently enforces seven different rate brackets.
As of 2024, there are a total of seven income tax brackets. The rate your income is taxed at is determined by the bracket you fall into:
| Federal tax rate | Single filers | Married couples filing jointly | Married couples filing separately | Head of household |
|---|---|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $11,600 | $0 to $16,550 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $11,601 to $47,150 | $16,551 to $63,100 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $47,151 to $100,525 | $63,101 to $100,500 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,150 | $100,501 to $191,150 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,151 to $243,725 | $191,151 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,276 to $365,600 | $243,701 to $609,350 |
| 37% | $609,351 or more | $731,201 or more | $365,601 or more | $690,351 or more |
Colorado also taxes corporate income at 4.4%.
There is then a 2.9% state sales tax statewide and local sales tax rates ranging up to 8.3% (with an average combined sales tax rate of 7.78%) to account for.
How can I manage the cost of living in Colorado?
If you want to handle your finances better, a financial advisor can help you better manage your money. They will work with you to create a plan based on your unique circumstances.
You can find a financial advisor perfectly suited to meet your unique needs with Unbiased. Answer a few questions. Our match flow will find you an SEC-regulated financial advisor.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.