Median one-bedroom rent across the cities we track is $1,004 in Alabama versus $1,305 in Colorado. Overall, Alabama runs roughly 23% cheaper on rent than Colorado, its main day-to-day cost driver.
Median household income across tracked cities is $44,376 in Alabama and $85,364 in Colorado — about 48% higher in Colorado. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Colorado has a top state income tax rate of 4.40% and a 2.9% state sales tax.
State Taxes
Sales Tax
4%
2.9%
+1.1 pp in Alabama
Income Tax (top rate)
5.00%
4.40%
+0.6 pp in Alabama
Housing (median across tracked cities)
Median 1BR Rent
$1,004
$1,305
+30% in Colorado
Median Home Value
$138,600
$586,700
+323% in Colorado
Income (median across tracked cities)
Median Household Income
$44,376
$85,364
+92% in Colorado
Climate (median across tracked cities)
Avg Annual Temperature
63.3°F
50.2°F
+13.1°F in Alabama
Alabama vs Colorado — FAQ
- Is it cheaper to live in Alabama or Colorado?
- Alabama is cheaper on rent — its median one-bedroom of $1,004 runs about 23% below Colorado's $1,305, based on the cities we track in each state.
- How much more do you need to earn to live in Alabama than in Colorado?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $40,000 a year in Alabama versus $52,000 in Colorado.
- Which has lower taxes, Alabama or Colorado?
- Alabama has a top state income tax rate of 5.00% and a 4% state sales tax. Colorado has a top state income tax rate of 4.40% and a 2.9% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Alabama/Colorado — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.