Median one-bedroom rent across the cities we track is $1,253 in Arizona versus $1,305 in Colorado. Overall, Arizona runs roughly 4% cheaper on rent than Colorado, its main day-to-day cost driver.
Median household income across tracked cities is $77,041 in Arizona and $85,364 in Colorado — about 10% higher in Colorado. Arizona has a top state income tax rate of 2.50% and a 5.6% 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
5.6%
2.9%
+2.7 pp in Arizona
Income Tax (top rate)
2.50%
4.40%
+1.9 pp in Colorado
Housing (median across tracked cities)
Median 1BR Rent
$1,253
$1,305
+4% in Colorado
Median Home Value
$364,300
$586,700
+61% in Colorado
Income (median across tracked cities)
Median Household Income
$77,041
$85,364
+11% in Colorado
Climate (median across tracked cities)
Avg Annual Temperature
75.1°F
50.2°F
+24.9°F in Arizona
Arizona vs Colorado — FAQ
- Is it cheaper to live in Arizona or Colorado?
- Arizona is cheaper on rent — its median one-bedroom of $1,253 runs about 4% 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 Arizona 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 $50,000 a year in Arizona versus $52,000 in Colorado.
- Which has lower taxes, Arizona or Colorado?
- Arizona has a top state income tax rate of 2.50% and a 5.6% 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 3/3 cities we track in Arizona/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.