Is it cheaper to live in Albuquerque or Denver?

Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 41% below Denver, CO's $1,750, mainly because of rent.

How much more do you need to earn to live in Albuquerque than in Denver?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $63,000 in Denver.

Which has lower taxes, Albuquerque or Denver?

Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Denver under Colorado's (a top state income tax rate of 4.40% and a 2.9% state sales tax).

Albuquerque vs Denver Cost of Living 2026

Albuquerque

New Mexico

$1,040/mo est.

Denver

Colorado

$1,750/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,040 in Albuquerque, NM versus $1,750 in Denver, CO. Overall, Albuquerque, NM is roughly 41% cheaper to live in day-to-day than Denver, CO, driven mainly by rent.

Median household income is $65,604 in Albuquerque, NM and $91,681 in Denver, CO — about 28% higher in Denver, CO. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax; Colorado has a top state income tax rate of 4.40% and a 2.9% state sales tax.

Albuquerque, NM

Denver, CO

Rent

Studio

$797

$1,497

+88% in Denver, CO

1 Bedroom

$889

$1,583

+78% in Denver, CO

2 Bedroom

$1,140

$1,958

+72% in Denver, CO

3 Bedroom

$1,459

$2,269

+56% in Denver, CO

Buying a Home

Median Home Value

$266,700

$586,700

+120% in Denver, CO

Income

Median Household Income

$65,604

$91,681

+40% in Denver, CO

Metro Median Wage (annual)

$48,060

$62,320

+30% in Denver, CO

People & Lifestyle

Median Age

38.7 yr

35.2 yr

+3.5 yr in Albuquerque, NM

Homeownership

61.5%

49.1%

+12.4 pp in Albuquerque, NM

Bachelor's+ (25+)

38.7%

55.6%

+16.9 pp in Denver, CO

Avg Commute

22.2 min

25.4 min

+3.2 min in Denver, CO

Crime (per 100k/yr)

Violent Crime

1,193.2

998.3

+16% in Albuquerque, NM

Property Crime

4,766.2

4,781.9

+0% in Denver, CO

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

57.2°F

50.2°F

+7.0°F in Albuquerque, NM

Annual Precipitation

9.4 in

15.6 in

+6.1 in in Denver, CO

Gas

Regular Gasoline

$3.99/gal

$4.58/gal

+15% in Denver, CO

Area: Gulf Coast (PADD 3) vs Denver.

Public Transit

Base Fare (one-way)

Free

$2.75

Adult base one-way fare — ABQ RIDE vs RTD (2026).

Utilities

Electricity (¢/kWh)

14.8

16.7

+13% in Denver, CO

Natural Gas ($/MCF)

$11.90

$11.64

+2% in Albuquerque, NM

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.37

about equal

Bread (lb)

$2.10

about equal

Eggs (doz)

$2.25

about equal

Ground Beef (lb)

$7.23

about equal

Chicken (lb)

$2.14

about equal

Bananas (lb)

$0.74

about equal

Average prices — West vs West (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (NM / CO)

4.875%

2.9%

+2.0 pp in NM

Income Tax (top rate)

5.90%

4.40%

+1.5 pp in NM

Albuquerque vs Denver — FAQ

Is it cheaper to live in Albuquerque or Denver?: Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 41% below Denver, CO's $1,750, mainly because of rent.
How much more do you need to earn to live in Albuquerque than in Denver?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $63,000 in Denver.
Which has lower taxes, Albuquerque or Denver?: Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Denver under Colorado's (a top state income tax rate of 4.40% and a 2.9% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).