Is it cheaper to live in Anchorage or Denver?

Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 25% below Denver, CO's $1,750, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $63,000 in Denver.

Which has lower taxes, Anchorage or Denver?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Denver under Colorado's (a top state income tax rate of 4.40% and a 2.9% state sales tax).

Anchorage vs Denver Cost of Living 2026

Anchorage

Alaska

$1,320/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 $1,320 in Anchorage, AK versus $1,750 in Denver, CO. Overall, Anchorage, AK is roughly 25% cheaper to live in day-to-day than Denver, CO, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $91,681 in Denver, CO — about 7% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; Colorado has a top state income tax rate of 4.40% and a 2.9% state sales tax.

Anchorage, AK

Denver, CO

Rent

Studio

$1,001

$1,497

+50% in Denver, CO

1 Bedroom

$1,052

$1,583

+50% in Denver, CO

2 Bedroom

$1,433

$1,958

+37% in Denver, CO

3 Bedroom

$1,952

$2,269

+16% in Denver, CO

Buying a Home

Median Home Value

$375,900

$586,700

+56% in Denver, CO

Income

Median Household Income

$98,152

$91,681

+7% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$62,320

+4% in Denver, CO

People & Lifestyle

Median Age

34.9 yr

35.2 yr

+0.3 yr in Denver, CO

Homeownership

63.7%

49.1%

+14.6 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

55.6%

+17.9 pp in Denver, CO

Avg Commute

19.0 min

25.4 min

+6.4 min in Denver, CO

Crime (per 100k/yr)

Violent Crime

1,016.5

999.3

+2% in Anchorage, AK

Property Crime

2,796.2

4,781.1

+71% 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

37.4°F

50.2°F

+12.8°F in Denver, CO

Annual Precipitation

17.9 in

15.6 in

+2.3 in in Anchorage, AK

Gas

Regular Gasoline

$5.09/gal

$4.27/gal

+16% in Anchorage, AK

Area: West Coast (PADD 5) vs Denver.

Public Transit

Base Fare (one-way)

—

$2.75

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

Utilities

Electricity (¢/kWh)

28.2

16.2

+43% in Anchorage, AK

Natural Gas ($/MCF)

$14.40

$11.92

+17% in Anchorage, AK

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

Groceries

Milk (gal)

$4.82

about equal

Bread (lb)

$2.04

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$7.36

about equal

Chicken (lb)

$2.01

about equal

Bananas (lb)

$0.70

about equal

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

State Taxes

Sales Tax (AK / CO)

None

2.9%

+2.9 pp in CO

Income Tax (top rate)

None

4.40%

+4.4 pp in CO

Anchorage vs Denver — FAQ

Is it cheaper to live in Anchorage or Denver?: Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 25% below Denver, CO's $1,750, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Denver?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $63,000 in Denver.
Which has lower taxes, Anchorage or Denver?: Anchorage is taxed under Alaska's rules (no state income tax and no 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).