Is it cheaper to live in Austin or Denver?

Austin, TX is cheaper. Its monthly baseline of $1,650 (1BR rent + utilities) runs about 6% below Denver, CO's $1,750, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $58,000 a year in Austin versus $63,000 in Denver.

Which has lower taxes, Austin or Denver?

Austin is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Denver under Colorado's (a top state income tax rate of 4.40% and a 2.9% state sales tax).

Austin vs Denver Cost of Living 2026

Austin

Texas

$1,650/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 $1,650 in Austin, TX versus $1,750 in Denver, CO. Overall, Austin, TX is roughly 6% cheaper to live in day-to-day than Denver, CO, driven mainly by rent.

Median household income is $91,461 in Austin, TX and $91,681 in Denver, CO. Texas has no state income tax and a 6.25% state sales tax; Colorado has a top state income tax rate of 4.40% and a 2.9% state sales tax.

Austin, TX

Denver, CO

Rent

Studio

$1,348

$1,497

+11% in Denver, CO

1 Bedroom

$1,457

$1,583

+9% in Denver, CO

2 Bedroom

$1,776

$1,958

+10% in Denver, CO

3 Bedroom

$2,127

$2,269

+7% in Denver, CO

Buying a Home

Median Home Value

$512,700

$586,700

+14% in Denver, CO

Income

Median Household Income

$91,461

$91,681

+0% in Denver, CO

Metro Median Wage (annual)

$56,950

$62,320

+9% in Denver, CO

People & Lifestyle

Median Age

34.5 yr

35.2 yr

+0.7 yr in Denver, CO

Homeownership

44.4%

49.1%

+4.7 pp in Denver, CO

Bachelor's+ (25+)

58.2%

55.6%

+2.6 pp in Austin, TX

Avg Commute

24.0 min

25.4 min

+1.4 min in Denver, CO

Crime (per 100k/yr)

Violent Crime

475.9

998.3

+110% in Denver, CO

Property Crime

3,290.2

4,781.9

+45% 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

67.2°F

50.2°F

+17.0°F in Austin, TX

Annual Precipitation

34.9 in

15.6 in

+19.3 in in Austin, TX

Gas

Regular Gasoline

$3.96/gal

$4.58/gal

+16% in Denver, CO

Area: Texas vs Denver.

Public Transit

Base Fare (one-way)

$1.25

$2.75

+120% in Denver, CO

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

Utilities

Electricity (¢/kWh)

16.4

16.7

+2% in Denver, CO

Natural Gas ($/MCF)

$24.61

$11.64

+53% in Austin, TX

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

Groceries

Milk (gal)

$4.16

$4.37

+5% in Denver, CO

Bread (lb)

$1.73

$2.10

+21% in Denver, CO

Eggs (doz)

$2.19

$2.25

+3% in Denver, CO

Ground Beef (lb)

$6.56

$7.23

+10% in Denver, CO

Chicken (lb)

$1.90

$2.14

+12% in Denver, CO

Bananas (lb)

$0.61

$0.74

+21% in Denver, CO

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

State Taxes

Sales Tax (TX / CO)

6.25%

2.9%

+3.4 pp in TX

Income Tax (top rate)

None

4.40%

+4.4 pp in CO

Austin vs Denver — FAQ

Is it cheaper to live in Austin or Denver?: Austin, TX is cheaper. Its monthly baseline of $1,650 (1BR rent + utilities) runs about 6% below Denver, CO's $1,750, mainly because of rent.
How much more do you need to earn to live in Austin than in Denver?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $58,000 a year in Austin versus $63,000 in Denver.
Which has lower taxes, Austin or Denver?: Austin is taxed under Texas's rules (no state income tax and a 6.25% 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).