Is it cheaper to live in Birmingham or Denver?

Birmingham, AL is cheaper. Its monthly baseline of $1,190 (1BR rent + utilities) runs about 32% below Denver, CO's $1,750, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $63,000 in Denver.

Which has lower taxes, Birmingham or Denver?

Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Denver under Colorado's (a top state income tax rate of 4.40% and a 2.9% state sales tax).

Birmingham vs Denver Cost of Living 2026

Birmingham

Alabama

$1,190/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 $1,190 in Birmingham, AL versus $1,750 in Denver, CO. Overall, Birmingham, AL is roughly 32% cheaper to live in day-to-day than Denver, CO, driven mainly by rent.

Median household income is $44,376 in Birmingham, AL and $91,681 in Denver, CO — about 52% higher in Denver, CO. 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.

Birmingham, AL

Denver, CO

Rent

Studio

$857

$1,497

+75% in Denver, CO

1 Bedroom

$1,004

$1,583

+58% in Denver, CO

2 Bedroom

$1,005

$1,958

+95% in Denver, CO

3 Bedroom

$1,188

$2,269

+91% in Denver, CO

Buying a Home

Median Home Value

$138,600

$586,700

+323% in Denver, CO

Income

Median Household Income

$44,376

$91,681

+107% in Denver, CO

Metro Median Wage (annual)

$47,770

$62,320

+30% in Denver, CO

People & Lifestyle

Median Age

35.9 yr

35.2 yr

+0.7 yr in Birmingham, AL

Homeownership

45.1%

49.1%

+4.0 pp in Denver, CO

Bachelor's+ (25+)

30.7%

55.6%

+24.9 pp in Denver, CO

Avg Commute

21.5 min

25.4 min

+3.9 min in Denver, CO

Crime (per 100k/yr)

Violent Crime

1,274.7

999.3

+22% in Birmingham, AL

Property Crime

4,233

4,781.1

+13% 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

63.3°F

50.2°F

+13.1°F in Birmingham, AL

Annual Precipitation

53.7 in

15.6 in

+38.1 in in Birmingham, AL

Gas

Regular Gasoline

$3.62/gal

$4.27/gal

+18% in Denver, CO

Area: Gulf Coast (PADD 3) vs Denver.

Public Transit

Base Fare (one-way)

—

$2.75

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

Utilities

Electricity (¢/kWh)

16.8

16.2

+4% in Birmingham, AL

Natural Gas ($/MCF)

$22.64

$11.92

+47% in Birmingham, AL

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

Groceries

Milk (gal)

$4.00

$4.82

+20% in Denver, CO

Bread (lb)

$1.75

$2.04

+17% in Denver, CO

Eggs (doz)

$2.21

$2.19

+1% in Birmingham, AL

Ground Beef (lb)

$6.45

$7.36

+14% in Denver, CO

Chicken (lb)

$1.90

$2.01

+6% in Denver, CO

Bananas (lb)

$0.62

$0.70

+14% in Denver, CO

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

State Taxes

Sales Tax (AL / CO)

2.9%

+1.1 pp in AL

Income Tax (top rate)

5.00%

4.40%

+0.6 pp in AL

Birmingham vs Denver — FAQ

Is it cheaper to live in Birmingham or Denver?: Birmingham, AL is cheaper. Its monthly baseline of $1,190 (1BR rent + utilities) runs about 32% below Denver, CO's $1,750, mainly because of rent.
How much more do you need to earn to live in Birmingham than in Denver?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $63,000 in Denver.
Which has lower taxes, Birmingham or Denver?: Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% 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).