Is it cheaper to live in Denver or Phoenix?

Phoenix, AZ is cheaper. Its monthly baseline of $1,430 (1BR rent + utilities) runs about 18% below Denver, CO's $1,750, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $63,000 a year in Denver versus $50,000 in Phoenix.

Which has lower taxes, Denver or Phoenix?

Denver is taxed under Colorado's rules (a top state income tax rate of 4.40% and a 2.9% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% state sales tax).

Denver vs Phoenix Cost of Living 2026

Denver

Colorado

$1,750/mo est.

Phoenix

Arizona

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,750 in Denver, CO versus $1,430 in Phoenix, AZ. Overall, Phoenix, AZ is roughly 18% cheaper to live in day-to-day than Denver, CO, driven mainly by rent.

Median household income is $91,681 in Denver, CO and $77,041 in Phoenix, AZ — about 16% higher in Denver, CO. Colorado has a top state income tax rate of 4.40% and a 2.9% state sales tax; Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.

Denver, CO

Phoenix, AZ

Rent

Studio

$1,497

$1,127

+25% in Denver, CO

1 Bedroom

$1,583

$1,253

+21% in Denver, CO

2 Bedroom

$1,958

$1,493

+24% in Denver, CO

3 Bedroom

$2,269

$1,771

+22% in Denver, CO

Buying a Home

Median Home Value

$586,700

$381,900

+35% in Denver, CO

Income

Median Household Income

$91,681

$77,041

+16% in Denver, CO

Metro Median Wage (annual)

$62,320

$51,380

+18% in Denver, CO

People & Lifestyle

Median Age

35.2 yr

34.8 yr

+0.4 yr in Denver, CO

Homeownership

49.1%

57.1%

+8.0 pp in Phoenix, AZ

Bachelor's+ (25+)

55.6%

32.3%

+23.3 pp in Denver, CO

Avg Commute

25.4 min

25.7 min

+0.3 min in Phoenix, AZ

Crime (per 100k/yr)

Violent Crime

998.3

799.6

+20% in Denver, CO

Property Crime

4,781.9

2,338.9

+51% 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

50.2°F

75.1°F

+24.9°F in Phoenix, AZ

Annual Precipitation

15.6 in

8.2 in

+7.4 in in Denver, CO

Gas

Regular Gasoline

$4.58/gal

$5.57/gal

+22% in Phoenix, AZ

Area: Denver vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

$2.75

$2.00

+27% in Denver, CO

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

Utilities

Electricity (¢/kWh)

16.7

15.6

+7% in Denver, CO

Natural Gas ($/MCF)

$11.64

$19.69

+69% in Phoenix, AZ

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 (CO / AZ)

2.9%

5.6%

+2.7 pp in AZ

Income Tax (top rate)

4.40%

2.50%

+1.9 pp in CO

Denver vs Phoenix — FAQ

Is it cheaper to live in Denver or Phoenix?: Phoenix, AZ is cheaper. Its monthly baseline of $1,430 (1BR rent + utilities) runs about 18% below Denver, CO's $1,750, mainly because of rent.
How much more do you need to earn to live in Denver than in Phoenix?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $63,000 a year in Denver versus $50,000 in Phoenix.
Which has lower taxes, Denver or Phoenix?: Denver is taxed under Colorado's rules (a top state income tax rate of 4.40% and a 2.9% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% 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).