What is the average income in Colorado?

The median household income in Colorado is approximately $87,598 (2024), ranking 8th among US states. Denver metro has a median of $92,000, Boulder $88,500, and Colorado Springs $76,200. The state benefits from a highly educated workforce and strong tech sector.

Is Colorado expensive?

Colorado is above the national average, with an overall cost of living index of about 105 in Colorado Springs to 130+ in Boulder and mountain resort towns. Denver is around 120. Housing is the primary driver — the Denver median home is about $560,000, though eastern plains cities are much more affordable.

What is Colorado's income tax rate?

Colorado has a flat income tax of 4.40% (reduced from 4.55% in 2024). It's a flat rate applied to all income levels — based on federal taxable income, making filing simple. Combined with moderate property taxes and no estate tax, Colorado's overall tax burden is middle-of-the-road.

Living in Colorado: Income, Housing, Taxes & Cost of Living (2026)

Colorado is a high-growth state with a strong economy, outdoor lifestyle, and a cost of living that’s risen significantly since 2020. The Denver-Boulder-Colorado Springs corridor drives the economy, with major employers in aerospace (Lockheed Martin, Ball), tech, healthcare, and federal government (NOAA, Air Force Academy, Space Command). The state has a flat 4.40% income tax, moderate property taxes, and no estate tax. Housing is the primary financial challenge — Denver metro home prices exceed $550,000, and mountain resort towns (Vail, Aspen, Breckenridge) are in the millions. Eastern Plains and Western Slope cities like Grand Junction, Pueblo, and Fort Collins offer meaningfully lower costs. Colorado is most financially attractive to dual-income households in the Front Range tech and healthcare sectors.

Colorado at a Glance

Metric	Value	National Rank
Population (2024)	5.9 million	21st
Median household income	$87,598	8th
Median home price	$530,000	Top 15
Cost of living index	120 (Denver), 105 (Springs)	Above average
State income tax	4.40% flat	Below average
Sales tax (state + local avg)	7.77%	Average
Property tax (effective rate)	0.55%	13th lowest

Income in Colorado

Median Household Income by City

City/Metro Area	Median Household Income	Cost of Living Index	Affordability Rating
Boulder	$88,500	135	Fair
Denver	$82,000	120	Fair
Fort Collins	$76,400	115	Fair
Colorado Springs	$76,200	105	Good
Loveland-Longmont	$82,500	120	Fair
Castle Rock/Douglas County	$115,000	125	Good
Grand Junction	$62,400	96	Good
Pueblo	$50,100	88	Good
Greeley	$70,200	100	Good

Housing in Colorado

Home Prices by City

City/Area	Median Home Price	Price per Sq Ft	Median Rent (2BR)	Price-to-Income
Boulder	$775,000	$440	$2,200	8.8
Denver	$560,000	$325	$1,900	6.8
Fort Collins	$520,000	$290	$1,700	6.8
Colorado Springs	$440,000	$230	$1,500	5.8
Longmont	$560,000	$310	$1,800	6.8
Grand Junction	$380,000	$210	$1,300	6.1
Pueblo	$265,000	$150	$1,000	5.3
Greeley	$410,000	$220	$1,400	5.8
State Average	$530,000	$280	$1,650	6.1

Mountain Resort Towns (For Context)

Town	Median Home Price	Median Rent (2BR)	Who Can Afford This
Aspen	$4,500,000+	$4,000+	Top 1%
Vail	$2,200,000	$3,500+	Top 2%
Telluride	$2,000,000	$3,000+	Top 2%
Steamboat Springs	$875,000	$2,400	Top 10%
Breckenridge	$950,000	$2,600	Top 10%

Taxes in Colorado

Flat Income Tax

Tax	Rate	Notes
State income tax	4.40% flat	All income levels (reduced from 4.55% in 2024)
Based on	Federal taxable income	Simple to calculate
Social Security	Not taxed (with income limits)	Exempt if 65+; partial exemption under 65

Total Tax Burden

Gross Income	Federal Tax	CO Income Tax	FICA	Property Tax ($530K home)	Effective Rate
$75,000	$8,115	$2,640	$5,738	$2,915	25.9%
$100,000	$13,615	$3,740	$7,650	$2,915	27.9%
$150,000	$25,915	$5,940	$10,878	$2,915	30.4%

Cost of Living (Denver)

Category	Denver Index	National Average	Annual Difference
Housing	152	100	+$8,736
Groceries	102	100	+$100
Transportation	106	100	+$600
Healthcare	108	100	+$400
Utilities	92	100	-$320
Overall	120	100	+$9,516

Affordability Analysis

Income Needed to Live Comfortably

Household Type	Denver	Colorado Springs	Pueblo
Single person	$65,000	$55,000	$42,000
Couple	$98,000	$82,000	$62,000
Family of 4	$130,000	$105,000	$80,000

Colorado Pros and Cons

Financial Pros	Financial Cons
8th highest median household income	Housing prices significantly above average
Low 4.40% flat income tax	Mountain resort areas extremely expensive
Low property taxes (0.55%)	Higher auto insurance costs
Strong job market (tech, aerospace, energy)	Winter heating costs above average
TABOR limits tax increases (voter approved)	Rapid population growth = competition
No estate or inheritance tax	Springs/Denver traffic worsening
Outdoor lifestyle (300 days sunshine)	Wildfire insurance costs rising

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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