Cost of Living in Colorado

By Jacqueline DeMarco

(Last Updated – 03/2025)

If you love to hit the slopes, you’ll love living in Colorado. Maybe the access to so much nature and so many outdoor activities is why Colorado is the state ranked ninth for overall health, according to U.S. News & World Report.

To better understand if living in the Centennial State is the right fit for you, keep reading to learn more about the cost of living in Colorado.

What’s the Average Cost of Living in Colorado?

Average Cost of Living in Colorado: $63,781 per year

Take a closer look at your budget before you decide to move to Colorado. MERIC data gathered in 2024 found that Colorado tied with Idaho and Puerto Rico for the 32nd best cost-of-living in the country. The neighboring state of Nebraska (No. 18) would be a better fit for those looking to save on living expenses. Kansas (No. 3) is an even bigger bargain. What does the Colorado cost of living look like? According to data from the Bureau of Economic Analysis, the average total personal consumption cost in Colorado is $63,781 per year. This is what the average spending looks like across a variety of categories.

Housing Costs in Colorado

Average Housing Costs in Colorado: $1,496 to $2,732 per month

Colorado is home to more than 2.6 million housing units, which means you’ll have plenty of options. The big question is, can you afford rent or a mortgage in Colorado? Zillow reported Colorado’s typical home price as $543,106 in December 2024.

How much you’ll pay for housing will depend on if you’re renting or buying and how large your rental is. Here’s what those prices look like according to census data:

•  Median monthly mortgage cost: $2,231

•  Median studio rent: $1,496

•  Median one-bedroom rent: $1,546

•  Median two-bedroom rent: $1,810

•  Median three-bedroom rent: $2,083

•  Median four-bedroom rent: $2,305

•  Median five-bedroom (or more) rent: $2,732

•  Median gross rent: $1,771

Recommended: Denver Housing Market: Trends & Prices

Because prices can vary so much throughout the state, take a look at the typical home price in some of Colorado’s major cities, sourced from Zillow in December 2024:

Utility Costs in Colorado

Average Utility Costs in Colorado: $296 per month

It can get bone-chilling in Colorado, so you need to budget enough to keep the heat pumping in the winter. Here’s what the average utility spending looks like.

Sources: U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price; Statista.com, Average monthly residential utility costs in the United States, by state; DoxoInsights, U.S. Cable & Internet Market Size and Household Spending Report; and Rentcafe.com, What Is the Average Water Bill?

Groceries & Food

Average Grocery & Food Costs in Colorado: $410 per person, per month

We all need to eat, so it’s fair to wonder how much you should expect to spend on food in Colorado.

The Bureau of Economic Analysis estimates Colorado’s average annual nonrestaurant food cost per person to be $4,922, or about $410 per month. For a family of four, the grocery bill could be about $1,641 per month.

Where you live will play a role in how much you spend on food. The Council for Community and Economic Research ranks food costs in major cities. These are the rankings for grocery costs for 2024.

Transportation

Average Transportation Costs in Colorado: $9,550 to $17,771 per year

Daily commutes, weekend ski trips with the family, and getting from place to place all cost money. How much you’ll spend on transportation in Colorado depends greatly on how many working adults are in your family and how many children you have.

This basic breakdown from MIT’s Living Wage Calculator data as of February 2025 gives you an idea of what you might spend on transportation.

Health Care

Average Health Care Costs in Colorado: $8,415 per person, per year

Colorado residents spend an average of $8,415 a year on health care, according to the Bureau of Economic Analysis Personal Consumption Expenditures by State report.

Of course that average can vary, depending on individuals’ coverage and needs.

Child Care

Average Child Care Costs in Colorado: $1,000 to $1,446 or more per child, per month

Child care can really eat up your budget, no matter where you live. The Colorado Child Care Assistance Program helps families who need child care so they can work, search for employment, or go through employment training in order to become self-sufficient.

These are the average child care costs you can expect to encounter in Texas, according to data from costofchildcare.org .

Taxes

Tax Rate in Colorado: 4.40%

No matter what state we live in, we all follow the same format when it comes to federal income taxes. However, states have different state income tax rates (if any) and varying ways of calculating how much is owed.

In Colorado, calculating how much you owe is simple, as Colorado has a flat income tax of 4.40%, according to the Tax Foundation’s State Individual Income Tax Rates and Brackets for 2025. Utah, a neighbor, also has a flat income tax rate: 4.55% as of 2025.

Miscellaneous Costs

If, as the Bureau of Economic Analysis estimates, other personal consumption expenditures (outside of the necessities like housing, transportation, and health care) total $36,462 a year, this is where some of that spending may be going (costs are accurate as of February 2025):

•  If you want to practice rock climbing safely indoors before heading outside, check out the Boulder Rock Club, a popular local rock climbing gym: $28 for your first visit or $91 monthly membership for adults

•  The Glenwood Caverns Adventure Park in Glenwood Springs offers a wide variety of family fun: $35 for a gondola ride to the top of the mountain ($30 online); $55 for a gondola ride and cave tours ($50 online).

•  For a fun and educational family day in Denver, stop by the Denver Museum of Nature and Science: Youth tickets (ages 3-18) are $20.95, adult tickets are $25.95, and senior tickets are $22.95.

•  Or catch a live concert at Red Rocks Park and Amphitheatre in Morrison, Colorado. This unique outdoor venue opened in 1941 and has been designated a National Historic Landmark. Admission is free to the 738 acre park for visitors from sunrise to sunset (on nonevent days). You can also grab a ticket to a concert (starting around $40, depending on the artist), to sunrise yoga ($19), or even to a movie ($20) “on the rocks.

How Much Money Do You Need to Live Comfortably in Colorado?

How obtainable it is to live comfortably in a specific state will depend greatly on your family size and other factors. That said, don’t expect to get off easy in Colorado.

Colorado rose slightly to the 41st spot in the 2024 U.S. News & World Report’s Affordability Rankings, which compare the average cost of living in each state with the average household income. Colorado fared much better in the previously mentioned MERIC study, where the state ranked 32nd.

What City Has the Lowest Cost of Living in Colorado?

Looking for an affordable place to live in Colorado? Take some time getting to know the two major cities with lower cost of living from the Council for Community and Economic Research’s Cost of Living Index for 2024.

Pueblo

The most affordable major city in Colorado is Pueblo, with a cost-of-living index of just 92.7. Enjoy strolls on the stunning Riverwalk, and take a break to enjoy one of the many local cafes or breweries.

Colorado Springs

With a cost-of-living index of 101.9, Colorado Springs is the third most affordable major city in Colorado. This city is a nature lover’s dream, and there is no shortage of hiking opportunities to help you blow off steam after work, perhaps at the nearby Peterson Space Force Base. On the weekends, enjoy some family time at the local zoo, museums, and parks. Colorado Springs is home to more than 60 attractions, so there’s no shortage of fun to be had!

Recommended: Colorado Springs Housing Market: Trends & Prices