Cost of Living in Colorado

By Jacqueline DeMarco

(Last Updated – July 15, 2026)

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: $66,448 per year

Take a closer look at your budget before you decide to move to Colorado. Missouri Economic Research & Information Center (MERIC) data gathered in 2026 found that Colorado has the 35th best cost of living in the country. The neighboring state of Nebraska (No. 16) would be a better fit for those looking to save on living expenses. Kansas (No. 4) is an even bigger bargain. What does the Colorado cost of living look like? According to the latest data from the Bureau of Economic Analysis, the average total personal consumption cost in Colorado is $66,448 per year. This is what the average spending looks like across a variety of categories.

Source: The Bureau of Economic Analysis, Personal Consumption Expenditures by State, 2024

Housing Costs in Colorado

Average Housing Costs in Colorado: $1,525 to $2,636 per month

Colorado is home to more than 2.7 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 $545,712 in April 2026.

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

•  Median monthly mortgage cost: $2,326

•  Median studio rent: $1,525

•  Median one-bedroom rent: $1,627

•  Median two-bedroom rent: $1,857

•  Median three-bedroom rent: $2,178

•  Median four-bedroom rent: $2,527

•  Median five-bedroom (or more) rent: $2,636

•  Median gross rent: $1,761

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 April 2026:

Source: Zillow, April 2026

Utility Costs in Colorado

Average Utility Costs in Colorado: $400 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.

Source: Doxo Insights 2026 U.S. Household Bill Pay Report

Groceries & Beverage Spending

Average Grocery & Beverage Costs in Colorado: $408 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 $4,901, or about $408 per month. For a family of four, the grocery bill could be about $1,634 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 2025.

Source: The Council for Community and Economic Research – Cost-of-Living Index, 2024 average

Transportation

Average Transportation Costs in Colorado: $8,508 to $15,977 per year

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

This basic breakdown from MIT’s Living Wage Calculator data as of February 2026 gives you an idea of what you might spend on transportation.

Source: MIT’s Living Wage Calculator, 2026

Health Care

Average Health Care Costs in Colorado: $8,871 per person, per year

Colorado residents spend an average of $8,871 a year on health care, according to the latest 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 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 .

Source: CostofChildCare.org

Taxes

Tax Rate in Colorado: 4.40%

No matter what state you live in, they 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 2026. Utah, a neighbor, also has a flat income tax rate: 4.50% as of 2026.

Miscellaneous Costs

If, as the Bureau of Economic Analysis estimates, other personal consumption expenditures (outside of the necessities, such as housing, transportation, and health care) total $37,792 a year, this is where some of that spending may be going. Costs are accurate as of June 2026.

•  If you want to practice rock climbing safely indoors before heading outside, check out the Boulder Rock Club, a popular local rock climbing gym. It’s $29 for your first visit or $100 for a monthly membership for adults.

•  The Glenwood Caverns Adventure Park in Glenwood Springs offers a wide variety of family fun. It costs $37.99 for a gondola ride to the top of the mountain ($32.99 online) and $57.99 for a gondola ride and cave tour ($52.99 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 (65+) 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 (prices vary depending on the artist and seating), sunrise yoga ($23), or even a movie ($25 to $50) “on the rocks.

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

How attainable 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 fell slightly to the 43rd spot in the 2026 U.S. News & World Report’s Affordability Rankings, which compare the average cost of living in each state with the average household income. The state fared much better in the previously mentioned MERIC study, where it ranked 35th.

What Major 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 costs of living from the Council for Community and Economic Research’s Cost of Living Index for 2025.

Pueblo

The most affordable major city in Colorado is Pueblo, with a cost-of-living index of just 92.6. 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 100.8, Colorado Springs is the second most affordable major city in Colorado. This city is a nature lover’s dream, and there’s 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