Cost of Living: Denver, CO vs Tempe, AZ (2026)

Denver

Colorado
147
VS

Tempe

Arizona
120

Denver is 22% more expensive than Tempe.

$1,770/mo ↑ 9%
Median Rent
$1,623/mo ↓ 8%
$91,681/yr ↑ 18%
Median Income
$77,643/yr ↓ 15%
$586,700 ↑ 39%
Home Value
$421,900 ↓ 28%
$1,839/mo ↑ 18%
Owner Costs
$1,554/mo ↓ 15%
713,734
Population
186,419

Tax Comparison

4.4%
Income Tax
2.5%
2.9%
State Sales Tax
5.6%
0.51%
Property Tax
0.62%

Affordability

23.2%
rent-to-income
Affordability
25.1%
rent-to-income

Detailed Comparison

When comparing Denver, CO and Tempe, AZ, the overall cost of living indices are 147 and 120 respectively (national median = 100). Rent is $147/month cheaper in Tempe, saving renters about $1,764/year.

Median household income is $14,038/year higher in Denver. Home values also differ significantly — the median in Denver is $586,700 compared to $421,900 in Tempe.

Arizona has a lower income tax rate, making Tempe slightly more tax-friendly.

Frequently Asked Questions

Denver vs Tempe — common questions

Is Denver or Tempe cheaper to live in?
Based on our cost index, Tempe is cheaper to live in with an index of 120 compared to 147 (US average = 100).
What is the rent difference between Denver and Tempe?
Median rent in Denver is $1,770/month and in Tempe it's $1,623/month — a difference of $147/month.
Which city has higher income, Denver or Tempe?
Median household income is $91,681 in Denver and $77,643 in Tempe. Median household income is $14,038/year higher in Denver.
How do taxes compare between Colorado and Arizona?
Colorado has 4.4% income tax, 2.9% sales tax, and 0.51% property tax. Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax.
Should I move to Denver or Tempe?
It depends on your priorities. Denver has a cost index of 147 with median rent of $1,770/mo, while Tempe has a cost index of 120 with rent of $1,623/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Denver details → View Tempe details →

More Comparisons

Other cost of living comparisons for Denver and Tempe

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