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

Phoenix

Arizona
109
VS

Denver

Colorado
147

Phoenix is 38% cheaper than Denver.

$1,458/mo ↓ 18%
Median Rent
$1,770/mo ↑ 21%
$77,041/yr ↓ 16%
Median Income
$91,681/yr ↑ 19%
$381,900 ↓ 35%
Home Value
$586,700 ↑ 54%
$1,430/mo ↓ 22%
Owner Costs
$1,839/mo ↑ 29%
1,624,832
Population
713,734

Tax Comparison

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

Affordability

22.7%
rent-to-income
Affordability
23.2%
rent-to-income

Detailed Comparison

When comparing Phoenix, AZ and Denver, CO, the overall cost of living indices are 109 and 147 respectively (national median = 100). Rent is $312/month cheaper in Phoenix, saving renters about $3,744/year.

Median household income is $14,640/year higher in Denver. Home values also differ significantly — the median in Phoenix is $381,900 compared to $586,700 in Denver.

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

Frequently Asked Questions

Phoenix vs Denver — common questions

Is Phoenix or Denver cheaper to live in?
Based on our cost index, Phoenix is cheaper to live in with an index of 109 compared to 147 (US average = 100).
What is the rent difference between Phoenix and Denver?
Median rent in Phoenix is $1,458/month and in Denver it's $1,770/month — a difference of $312/month.
Which city has higher income, Phoenix or Denver?
Median household income is $77,041 in Phoenix and $91,681 in Denver. Median household income is $14,640/year higher in Denver.
How do taxes compare between Arizona and Colorado?
Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax. Colorado has 4.4% income tax, 2.9% sales tax, and 0.51% property tax.
Should I move to Phoenix or Denver?
It depends on your priorities. Phoenix has a cost index of 109 with median rent of $1,458/mo, while Denver has a cost index of 147 with rent of $1,770/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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