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Cost of Living: Denver, CO vs Phoenix, AZ

A data-driven comparison of housing, groceries, transportation, taxes, job market and more. See which city gives you more for your money.

10.7% Phoenix, AZ is cheaper overall
19.7% 19.7% cheaper housing
3.0% 3.0% cheaper groceries
Updated April 2026 · Data: Bureau of Labor Statistics, U.S. Census Bureau National average = 100

At a Glance

🏠 Housing 19.7% cheaper
Denver
132
Phoenix
106
🛒 Groceries 3.0% cheaper
Denver
101
Phoenix
98
🚗 Transportation 3.8% cheaper
Denver
105
Phoenix
101
🏥 Healthcare 8.7% cheaper
Denver
104
Phoenix
95
⚡ Utilities 12.5% more
Denver
96
Phoenix
108

Detailed Breakdown

Category Denver, CO Phoenix, AZ Difference
Overall Cost Index11210010.7% less
Housing13210619.7% less
Median 1BR Rent$1,620$1,28021.0% less
Median Home Price$540,000$370,00031.5% less
Groceries101983.0% less
Transportation1051013.8% less
Healthcare104958.7% less
Utilities9610812.5% more

Tax Comparison

Tax Type Denver, CO Phoenix, AZ
State Income Tax4.40%2.50%
State Sales Tax2.90%5.60%
Avg Property Tax Rate0.49%0.51%
Estate / Inheritance TaxNoneNone

What You'd Need to Earn

Denver, CO
$82,000
Median household income
Phoenix, AZ
$68,000
Median household income
⚠️ Heads up: Phoenix costs more but median income is lower. You may need to earn more to maintain the same standard of living.

Salary Equivalent Calculator

Find out what you'd need to earn in Phoenix to maintain your Denver lifestyle.

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Based on overall cost index: Denver (112) vs Phoenix (100). This is an estimate for comparison purposes.

Job Market Snapshot

Unemployment Rate
Denver3.5%
Phoenix3.9%
Job Growth (YoY)
Denver3.6%
Phoenix3.3%
Top Industries
DenverTech, Aerospace, Energy
PhoenixTech, Healthcare, Finance

Quality of Life

Avg Commute
Denver27 min
Phoenix27 min
Walk Score
Denver61
Phoenix38
Air Quality (AQI)
Denver45
Phoenix58
Avg Temperature
Denver51°F
Phoenix75°F
Population
Denver713,252
Phoenix1,624,569

Moving from Denver to Phoenix?

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Planning Your Move?

Here are some helpful resources if you're considering relocating.

🏠 Find ApartmentsBrowse rentals in Denver and Phoenix → 🚚 Get Moving QuotesCompare prices from top movers → 📈 Check Home ValuesSee real estate trends in both cities → 💼 Search JobsFind open positions in Phoenix →

Compare Other Cities

Denver vs Austin → Denver vs Nashville → Denver vs Raleigh → Phoenix vs Portland → Phoenix vs Chicago → Phoenix vs Miami →

Frequently Asked Questions

Is Denver or Phoenix cheaper to live in?+
Phoenix is the more affordable option overall. The biggest difference is in housing costs, where the gap is about 19.7%. Day-to-day expenses like groceries and transportation are closer between the two cities.
How much is rent in Denver vs Phoenix?+
A typical one-bedroom apartment costs around $1,620/month in Denver and $1,280/month in Phoenix — a difference of about $340 per month.
Which city has lower taxes, Denver or Phoenix?+
Colorado has a state income tax of 4.40% and sales tax of 2.90%. Arizona has a state income tax of 2.50% and sales tax of 5.60%. Consider all tax types together when evaluating total tax burden, as states with no income tax often compensate with higher sales or property taxes.
Can I afford to move from Denver to Phoenix?+
Median household income in Denver is $82,000 compared to $68,000 in Phoenix. Use the salary calculator above to see what you'd need to earn to maintain your current standard of living.
What about buying a home in Denver vs Phoenix?+
The median home price in Denver is $540,000 versus $370,000 in Phoenix — a difference of $170,000. Property tax rates also differ: Colorado averages 0.49% while Arizona averages 0.51%.