Austin vs Denver Cost of Living
Denver is approximately 2.9% more expensive than Austin. See salary equivalence, taxes, and side-by-side breakdown.
Austin, TX
Denver, CO
| Salary in Austin | Equivalent in Denver | Difference |
|---|---|---|
| $50,000 | $51,400 | +$1,400 (+2.8%) |
| $75,000 | $77,100 | +$2,100 (+2.8%) |
| $100,000 | $102,900 | +$2,900 (+2.9%) |
| $150,000 | $154,300 | +$4,300 (+2.9%) |
| $200,000 | $205,700 | +$5,700 (+2.9%) |
Austin and Denver cost within 3% of each other overall, so the decision between them is not really a financial one — it comes down to housing type, taxes, and how you want to get around.
Housing does most of the damage
Almost the entire gap between two cities is shelter. Tradable goods cost roughly the same everywhere; land does not. A one-bedroom runs about $1,400 a month in Austin and $1,550 in Denver — $150 a month apart, or $1,800 a year.
Buying sharpens the same story. Median home prices sit near $480,000 in Austin against $585,000 in Denver — at 20% down, about $21,000 apart in cash up front, before property tax rates in Texas and Colorado enter the picture.
Taxes the index leaves out
Texas levies no state income tax; Colorado does. On $100,000 that is commonly $4,000–$8,000 a year of take-home, enough to offset a real gap in rent. Cost-of-living indexes exclude income tax, so comparing them alone misleads here.
The offset is rarely free, though. States without an income tax usually recover it elsewhere — property tax rates in Texas and sales tax are the usual places to look. If you plan to buy rather than rent, run the property tax number before assuming the no-income-tax state is cheaper.
Work, weather, and what else is different
Austin is a large metro of about 2.5M and growing fast; Denver is a large metro of about 3.0M and growing steadily.
Both metros have real employment in technology, which matters if you want to move without changing careers — your experience is legible to employers in both. Austin also leans on semiconductors and higher education, with employers like Tesla Gigafactory Texas and Apple. Denver leans on aerospace and energy, with Lockheed Martin and UCHealth.
The part spreadsheets leave out. Austin: Humid subtropical: January highs near 61°F/lows 40°F, July highs near 97°F/lows 75°F, hot summers with 100+ days above 90°F. Denver: January highs near 45°F/lows near 19°F with dry snow; July highs near 90°F/lows near 60°F, low humidity, over 300 sunny days a year.
No state income tax, but Texas relies heavily on property tax — effective rates in the Austin metro run roughly 1.8-2.2%, among the highest in the country. No local income tax, but Denver charges a flat monthly Occupational Privilege Tax (~$5.75/employee) on anyone working in the city, and elevation (5,280 ft) affects some newcomers physically.
Cost indexes derive from Bureau of Economic Analysis Regional Price Parities; rent, home prices and local tax rates are compiled from market and municipal sources. How these are compiled and updated.
Related tools
Paycheck calculator — take-home after federal, state and local tax. Salary calculator — hourly and annual conversion. Mortgage calculator — what a home in either metro actually costs monthly. Guide: the true cost of relocating.