Colorado vs Arizona

Enter your current annual income to compare its purchasing power between the two states.

In $100,000 in Colorado

$96,993

Price level 103.1

The same income in Arizona

$99,305

Price level 100.7

$100,000 has $2,312 more purchasing power in Arizona.

Figures are in national-average dollars: what the income buys once each state's prices are accounted for (US = 100). Source: BEA Regional Price Parities, 2024, released February 19, 2026. How it's calculated

Salary needed in Arizona

$97,672

to match $100,000 in Colorado, before tax.

We compare it with your current income after local prices.

Show the math
adjusted = income ÷ (RPP ÷ 100)
Colorado: $100,000 ÷ (103.1 ÷ 100) = $96,993
Arizona: $100,000 ÷ (100.7 ÷ 100) = $99,305
difference: $99,305 − $96,993 = +$2,312
Where the difference comes fromPrice components

Where the difference comes from

Price level by component, 100 = US average. The Difference column compares the destination price level with the origin; higher means the destination is more expensive.

Regional price parity by component for the two states, with the percentage difference.
Component Colorado Arizona Difference
All items 103.1 100.7 −2.3%
Housing rents 127.4 106.8 −16.2%
Goods 98.7 95.4 −3.3%
Utilities 85.0 92.3 +8.6%
Other services 99.6 102.8 +3.2%

BEA Regional Price Parities · SARPP · 2024 · rel. February 19, 2026 · Official data

Housing reality checkRent, homes & property tax

Housing reality check

ACS median gross rent, home value, and real estate taxes paid — statewide context beyond the index.

Colorado Median rent$1,761/mo Median home$539,400 Median property tax paid$2,602/yr
Arizona Median rent$1,543/mo Median home$394,500 Median property tax paid$1,879/yr

US Census ACS 5-Year Estimates · ACS5 · 2024 · rel. December 2025 · Official data

Tax at a glanceIncome & sales tax

Tax at a glance

Hand-curated, tax year 2026 · verified 2026-07-20

Top marginal and average combined rates do not estimate a household's total tax liability.

Income and sales tax for the two states.
Tax Colorado Arizona
Income tax (top rate) 4.40% 2.50%
Sales tax (combined avg) 7.89% 8.52%

Tax Foundation (income & sales) · Tax · 2026 · rel. tax year 2026 · Manually maintained · verified 2026-07-20

Official data Manually maintained 2 of 3 metrics sourced from official sources, 1 manually maintained. How every number is calculated →

Who comes out ahead in Arizona?

The answer depends on your situation. Each card compares statewide medians for one situation; the state named is the one the numbers favor.

Keeping the same salary (remote work, pension) Favors Arizona

An unchanged income buys about 2.4% more in Arizona than in Colorado. On $100,000 that is $2,312 of national-average purchasing power a year.

Renting Favors Arizona

Median gross rent is $1,761 in Colorado and $1,543 in Arizona, $218 a month ($2,616 a year) less in Arizona. Renters spend a median 31.4% and 30.8% of income on rent.

Buying a home Favors Arizona

The median home is worth $539,400 in Colorado (5.6× median household income) and $394,500 in Arizona (4.9×). Median property taxes equal 0.48% and 0.48% of the median home value.

Earning a typical local income Favors Colorado

Median household income is $95,470 in Colorado and $79,964 in Arizona. After adjusting for prices, that is $92,599 and $79,408: local pay goes further in Colorado.

Looking for work Favors Colorado

Unemployment is 3.9% in Colorado and 4.9% in Arizona (July 2026). Colorado has the tighter labor market by 1.0 points. Pay for specific jobs is compared below.

Colorado and Arizona head to head

Statewide figures the calculator above does not show. “Edge” (bold on small screens) marks the state with the lower cost or higher income on that row; rows without a clear better direction are left blank.

Colorado compared with Arizona on income, housing, taxes, and jobs.
MeasureColoradoArizonaEdge
Income
Median household income $95,470 $79,964 Colorado
Adjusted for local prices $92,599 $79,408 Colorado
Housing
Homeownership rate 66.2% 67.4%
Rent as % of renter income 31.4% 30.8% Arizona
Owner costs as % of income 18.7% 16.7% Arizona
Home value ÷ household income 5.6× 4.9× Arizona
Home price change, 2020–2025 · FHFA index +38.1% +53.1%
Taxes
Top income tax rate 4.40% (flat) 2.50% (flat) Arizona
Combined sales tax (avg) 7.89% 8.52% Colorado
Median property tax paid $2,602 $1,879 Arizona
Property tax ÷ home value 0.48% 0.48%
Jobs
Unemployment (July 2026) 3.9% 4.9% Colorado
Minimum wage $15.16/hr $15.15/hr
Everyday costs
Median rent, 2 bedrooms $1,782/mo $1,541/mo Arizona
Average electric bill (2024) $101/mo $160/mo Colorado
Electricity price 14.9¢/kWh 14.9¢/kWh Arizona
Health care spending per person (2025) $9,528 $9,228
All consumer spending per person (2025) $68,438 $58,361
People
Population change since July 2020 +3.9% +6.1%
Net moves from other states +10,528 +252,762
Median age 37.7 39.0
Bachelor's degree or higher (25+) 45.7% 33.3%
No health insurance 7.7% 10.5% Colorado
Average commute 25.2 min 25.4 min Colorado
Crime (2025, per 100,000 residents)
Violent crime 421.7 377.9 Arizona
Property crime 2,143.6 1,513.5 Arizona
Murder 3.6 4.5 Colorado
Climate (1991–2020 averages)
Average temperature 46.2°F 61.1°F
July average high 83.5°F 95.2°F
January average low 13.7°F 30.6°F
Precipitation 18.0 in 11.6 in

Sources: Census ACS 2024 5-year estimates, FHFA house price index via FRED, BLS LAUS, Tax Foundation 2026, US DOL minimum wage, EIA, BEA consumer spending, Census population estimates, FBI crime estimates, and NOAA statewide climate. Median property tax covers owner-occupied homes. Spending is in current dollars and reflects both prices and incomes.

Who is moving between Colorado and Arizona

Colorado → Arizona10,284±2,531
Arizona → Colorado9,762±2,707

In 2024, about 10,284 people living in Arizona had lived in Colorado a year earlier, and about 9,762 made the opposite move. The difference (+522 for Arizona) is within the survey's margin of error, so the flow is roughly balanced.

Census State-to-State Migration Flows (ACS 1-year, 2024). ± values are 90% margins of error. Colorado and Arizona profiles list each state's largest sources and destinations. What the biggest moves trade →

Salary in Arizona that matches your Colorado pay

Pre-tax salary needed in Arizona to keep the same purchasing power, using the all-items price levels (103.1 and 100.7).

Salary in ColoradoEquivalent in ArizonaDifference
$40,000 $39,069 −$931
$60,000 $58,603 −$1,397
$80,000 $78,138 −$1,862
$100,000 $97,672 −$2,328
$150,000 $146,508 −$3,492
$200,000 $195,344 −$4,656

What the same job pays in Colorado and Arizona

BLS median annual wages (May 2025), then the same wages adjusted for each state's price level. The last column names the state where the job's median pay buys more.

OccupationColoradoArizonaCO adjustedAZ adjustedGoes further in
Registered Nurses $100,260 $99,500 $97,245 $98,808 Arizona
Software Developers $138,390 $129,690 $134,229 $128,788 Colorado
Elementary School Teachers $63,410 $56,590 $61,503 $56,197 Colorado
Electricians $62,230 $61,060 $60,359 $60,636 Arizona
Heavy & Tractor-Trailer Truck Drivers $61,500 $58,080 $59,651 $57,676 Colorado
Accountants and Auditors $97,030 $79,970 $94,113 $79,414 Colorado
Police & Sheriff’s Patrol Officers $97,350 $78,880 $94,423 $78,332 Colorado
Pharmacists $156,030 $146,930 $151,339 $145,909 Colorado
Dental Hygienists $109,580 $101,010 $106,285 $100,308 Colorado
Welders, Cutters, Solderers & Brazers $58,590 $55,600 $56,828 $55,214 Colorado

Prices inside each state

A statewide price level averages cities and rural areas. The BEA also publishes price levels for metro areas; here is the range in each state.

Colorado

  • Lowest Pueblo, CO 91.8
  • Highest Denver-Aurora-Centennial, CO 105.8
  • Metro areas 7

Arizona

  • Lowest Sierra Vista-Douglas, AZ 89.2
  • Highest Phoenix-Mesa-Chandler, AZ 103.3
  • Metro areas 7

Compare two metro areas directly →

Colorado vs Arizona: the read

The bottom line

Compare a $100,000 income in Colorado and Arizona: its purchasing power is $96,993 and $99,305, respectively, in national-average terms — a gain of $2,312. Arizona is the cheaper of the two, running at 100.7 on the price index versus 103.1.

Where the difference comes from

The widest gap on the index is housing rents: Colorado sits at 127.4 and Arizona at 106.8 (100 = national), and Arizona has the edge there. Rent is also the largest item in most household budgets, so this gap does the most to separate the two states' overall price levels.

Housing

Median rent runs $1,761 in Colorado against $1,543 in Arizona, and the typical home $539,400 versus $394,500. Arizona is the more affordable place to buy.

Taxes

On tax, Colorado has 4.40% top income tax and a combined sales tax of 7.89%; Arizona has 2.50% top income tax and 8.52%. Those headline rates are useful screening facts, but they do not calculate either household's total liability.

Full profiles: Colorado · Arizona. Every figure here is sourced on the pages linked above.

Colorado vs Arizona: common questions

Is it cheaper to live in Colorado or Arizona?

Arizona is cheaper overall. Its price level is 100.7 against 103.1 in Colorado (US = 100), so the same basket of goods and services costs about 2.3% less there. The difference is usually largest for rent.

What salary in Arizona matches $100,000 in Colorado?

About $97,672, before tax. That is $100,000 × 100.7 ÷ 103.1. Income tax, your actual rent or mortgage, and commuting costs can all shift the break-even point.

Which state has lower taxes, Colorado or Arizona?

Colorado has a flat income tax with a top rate of 4.40% and an average combined sales tax of 7.89%. Arizona has a flat income tax with a top rate of 2.50% and 8.52%. Median real estate taxes paid by owners are $2,602 and $1,879 a year. Which state costs a household less depends on its income, spending, and whether it owns a home.

Do people earn more in Colorado or Arizona?

Median household income is $95,470 in Colorado and $79,964 in Arizona. Adjusted for prices, that is $92,599 and $79,408 in national-average dollars, so households in Colorado have more purchasing power at the median.

Are more people moving from Colorado to Arizona or the other way?

In 2024, about 10,284 people moved from Colorado to Arizona and about 9,762 moved from Arizona to Colorado, according to Census state-to-state migration estimates. The difference is within the margin of error, so the two flows are roughly balanced.

Comparing a different pair? Use the full tool →