Austin vs Denver: cost of living compared

Denver is 8% more expensive than Austin overall. Austin (TX) has no state income tax; CO tops out around 4.4%.

Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.

The big picture

Comparing Austin and Denver, the overall cost of living is higher in Denver. This difference is largely driven by housing expenses, which are significantly greater in the Colorado capital. Other categories like food and miscellaneous expenses also contribute to Denver's higher price tag, though some costs, such as utilities, are more favorable there. Austin presents a more affordable option overall, primarily due to its comparatively lower housing market.

Housing

Housing costs are a major differentiator, with both buying and renting being more expensive in Denver. The median home price in Denver is noticeably higher than in Austin, and a similar gap exists for one-bedroom rents. Both cities feature a mix of housing types, from single-family homes to apartments. While property taxes and insurance vary, the initial purchase price and monthly rent are considerably steeper in Denver.

Taxes and everyday costs

Daily expenses also show differences. Colorado has a state income tax, unlike Texas, which impacts take-home pay. Transportation costs are roughly similar, with Austin being slightly higher. Food and healthcare expenses are somewhat greater in Denver, while utilities are more affordable there. These factors mean that everyday spending, beyond housing, will generally be higher in Denver due to the income tax and several other categories.

Lifestyle trade-offs

Lifestyle differences are notable. Austin is known for its warm, humid climate and flat terrain, while Denver offers a drier, high-altitude environment with four distinct seasons and proximity to mountains. Both cities have growing populations, but Denver generally feels a bit more dense. Commute times are quite similar in both metros. Austin's public transit is developing, while Denver has a more established light rail system, but both remain car-centric.

Bottom line

For those weighing a move, Austin generally offers a more budget-friendly option, largely because its housing market, while still expensive, is less demanding than Denver's. The absence of a state income tax in Texas also provides a financial advantage for Austin residents. While Denver might offer some savings on utilities, the higher costs across housing, food, healthcare, and the presence of state income tax mean a larger household budget is typically required there.

Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Denver home with the True Cost Calculator.

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