Denver vs Sacramento: cost of living compared
Sacramento is about the same as Denver overall. State income tax tops out around 4.4% in CO vs 9.3% in CA.
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
Overall, the cost of living in Denver and Sacramento is roughly similar, both notably higher than the national average. However, the composition of these costs differs significantly. Denver's higher housing expenses are a primary driver of its overall cost, while Sacramento's higher utility costs and transportation expenses contribute more to its total. Food and healthcare costs are comparable between the two metros, with minor differences.
Housing
Housing costs present a noticeable difference, with both buying and renting being more expensive in Denver. Median home prices are higher there, as are typical rents for a one-bedroom apartment. Sacramento offers somewhat more affordable housing options. Beyond the initial purchase, property taxes can vary, and both metros may have varying home insurance costs depending on location and specific property characteristics.
Taxes and everyday costs
Daily expenses show some variation. Sacramento residents face considerably higher state income taxes, which impacts take-home pay. Transportation costs are greater in Sacramento, while Denver has slightly lower utility expenses. Food costs are a bit higher in Sacramento, though healthcare expenses are quite similar in both locations, making day-to-day spending patterns distinct.
Lifestyle trade-offs
Lifestyle differences extend beyond cost. Denver experiences a distinct four-season climate with snowy winters and abundant sunshine, offering mountain access and outdoor recreation. Sacramento has a Mediterranean climate with hot, dry summers and mild, wet winters, close to wine country and coastal areas. Commute times are generally a bit shorter in Denver, while Sacramento's can be slightly longer.
Bottom line
For a household budget, moving between these metros means trading one set of financial priorities for another. Denver typically demands more for housing, while Sacramento requires a larger portion of income for state taxes, utilities, and transportation. Both metros offer a high quality of life at a cost above the national average, making careful budgeting essential in either location.
| Measure | Denver, CO | Sacramento, CA |
|---|---|---|
| Overall cost of living (US avg = 100) | 128 | 128 |
| Housing index | 146 | 132 |
| Transportation index | 104 | 110 |
| Food index | 105 | 108 |
| Healthcare index | 108 | 108 |
| Utilities index | 98 | 125 |
| Misc index | 108 | 105 |
| Median home price | $548,000 | $498,000 |
| Median 1-bedroom rent | $1,950/mo | $1,750/mo |
| Average commute | 28 min | 30 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Sacramento home with the True Cost Calculator.