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Relocating to Colorado: state taxes, residency rules and cost of living

Official figures for Colorado: state income tax, capital gains, estate and inheritance tax, sales tax and the residency test, with rents, home values, price levels and safety from federal statistics.

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4.4%Top state income tax rate
2.9%State sales tax rate
$1,839Median gross rent per month
103.1Price level (US = 100)
Data updated 30 October 2026 Official sources: state revenue departments, Census Bureau, BEA, EIA, FBI Also served to AI agents via MCP

The short answer

What does it cost to live in Colorado?

Colorado state income tax: Flat rate of 4.4%. Median gross rent is $1,839 per month and the price level is 103.1 against a US average of 100. Sales, estate and inheritance taxes and the residency rule are set out below with their sources.

Evidence: Official source · Machine-readable data · As of 30 October 2026

State tax rules

State taxes in Colorado

Each rule below is read from the Colorado revenue department or statute and checked against an independent table. Local taxes are not included.

State income tax
Flat rate of 4.4%
Source
Capital gains
Colorado starts from federal taxable income, so capital gains are taxed at the same flat income tax rate, with a subtraction available for certain qualifying Colorado-source gains.
Source
Who is a resident
Colorado treats a person as a resident if domiciled in Colorado, or if the person keeps a permanent place of abode in Colorado and spends more than six months of the tax year there.
Source
Sales tax
Statewide rate 2.9%; local rates may be added
Source

State level only. Local income taxes (for example city or county taxes) and local sales taxes are added on top where they exist.

Cost of living

Housing, prices and safety in Colorado

Housing, prices and safety in Colorado
MetricValue
Median gross rent per month$1,839
Median home value$567,600
Property tax as a share of home value0.52%
Median real estate taxes paid per year$2,945
Median household income$99,729
Price level (US = 100)103.1
Housing price level (US = 100)127.4
Residential electricity price16.8 cents per kWh

Rent, home value, property tax and income: Census Bureau, American Community Survey 2025. Price levels: BEA Regional Price Parities 2024. Electricity: EIA, year to date through August 2026.

Back to the state overview · Methodology and sources

Questions

Living in Colorado: common questions

Does Colorado have a state income tax?

Colorado state income tax: Flat rate of 4.4%. Federal income tax applies in addition, as in every state.

What is the sales tax in Colorado?

The statewide sales tax rate in Colorado is 2.9%. Counties and cities may add local rates.

How much does housing cost in Colorado?

In Colorado the median gross rent is $1,839 per month and the median value of an owner-occupied home is $567,600, according to the Census Bureau American Community Survey 2025.

Who counts as a resident of Colorado for income tax?

Colorado treats a person as a resident if domiciled in Colorado, or if the person keeps a permanent place of abode in Colorado and spends more than six months of the tax year there.

Information, not tax or legal advice. Rates are statutory state rates for the stated year; local income, sales and property taxes, deductions and federal tax are not included. Statistics are the latest official releases for the year shown. Confirm your own position with the state revenue department or a tax adviser.

Plan the move with a specialist

Residence, tax domicile and timing decide what a move is worth. Our consultants help you weigh state tax, cost of living and your immigration status together, in confidence.

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