This article is part of our Moving to Denver guide.
Last updated October 19, 2026
A single adult with no kids needs about $55,384 a year before taxes to cover basic costs in Denver, according to MIT’s Living Wage Calculator. That works out to $26.63 an hour, or roughly $4,615 a month. Housing is the biggest line by far. A typical Denver apartment rents for $1,613 a month (Apartment List, October 2026), and that figure is down 3.1% from a year ago.
What does a basic Denver budget look like?
MIT’s Living Wage Calculator estimates what one adult needs to cover the basics in Denver County with no savings cushion and no extras. It is a floor, not a comfortable lifestyle. Here is how MIT splits it up (updated February 15, 2026). Monthly figures are the annual numbers divided by 12.
| Expense (1 adult, 0 children) | Per year | Per month |
|---|---|---|
| Housing | $19,291 | $1,608 |
| Taxes | $9,851 | $821 |
| Transportation | $7,116 | $593 |
| Other (clothing, household items, personal care) | $4,992 | $416 |
| Food | $4,779 | $398 |
| Civic (recreation, entertainment, etc.) | $3,876 | $323 |
| Medical | $3,199 | $267 |
| Internet and mobile | $2,281 | $190 |
| Total before taxes | $55,384 | $4,615 |
For comparison, Denver’s own minimum wage is $19.29 an hour in 2026 (denvergov.org). A full-time worker at that rate earns about $40,000 a year, well short of MIT’s number. If you are job hunting, our guide to the Denver job market covers who is hiring.
How much is rent in Denver?
Apartment List puts Denver’s median rent at $1,613 in October 2026. A one-bedroom runs about $1,427 and a two-bedroom about $1,778. Rents fell 3.1% over the past year, so newcomers have a bit more room to negotiate than they did in the boom years.
Other trackers show higher averages. RentCafe, which focuses on large professionally managed buildings, reported a $1,725 average for a one-bedroom and $2,239 for a two-bedroom as of September 30, 2026. Expect newer buildings downtown or in RiNo to land closer to RentCafe’s numbers.
| Unit size | Apartment List median (Oct 2026) | RentCafe average (Sept 2026) |
|---|---|---|
| Studio | Not reported | $1,433 |
| 1 bedroom | $1,427 | $1,725 |
| 2 bedrooms | $1,778 | $2,239 |
| All units | $1,613 | $1,922 |
Budget for upfront costs too: application fees, a security deposit and often first month’s rent. Our guide to how renting works in Denver explains the rules. To compare specific buildings by size, age and amenities, browse our sister site, DenverApartmentBuildings.com.
What taxes will you pay in Denver?
- State income tax, a flat 4.4% of Colorado taxable income for tax years 2025 and 2026. Colorado can trigger a temporary rate cut when state revenue runs far enough over its TABOR limit; that happened in 2024 (4.25%), but not for 2025. Voters will decide on November 3, 2026 whether to replace the flat tax with graduated rates (Amendment 87), so check for changes after the election.
- Denver’s Occupational Privilege Tax, often called the “head tax.” If you earn at least $500 in a month for work done in Denver, your employer withholds $5.75 that month, or $69 a year. Your employer pays a separate $4 per employee.
- Sales tax, 9.15% in most of Denver: 2.9% state, 5.15% city and 1.1% for special districts including RTD. The city rate rose from 4.81% on January 1, 2025, after voters approved Measure 2Q to fund Denver Health. Groceries bought to cook at home are exempt from state and city sales tax.
- Property tax, which renters don’t pay directly. Landlords pay it and build it into rent.
There is no separate Denver city income tax beyond the $5.75 monthly head tax.
How much are utilities in Denver?
Xcel Energy supplies both electricity and natural gas in Denver. In August 2026, state regulators approved an electric rate increase that adds about $5 a month to the average residential bill, a 4.77% bump. Xcel lists the effective date as August 29, 2026. Xcel had asked for roughly twice as much. Natural gas is a separate line on the same bill and runs highest in winter.
Denver Water’s average single-family customer in the city pays about $56.97 a month in 2026, according to Denverite. Many apartment renters never see that bill. Landlords often pass water, sewer and trash costs through as a flat or shared monthly fee, so ask what is included before you sign. Temporary drought charges have applied to outdoor water use since June 2026 bills, and the board is weighing another rate increase for 2027.
What does it cost to own a car in Denver?
A car is often the second-biggest expense after rent. AAA’s 2026 Your Driving Costs study puts the average cost to own and operate a new vehicle at $12,863 a year, or about $1,072 a month, once you count depreciation, insurance, fuel, maintenance, financing and fees. That assumes 15,000 miles a year over five years.
- Insurance: Insurify estimates Denver drivers pay about $225 a month for full coverage and $112 a month for liability-only (rates current as of September 30, 2026). That is above the Colorado averages of $217 and $97.
- Gas: Prices change week to week. AAA posts the current Colorado and Denver averages at gasprices.aaa.com.
- Parking and registration: Many Denver apartment buildings charge for parking separately, and registering a car in Colorado includes Colorado’s specific ownership tax.
Whether you need a car depends on where you live and work. Our post on whether you need a car in Denver walks through the tradeoffs.
How much does public transit cost?
RTD runs Denver’s buses and light rail. A monthly pass costs $88, or $1,056 a year. A single 3-hour pass is $2.75, a day pass is $5.50 and an airport day pass is $10. If you pay with Tap-n-Ride or a MyRide account, fare capping turns your trips into a day or monthly pass automatically, so you never pay more than the pass price.
Riders 65 and over, people with disabilities, Medicare recipients and those in the income-based LiVE program pay $27 a month, airport trips included. Youth 19 and under ride free. RTD’s board voted against raising fares in July 2026 but moved ahead with about $20 million in service cuts for 2027, with routes to be set by June 2027. See our guide to Denver public transit for routes and tips.
How much does food cost in Denver?
MIT budgets $4,779 a year for food for one adult, about $398 a month. That assumes mostly cooking at home.
How does Denver compare with other big cities?
Using the same MIT method for one adult with no children, Denver sits near Atlanta, costs more than Dallas, Austin and Chicago, and costs far less than Manhattan.
| County (city) | Living wage per year | Per hour | Housing per year |
|---|---|---|---|
| New York County (Manhattan) | $79,469 | $38.21 | $35,525 |
| Fulton County (Atlanta) | $55,599 | $26.73 | $19,875 |
| Denver County (Denver) | $55,384 | $26.63 | $19,291 |
| Cook County (Chicago) | $52,909 | $25.44 | $17,405 |
| Travis County (Austin) | $49,279 | $23.69 | $18,213 |
| Dallas County (Dallas) | $48,489 | $23.31 | $17,805 |
Denver needs about $6,900 a year more than Dallas and about $24,000 less than Manhattan. Texas has no state income tax, which explains part of the gap with Dallas and Austin. All figures are from MIT’s February 15, 2026 update. If you are still planning the trip itself, see our guide to the cost of moving across the country.
Denver ranks 2nd of the nine cities in our Big City Moving Index on how easy it is to afford alone: a typical one-bedroom takes about 31% of the income MIT says one adult needs there. Denver also has the highest minimum wage of the nine, $19.29 an hour. The index puts rent, the income you need, minimum wage, taxes and transit for all nine cities side by side.
Frequently asked questions about the cost of living in Denver
What salary do you need to live in Denver?
MIT estimates a single adult needs $55,384 a year before taxes ($26.63 an hour) to cover basics. You will want more than that to save, pay down debt or live alone in a newer building.
Is Denver rent going up or down?
Down for now. Apartment List’s October 2026 report shows the median at $1,613, 3.1% lower than a year ago.
Does Denver have a city income tax?
Not a percentage tax. Denver charges an Occupational Privilege Tax of $5.75 a month to employees who earn at least $500 a month working in the city. Colorado’s state income tax is a flat 4.4%.
Is Denver cheaper than Austin or Dallas?
No. MIT’s living wage for one adult is $55,384 in Denver, compared with $49,279 in Travis County (Austin) and $48,489 in Dallas County.
Sources
- Living wage, Denver: MIT Living Wage Calculator, Denver County, Colorado (February 2026)
- Living wage comparisons: MIT, Dallas County, Fulton County, Travis County, Cook County, New York County (February 2026)
- Rent: Apartment List, Denver Rent Report (October 2026)
- Rent comparison: RentCafe, Denver average rent (September 2026)
- Minimum wage: City and County of Denver, Citywide Minimum Wage (2026)
- State income tax: CPR News, Amendment 87: Graduated income tax (September 2026)
- Income tax history: NerdWallet, Colorado state income tax rates (December 2025)
- Occupational Privilege Tax: Patriot Software, Colorado Occupational Privilege Taxes (October 2024)
- Sales tax: Kintsugi, Denver sales tax guide (September 2026)
- Measure 2Q: Denver7, Denver voters approve sales tax increase to help fund Denver Health (November 2024)
- Grocery tax exemption: Commenda, Is food taxable in Colorado? (January 2026)
- Electric rates: Xcel Energy, 2025 Colorado Electric Rate Review (August 2026)
- Electric bill increase: CPR News, Xcel Energy bills will rise by $5 a month (August 2026)
- Water rates: Denver Water, 2026 rates (2026)
- Water bills: Denverite, Denver Water bills could rise in 2027 (September 2026)
- Car ownership: AAA, Your Driving Costs 2026 fact sheet (September 2026)
- Car insurance: Insurify, Average cost of car insurance in Colorado (Denver city table) (October 2026)
- Gas prices: AAA, Colorado average gas prices (October 2026)
- Transit fares: RTD, Fares (October 2026)
- RTD service cuts: Denverite, RTD board votes for service cuts (July 2026)
Author: Go Big City Team
Next step: see the full Moving to Denver guide for rent, costs, transit, weather, jobs and neighborhoods in one place.