Moving Guides

Austin or Denver: which city should you move to?

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This article is part of our Moving Guides.

Last updated October 23, 2026

Austin vs Denver is a choice between lower costs and heat in Austin, and higher pay and four seasons in Denver. Austin rents are lower and falling, Texas has no state income tax, and the job market had lower unemployment in summer 2026. Denver pays more on average, has a train to the airport and sits at the foot of the mountains, but you pay Colorado’s 4.4% income tax and higher sales tax. Pick Austin if you want to stretch a salary and don’t mind long, hot summers. Pick Denver if you’d trade some take-home pay for a cooler, drier climate and easier car-light living downtown. The side-by-side table is just below.

1-bedroom rent, Austin / Denver$1,174 / $1,427Apartment List medians, October 2026. Zumper average for Austin: $1,305
State and city income tax on $75,000$0 / ~$2,660Texas vs Colorado 4.4% plus Denver head tax
Metro unemployment3.9% / 4.6%BLS, August 2026, preliminary
Average hourly wage$35.85 / $39.28BLS, May 2025 data

How do Austin and Denver compare side by side?

Where our Austin guide and Denver guide already cite a figure, we use the same one here. Our Austin posts use Zumper for rent and our Denver posts use Apartment List, because Zumper’s Denver page contradicts itself. To compare like with like, the table also shows Apartment List’s figure for both cities.

MeasureAustinDenver
1-bedroom rent, same source$1,174 median, rents down 2.3% from a year ago (Apartment List, October 2026)$1,427 median, rents down 3.1% from a year ago (Apartment List, October 2026)
1-bedroom rent in our city guide$1,305 average, down 12% from a year ago (Zumper, October 22, 2026)$1,427 (Apartment List, October 2026)
City population1,002,632 (Census Bureau, July 2025)740,613 (Census Bureau, July 2025)
Metro populationAbout 2.62 million (Census Bureau via FRED, July 2025)About 3.09 million (Census Bureau via FRED, July 2025)
Sales tax8.25% (Kintsugi, September 2026)9.15% in most of the city (Kintsugi, September 2026)
State income taxNone (Tax Foundation, 2026)4.4% flat for 2026 (Tax Foundation, February 2026)
City income taxNoneHead tax of $5.75 a month if you earn $500 or more a month working in Denver
Living wage, one adult, no children$23.69 an hour, $49,279 a year, Travis County (MIT, February 2026)$26.63 an hour, $55,384 a year, Denver County (MIT, February 2026)
Minimum wage$7.25 federal; Texas has no higher rate (U.S. Department of Labor, July 2026)$19.29 in Denver for 2026 (City and County of Denver)
TransitCapMetro: $1.25 local bus, capped at $2.50 a day. One commuter rail line, MetroRail, $3.50. Light rail targeted for 2033RTD: $2.75 for 3 hours, $5.50 day pass, $88 monthly pass. Light rail and commuter rail, including the A Line to the airport
Need a car?Yes, for most peopleNot in central Denver, though many people want one for the mountains
Average commute23.7 minutes (Census ACS, 2020 to 2024)24.9 minutes (Census ACS, 2020 to 2024)
July average high / low96.6°F / 75.0°F (NOAA 1991–2020 normals, Camp Mabry)89.9°F / 60.2°F (NOAA 1991–2020 normals, DEN airport)
January average high / low62.5°F / 41.8°F44.6°F / 18.7°F
Rain and snow in a typical yearAbout 36 inches of rain; snow is rare14.48 inches of precipitation; about 47 inches of snow at the airport (NWS estimate)
Metro unemployment3.9% (BLS, August 2026, preliminary)4.6% (BLS, August 2026, preliminary)
Average hourly wage, all jobs$35.85 (BLS, May 2025 data)$39.28 (BLS, May 2025 data)
Major industriesTech, state government and the University of Texas, business services, constructionBusiness services, government, health care, aerospace, energy and mining headquarters
Weather risksFlash floods, extreme heat, ice storms, hailHail, wildfire smoke and ozone, heavy spring snow

Sources for every row are listed at the bottom of the page. Our Denver guide gives the metro as about 3.05 million, a 2024 figure; the 3.09 million here is the newer July 2025 estimate.

Is Austin or Denver cheaper to live in?

Austin is cheaper on rent, taxes and the basic budget. Apartment List’s October 2026 reports put a one-bedroom at $1,174 in Austin and $1,427 in Denver, a gap of about $250 a month (Apartment List Austin; Apartment List Denver). Zumper’s average asking rent, the figure our Austin guide and our other Austin comparisons use, is $1,305 for a one-bedroom in Austin, down 12% from a year earlier (Zumper, October 22, 2026). The two sources measure rent differently, so compare each city only within one source. Both cities have a lot of new apartments, and both saw rents fall over the past year. That’s a good time to ask about move-in deals.

MIT’s Living Wage Calculator puts the basic budget for one adult at $49,279 a year before taxes in Travis County and $55,384 in Denver County (MIT, Travis County; MIT, Denver County, February 2026). Sales tax is 8.25% in Austin and 9.15% in most of Denver (Kintsugi Austin; Kintsugi Denver, September 2026).

Car insurance is close. Insurify’s October 2026 averages are about $221 a month for full coverage in Austin and about $225 in Denver (Insurify Austin; Insurify Colorado). Your own quote will differ. For the full budget in each city, see the cost of living in Austin and the cost of living in Denver. For leases, deposits and fees, see how renting works in Austin and how renting works in Denver.

How much more tax do you pay in Denver than in Austin?

Texas has no state income tax (Tax Foundation, February 2026). Colorado has a flat 4.4% income tax for 2026 (Tax Foundation, February 2026). Colorado starts from your federal taxable income, so the federal standard deduction, $16,100 for a single filer in 2026, comes off first (IRS, October 2025). Amendment 87, on the November 3, 2026 ballot, would replace the flat rate with graduated rates, so check the result if you’re moving in 2027 (CPR News, September 2026; Ballotpedia News, September 2026).

Denver adds a small city tax on work. Its Occupational Privilege Tax, often called the head tax, takes $5.75 a month from anyone who earns at least $500 in a month working in Denver, which is $69 a year (City and County of Denver, accessed October 2026). Your employer pays a separate $4 a month.

What does that mean on a $75,000 salary?

Here is a simple example for a single person earning $75,000 in wages, working in the city they live in and taking the standard deduction, with no Colorado additions or subtractions to federal taxable income. Federal income tax, Social Security and Medicare are the same in both cities, so they’re left out.

StepAustinDenver
Salary$75,000$75,000
Standard deduction used for state taxNot applicable$16,100 (federal)
State taxable income$0 (no income tax)$58,900
State income tax$0About $2,592 (4.4%)
City head tax$0$69
Total state and city$0About $2,660 a year, or roughly $220 a month

This is our own math from published rates, not tax advice. Credits, other income and Colorado’s own adjustments to federal income will change your real number. Add the rent gap and the Austin renter in this example keeps roughly $5,700 more a year (about $3,000 in rent at the Apartment List medians, plus the tax), before any difference in pay. Denver’s higher average wage can close that gap, so compare actual offers.

Which city has the better job market?

Austin had lower unemployment in August 2026. Denver pays more on average.

  • Unemployment. 3.9% in the Austin metro and 4.6% in the Denver metro in August 2026, both preliminary and not seasonally adjusted (BLS Austin; BLS Denver). Denver’s total jobs were flat from a year earlier; Austin’s were up 1.2%.
  • Pay. The average hourly wage across all jobs was $35.85 in Austin and $39.28 in Denver, against $33.54 nationally (BLS, May 2025 data, released August 2026). That’s about $74,600 and $81,700 a year at 2,080 hours.
  • Minimum wage. Denver’s is $19.29 an hour in 2026 (City and County of Denver, August 2025). Texas uses the federal $7.25 (U.S. Department of Labor, July 2026).

Austin mixes tech with government and the university. Professional and business services had about 292,100 jobs and government about 201,100 in August 2026 (BLS). Dell is headquartered in Round Rock, and Tesla’s Giga Texas had 16,506 workers at the end of 2025, down from 21,191 a year earlier (Austin American-Statesman, April 2026). The information sector, which includes much of tech, shrank 3.7% over the year to August. More in our Austin job market guide.

Denver is broader. Professional and business services had about 318,200 jobs, government about 228,100, and health care and education about 228,700 (BLS, August 2026). Newmont, DaVita, VF Corp. and Ovintiv were the Fortune 500 companies based in the city on the 2025 list (Axios Denver, June 2025). The information sector fell 7.5% over the year to August. More in our Denver job market guide.

Do you need a car in Austin or Denver?

In Austin, most people do. In central Denver, many people don’t.

Denver has RTD buses, light rail and commuter rail. The A Line runs from Union Station to Denver International Airport. Fares are $2.75 for three hours, $5.50 for a day, $88 for a month and $10 for an airport day pass, and riders 19 and under ride free (RTD, October 2026). Some rail lines are changed or suspended during downtown rail work through 2027 (RTD service changes, September 2026). About 56% of Denver workers drove alone to work in 2024 and about 27% worked from home (Data USA, Census data for 2024). See how public transit works in Denver and do you need a car in Denver.

Austin relies on CapMetro buses. A local ride is $1.25, capped at $2.50 a day and $41.25 a month when you pay with the Umo app or a reloadable card, rising to $1.50 on January 10, 2027 (CBS Austin, September 2026). Two new MetroRapid lines reached full service in June 2026, with weekday buses every 10 minutes (CapMetro, June 2026). The one rail line, the MetroRail Red Line, is a commuter train with a $3.50 fare. Light rail construction is set to start in 2027, with first trains targeted for 2033 (KUT, July 2026). See how public transit works in Austin and do you need a car in Austin.

Gas prices change weekly. Check AAA for Texas and Colorado.

Is the weather better in Austin or Denver?

It depends on whether you mind heat or cold more. Austin’s July averages are 96.6°F for the high and 75.0°F for the low, and January is mild at 62.5°F and 41.8°F (NOAA 1991–2020 normals, Camp Mabry). Austin gets about 36 inches of rain a year. Denver’s July averages are 89.9°F and 60.2°F, so summer nights cool off. January averages 44.6°F and 18.7°F (NOAA, Denver International Airport). Denver is dry, with 14.48 inches of precipitation a year, and gets about 47 inches of snow at the airport in a typical season, by the National Weather Service’s estimate for 1991–2020. The older Central Park station in the city, the figure our Denver weather guide uses, averages 49 inches (NWS Boulder). Snow usually melts within days.

  • Austin: flash floods are the deadliest risk. The July 4 weekend floods in 2025 killed at least 137 people across Central Texas (Community Impact, July 2026). Heat varies by year: Austin had 22 days at 100°F or hotter in 2025, against a record 90 in 2011 (Axios Austin, October 2025; KXAN, August 2020). Ice storms are rare but serious. In February 2023, about 174,000 Austin Energy customers lost power at the peak (Austin Monitor, March 2023).
  • Denver: hail is the costliest risk. A 2017 Denver-area hailstorm caused about $2.3 billion in insured losses (9News, May 2018). Summer brings wildfire smoke and ozone; the EPA classifies the metro as in severe non-attainment for the 2008 ozone standard (The Denver Post via Governing, September 2026). March is the snowiest month, and spring storms can be heavy and wet.

More detail: Austin weather and Denver weather.

What are the neighborhoods like in each city?

In Austin, Downtown and Rainey Street have the best transit and the highest rents. East Austin, South Congress and Hyde Park near UT are close-in options, and East Riverside and North Austin cost less. Many tech workers live near The Domain or in Round Rock, Cedar Park and Pflugerville. In Denver, Capitol Hill and Uptown are walkable and relatively affordable. LoDo near Union Station suits car-free living, and RiNo, Highland and Baker are popular with newcomers. Aurora, Lakewood and Englewood are cheaper suburbs on rail lines.

Our neighborhood guides have rents and trade-offs for each: best Austin neighborhoods for newcomers and best Denver neighborhoods for newcomers. If you’re signing a lease before you arrive, read how to find an apartment in another city.

Should you move to Austin or Denver?

Choose Austin if keeping costs down matters most. Lower rent and no state income tax add up to thousands of dollars a year for a typical single renter. It suits people in tech, government and higher education, and people who like warm winters and can handle long, hot summers. Plan on a car.

Choose Denver if you want four seasons, cool summer nights, easy trips to the mountains, and a downtown where you can live without a car. Average pay is higher, and the minimum wage is far higher. Expect to pay more in rent and taxes, and check job openings in your field, since Denver’s job growth was nearly flat in 2026.

Next steps: moving to Austin and moving to Denver.

Want all nine cities side by side? Our Big City Moving Index compares rent, the income you need, minimum wage, taxes and transit across every city we cover.

Frequently asked questions about Austin vs Denver

Is Austin or Denver cheaper?

Austin. A one-bedroom has a median rent of $1,174 in Austin and $1,427 in Denver (Apartment List, October 2026). Texas also has no state income tax, while Colorado charges 4.4% and Denver adds a $5.75 monthly head tax.

Does Colorado or Texas have a state income tax?

Colorado does: a flat 4.4% for 2026. Texas has none. On a $75,000 salary, a single Denver resident who works in the city pays about $2,660 a year in state income tax and head tax combined, by our math.

Which has better public transit, Austin or Denver?

Denver. RTD runs light rail and commuter rail, including a train to the airport. Austin has buses, MetroRapid lines and one commuter rail line, with light rail not expected until about 2033. Austin’s fares are cheaper.

Does it snow more in Denver than Austin?

Much more. Denver averages about 47 inches of snow a season at the airport (NWS estimate), though it usually melts within days. Snow is rare in Austin, but ice storms, like the one in February 2023, can knock out power.

Sources

Go Big City Team
Author: Go Big City Team

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