How Much Do You Need to Make to Live in Colorado Springs?

Colorado Springs, known for its natural beauty and outdoor recreation, attracts many individuals and families. Understanding the financial landscape of this city is important for anyone considering a move or evaluating their budget. This overview provides insights into the typical costs of living in Colorado Springs, helping residents and prospective residents understand the financial commitments involved.

Major Living Expenses

Housing is a significant monthly expenditure in Colorado Springs, with costs varying by property type and location. The average monthly rent for an apartment typically falls between $1,300 and $1,800, with one-bedroom units averaging $1,300 to $1,600 and two-bedroom units around $1,600 to $2,300. For homeownership, the median sale price for a home has recently been observed between $450,000 and $497,000.

Transportation costs are a regular expense. For car owners, a single adult relying on a personal vehicle might anticipate annual costs around $10,300, including fuel, maintenance, and insurance. Public transportation, provided by Mountain Metropolitan Transit, offers an economical alternative, with individual tickets priced at $1.75.

Food expenses contribute significantly to a household budget. A single adult’s grocery bill could average around $4,100 per year, while a family of four might spend approximately $1,640 per month. Dining out occasionally adds to this, with a three-course meal for two at a mid-range restaurant averaging around $64.

Utility costs encompass essential services like electricity, gas, water, and internet. Basic utilities for an average apartment could range from $165 to $295 per month. Energy bills alone average around $128.50 monthly. Internet services typically add another $65 to $150 per month, depending on the chosen speed and provider.

Healthcare costs are a consideration for all residents, fluctuating based on individual health needs and insurance coverage. While Colorado Springs generally sees healthcare costs slightly lower than the national average, out-of-pocket medical expenses can accumulate. An average consumer might face over $1,100 in annual out-of-pocket healthcare costs beyond insurance premiums. For those with significant medical needs, these expenses can be considerably higher.

Miscellaneous expenses cover daily needs and leisure activities. Personal care items, clothing, and entertainment contribute to overall spending. For example, a men’s shirt might cost around $30, and a movie ticket could be between $8.75 and $11. These costs reflect personal lifestyle choices.

Income Considerations

The median household income in Colorado Springs is approximately $83,200 annually. Individual incomes can differ significantly based on profession, experience, and industry. For instance, householders aged 45 to 64 typically report higher median incomes, around $102,800.

Colorado imposes a flat state income tax rate of 4.40%. Sales taxes apply to purchases of goods; the statewide rate is 2.9%, but local jurisdictions can add their own rates, leading to combined rates as high as 11.2%. Property taxes also impact homeowners, levied at the county level to fund local services. Colorado has low residential property tax rates, with an average effective rate around 0.49%. These taxes are calculated based on the assessed value and local mill levies.

The employment landscape in Colorado Springs is diverse, encompassing various industries including military, technology, and healthcare. Salary ranges are highly dependent on specific job roles and the demand within these sectors.

Determining Your Required Income

Estimating the income needed to live comfortably in Colorado Springs involves assessing expenses and financial objectives. An individual should sum their anticipated monthly costs across all major categories, including housing, transportation, food, utilities, healthcare, and miscellaneous spending. Using average figures as a starting point, one can tailor these estimates to their specific lifestyle choices. For example, a single adult might calculate their total monthly basic expenses, excluding rent, to be around $1,300.

Once total monthly expenses are determined, account for the impact of taxes to arrive at a gross income figure. Individuals can use the 4.40% state income tax rate to estimate their tax liability. Considering sales taxes on purchases and property taxes for homeowners provides a complete picture of necessary gross income. This calculation involves working backward from desired net income to determine the gross earnings required to cover all expenditures and taxes.

Beyond basic needs, a comprehensive income assessment should incorporate personal financial goals. This includes allocating funds for savings, such as emergency funds, retirement contributions, or a home down payment. Incorporating debt repayment into the budget is also important for financial health.