What Is the Average Income in Colorado?

Understanding income levels within a specific state like Colorado offers valuable insights for various financial decisions and economic comprehension. This information can be particularly useful for individuals considering relocation, evaluating career opportunities, or engaging in personal financial planning. It also contributes to a broader understanding of economic trends and the well-being of the state’s residents.

Understanding Income Metrics

To interpret financial data, it is important to differentiate between various income metrics. Median income represents the midpoint of all incomes, meaning half of the households or individuals earn more, and half earn less. This measure is often considered more representative of typical income than the mean, as it is less affected by extremely high or low earners.

Mean, or average, income is calculated by dividing the total income by the number of households or individuals. While providing an overall sum, this metric can be skewed significantly by a small number of very high earners, potentially presenting an inflated view of general prosperity. Household income refers to the combined gross income of all individuals aged 15 and older living in the same housing unit. This includes wages, salaries, pensions, investments, and public assistance.

Per capita income, on the other hand, is the total personal income of an area divided by its total population, including those who do not earn income, such as children. This metric provides a broader measure of economic output per person. Understanding these distinctions is crucial for a nuanced interpretation of income statistics.

Current Income Data in Colorado

Colorado’s income statistics reflect a robust economic environment relative to national averages. According to recent data from USAFacts, based on the U.S. Census Bureau’s 2023 American Community Survey, Colorado’s median household income was $92,470. This figure indicates that half of the households in the state earned more than this amount, while the other half earned less. The median household income in Colorado was approximately 19.5% higher than the U.S. national median in 2023.

The average household income for Colorado in 2024 was reported as $124,231, which stands about 12% higher than the U.S. average. The average income per person in Colorado was $50,489.

Key Factors Affecting Income Levels

Income levels within Colorado are influenced by a combination of geographic, industrial, and demographic factors. Significant variations exist between the state’s urban centers and its rural areas. Major metropolitan areas like Denver and Boulder, with concentrations of high-tech and specialized industries, generally exhibit higher income levels compared to agricultural or more remote regions.

The state’s diverse economy plays a significant role, with prominent sectors contributing to varying wage potentials. Industries such as aerospace, technology, bioscience, and financial services, particularly along the Front Range, offer higher-paying jobs. Conversely, sectors like agriculture and tourism may offer a different range of earning opportunities.

Education levels also directly correlate with earning potential in Colorado. Individuals with higher educational attainment, such as bachelor’s or advanced degrees, typically command higher salaries than those with a high school diploma. This trend underscores the importance of educational investment. Age demographics further contribute to income variations, as experienced professionals often earn more than entry-level workers.

Official Data Sources

Reliable income data for the United States, including Colorado, primarily originates from several authoritative federal agencies. The U.S. Census Bureau is a fundamental source, particularly through its American Community Survey (ACS) and the Current Population Survey (CPS). These surveys collect comprehensive data on household income, poverty, and other demographic characteristics, providing annual estimates.

Another significant contributor is the Bureau of Economic Analysis (BEA), which produces national, state, and local personal income statistics. The BEA’s data offers insights into the components of income, such as wages, salaries, and government benefits. The Bureau of Labor Statistics (BLS) also provides information on employment, wages, and earnings across various occupations and industries.

State-specific agencies, such as the Colorado Department of Labor and Employment (CDLE), further supplement these federal sources by compiling detailed labor market information specific to Colorado. These agencies often provide localized data on employment trends, occupational wages, and workforce demographics. These government entities are reliable due to their rigorous data collection and statistical standards.