What Salary Do You Need to Live Comfortably in Denver?

Living comfortably in a major metropolitan area like Denver involves more than simply covering basic needs; it encompasses the ability to manage essential expenses, enjoy discretionary activities, and build financial security through savings. Understanding the financial landscape of the city is an important first step for anyone considering making Denver their home or for current residents assessing their financial well-being. This article aims to provide insight into the salary required to achieve a comfortable lifestyle in Denver, considering various cost components and personal factors.

Components of Denver Living Costs

Housing represents a significant portion of the cost of living in Denver, reflecting the city’s robust real estate market. For renters, the average monthly cost varies. Recent data indicates averages of $1,446 for studios, $1,668 for one-bedrooms, and $2,175 for two-bedrooms. Single-family homes average around $3,000 per month.

For those looking to purchase a home, mortgage payments vary considerably based on home value and down payment. A 20% down payment on a home valued between $450,000 and $550,000 could result in monthly payments between $3,200 and $4,000. For higher-priced homes in the $600,000-$700,000 range, monthly payments are between $4,200 and $5,100. The average monthly mortgage payment in Denver was around $2,839 in late 2024.

Property taxes also contribute to housing costs for homeowners. Denver County has a median effective property tax rate of 0.69% of a home’s assessed value, which is higher than the Colorado state median of 0.49%. The median annual property tax bill in Denver is around $2,906. Property taxes are calculated on an assessed value, estimated at about 6.25% of market value in Colorado.

Transportation expenses in Denver involve car ownership and public transit. The average annual cost for full-coverage car insurance in Denver is approximately $2,173 per year, or $181 per month. Gasoline prices average $2.96 per gallon. For public transportation, the Regional Transportation District (RTD) offers a standard monthly pass for $88, a day pass for $5.50, and a 3-hour pass for $2.75.

Food costs are an essential component of daily living. On average, an individual in Colorado spends about $316-$410 per month on groceries. A family of four might spend $1,366-$1,641 monthly. Dining out adds to these expenses, with casual meals costing around $15 and mid-range restaurant experiences closer to $50.

Utility costs in Denver average $331-$370 per month, covering water, electricity, gas, and internet services. Winter heating bills for electricity and gas can reach $300, while summer bills may drop to $150. Water bills range from $40-$50 per month, and internet services average between $50-$132 monthly.

Healthcare expenses contribute to the overall cost of living. For individuals, average health insurance premiums through the marketplace are about $451 per month, though unsubsidized plans can range from $380-$405. Employer-sponsored health insurance averages around $150 per month.

Taxes further impact disposable income. Colorado has a flat individual income tax rate of 4.25%. The state sales tax is 2.9%, with the average combined state and local rate in Colorado being 7.81%. Denver also levies a local occupational privilege tax of $5.75 per month for employees earning at least $500 monthly.

Factors Influencing Your Comfort Salary

Household size significantly affects the salary needed for comfortable living. A single individual has different financial requirements than a couple or a family with children. Larger households necessitate more bedrooms, increasing housing costs. Food budgets and healthcare coverage needs also expand significantly with each additional person.

Lifestyle choices also play a significant role in determining a “comfortable” salary. Preferences for entertainment, like frequent dining out or hobbies, directly influence discretionary spending. An individual prioritizing frequent travel or luxury goods will require a higher income than someone with more frugal habits. These subjective choices shape one’s perceived financial comfort.

Neighborhood selection within Denver can lead to variations in living expenses. Areas closer to downtown or in desirable districts often command higher housing costs. Choosing a neighborhood further from the city center might offer more affordable housing, but could increase transportation costs due to longer commutes. Access to amenities and school districts also influence neighborhood desirability and housing prices.

Estimating Your Required Salary

To estimate the salary needed for comfortable living in Denver, itemize and total all monthly expenses. Begin by summing projected housing costs, including rent or mortgage payments, property taxes if applicable, and any associated homeowner’s association fees. Next, calculate transportation expenses, including car payments, insurance, fuel, maintenance, or public transit passes. Include estimated monthly food costs, covering both groceries and dining out.

Factor in utility costs, such as electricity, gas, water, internet, and trash services. Include healthcare expenses, which can include insurance premiums, deductibles, and out-of-pocket medical costs. Account for taxes by estimating state income tax obligations and local sales tax on purchases. Once these expenses are totaled, incorporate a realistic budget for discretionary spending, allowing for entertainment, hobbies, and personal indulgences.

Allocate a portion of your budget for savings, whether for emergencies, retirement, or future goals like a home down payment. This savings component is important for long-term financial comfort and security. After compiling all monthly expenses and savings goals, multiply this total by twelve to arrive at your estimated annual gross salary requirement. Online cost of living calculators or personal budgeting applications can provide assistance in this estimation process, offering tools to track income and expenditures.