Arizona vs Colorado: Tax & Cost of Living Comparison

A comprehensive side-by-side comparison of taxes, cost of living, housing, income, and insurance costs between Arizona and Colorado.

State 1

Arizona

AZ

State 2

Colorado

CO

CategoryArizonaColorado
Income Tax Rate2.50%Better4.40%
Property Tax Rate0.62%0.49%Better
Property Tax (on Median Home)$2,449/yrBetter$2,573/yr
Sales Tax Rate5.60%2.90%Better
Cost of Living Index103Better105
Median Home Price$395,000Better$525,000
Median Household Income$68,000$82,250Better
Avg. Auto Insurance$1,860/yrBetter$2,100/yr
Avg. Home Insurance$1,950/yrBetter$2,600/yr

Cost of Living Comparison

Index relative to national average (100)

Arizona103
Colorado105
National Average100

Median Home Price

Arizona

$395,000

Property Tax: $2,449/yr

Colorado

$525,000

Property Tax: $2,573/yr

Arizona homes are 24.8% cheaper than Colorado homes.

Median Household Income

Arizona

$68,000

Colorado

$82,250

Colorado households earn $14,250 more per year on average.

Insurance Costs

TypeArizonaColoradoDifference
Auto Insurance$1,860/yr$2,100/yr$240/yr
Home Insurance$1,950/yr$2,600/yr$650/yr
Total Insurance$3,810/yr$4,700/yr$890/yr

Overall Financial Comparison

Weighted score combining income tax, property tax, sales tax, cost of living, housing, insurance, and income. A lower score indicates better overall financial affordability.

Arizona

36.5

Colorado

33.5

More Affordable

The Bottom Line

Arizona offers lower income tax, lower cost of living, more affordable housing compared to Colorado. Meanwhile, Colorado offers lower property tax, lower sales tax, higher median income. Overall, Colorado edges ahead in our weighted financial comparison.

Arizona Advantages

  • +Lower income tax
  • +Lower cost of living
  • +More affordable housing

Colorado Advantages

  • +Lower property tax
  • +Lower sales tax
  • +Higher median income

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Compare With Other States