Cost of Living

Anchorage vs Denver Cost of Living

Denver is approximately 10.0% cheaper than Anchorage. See salary equivalence, taxes, and side-by-side breakdown.

Anchorage, AK

1.20×
cost-of-living index (1.00 = US average)
State
Alaska
State income tax
None
City local income tax
None
Housing index (est.)
Typically 1.5–2× higher than overall index
1.06×
Food/groceries index
0.95×
Transport index
0.98×

Denver, CO

1.08×
lower cost than Anchorage
State
Colorado
State income tax
~5% effective
City local income tax
None
Housing index (est.)
0.84×
Food/groceries index
0.89×
Transport index
0.93×
Salary equivalence — to maintain the same lifestyle moving from Anchorage to Denver
Salary in AnchorageEquivalent in DenverDifference
$50,000$45,000-$5,000 (-10.0%)
$75,000$67,500-$7,500 (-10.0%)
$100,000$90,000-$10,000 (-10.0%)
$150,000$135,000-$15,000 (-10.0%)
$200,000$180,000-$20,000 (-10.0%)
Moving to Denver? Your Anchorage salary stretches further — you can lifestyle up or save the difference.

Anchorage vs Denver: which is more affordable?

On an overall cost-of-living basis, Denver is 10.0% cheaper than Anchorage. That means if you currently spend $5,000/month in Anchorage, you'd spend approximately $4,500 for the same lifestyle in Denver. Or: $100,000 in Anchorage$90,000 in Denver for equivalent purchasing power.

These multipliers are based on Bureau of Economic Analysis Regional Price Parities and reflect average housing, food, transportation, and services costs. Real personal costs vary by neighborhood (urban core vs suburb), housing choice (rent vs own, apartment vs house), and lifestyle (frequency of dining out, car-dependent vs transit, etc.).

Tax differences

Alaska has no state income tax, but Colorado does (typical effective rate ~5% at middle incomes). Moving from Anchorage to Denvermeans losing the no-tax benefit. On a $100K salary, that's roughly $5,000/year more in taxes.

What costs more (and less) in Denver

Cost of living differences are driven mostly by housing — typically the biggest expense category. Denver's housing index (0.84×) compared to Anchorage's (1.06×) is the dominant factor.

Food, groceries, and transportation typically vary 5–15% between metros — much less than housing. For a couple moving from Anchorage to Denver, expect roughly:

  • Rent / mortgage: -20% lower
  • Groceries: -6% lower
  • Transportation: -5% lower
  • Healthcare, services: roughly proportional to overall index

Things this calculator can't fully capture

  • Quality-of-life: weather, walkability, school quality, crime rates, commute times — not in the index.
  • Career opportunities: a metro with higher cost-of-living often pays correspondingly higher salaries for the same role. See our salary calculator by job and city.
  • Family situation: childcare, school district, eldercare costs vary independently of overall index.
  • Lifestyle preferences: a frugal renter pays less than the index suggests; a property owner in a hot market might pay much more.

Related tools

Anchorage Paycheck Calculator — exact take-home in Anchorage. Denver Paycheck Calculator — exact take-home in Denver. Salary Calculator — hourly ↔ annual conversion. Inflation Calculator — purchasing power over time. Mortgage Calculator — what you can afford.

Frequently Asked Questions

Is Denver more expensive than Anchorage?
Denver is approximately 10.0% cheaper than Anchorage on an overall cost-of-living basis. Denver's multiplier is 1.08× US national vs Anchorage's 1.20×.
If I make $100,000 in Anchorage, what salary do I need in Denver to live equivalently?
Roughly $90,000. The ratio of 0.90× means $100K in Anchorage corresponds to about $90,000 in Denver for an equivalent standard of living. Real differences depend on housing, transport, and lifestyle choices.
What about state taxes between Alaska and Colorado?
Alaska: no state income tax. Colorado: graduated state income tax (typical effective rate ~5%). This is a significant factor in net take-home difference.
Does Denver have a city income tax?
Denver has no separate city income tax. Just federal + Colorado state.
How accurate are these comparisons?
Population-level estimates based on cost-of-living indexes. Actual costs depend on neighborhood (urban core vs suburb), lifestyle (renting vs owning, transport choice, dining out), and family size. For precise budgeting, use BestPlaces, Numbeo, or local rent data alongside these estimates.