Is $40,000 a good salary in Colorado?

$40,000 in Colorado provides a monthly take-home of approximately $2,707 after taxes. Across major Colorado cities, this salary is rated very tight, with an average monthly surplus of $-172.

What is the cost of living on $40,000 in Colorado?

The average monthly living cost across major Colorado cities is approximately $2,879 for a single adult (rent, food, transport, utilities, healthcare). On $40,000 take-home pay of $2,707/month, you would have roughly $-172/month remaining.

Living in Colorado · 2026

Is $40,000 enough to live in Colorado?

Single adult · CO · 2026 tax brackets · Real cost-of-living data

Statewide verdict:Very tight

Monthly take-home

$2,707

Avg monthly expenses

$2,879

Avg monthly surplus

$-172

Savings potential

~0%

After-tax take-home in Colorado

Gross salary$40,000

Federal income tax− $2,694

State income tax− $1,760

Social Security− $2,480

Medicare− $580

Annual take-home$32,486

Effective tax rate18.79%

How $40,000 feels in Colorado cities

Rent: HUD FMR 2026 · Food: USDA Low-Cost Plan × COL · Transport/Utilities/Healthcare: BLS CES × COL

Denver

COL index: 1.39× national avg

Very tight

Rent (1BR)

$1,900

Food

$528

Transport

$243

Utilities

$229

Healthcare

$278

Total: $3,178/mo

Surplus: $-471/mo

Rent burden: 70.2% — Unaffordable (> 50%)

Full Denver analysis →

Colorado Springs

COL index: 1.14× national avg

Manageable

Rent (1BR)

$1,400

Food

$449

Transport

$199

Utilities

$188

Healthcare

$228

Total: $2,464/mo

Surplus: $243/mo

Rent burden: 51.7% — Unaffordable (> 50%)

Full Colorado Springs analysis →

Aurora

COL index: 1.08× national avg

Manageable

Rent (1BR)

$1,400

Food

$493

Transport

$189

Utilities

$178

Healthcare

$216

Total: $2,476/mo

Surplus: $231/mo

Rent burden: 51.7% — Unaffordable (> 50%)

Full Aurora analysis →

Fort Collins

COL index: 1.18× national avg

Very tight

Rent (1BR)

$1,600

Food

$475

Transport

$207

Utilities

$195

Healthcare

$236

Total: $2,713/mo

Surplus: $-6/mo

Rent burden: 59.1% — Unaffordable (> 50%)

Full Fort Collins analysis →

Lakewood

COL index: 1.28× national avg

Very tight

Rent (1BR)

$1,800

Food

$506

Transport

$224

Utilities

$211

Healthcare

$256

Total: $2,997/mo

Surplus: $-290/mo

Rent burden: 66.5% — Unaffordable (> 50%)

Full Lakewood analysis →

Boulder

COL index: 1.43× national avg

Not recommended

Rent (1BR)

$2,100

Food

$572

Transport

$250

Utilities

$236

Healthcare

$286

Total: $3,444/mo

Surplus: $-737/mo

Rent burden: 77.6% — Unaffordable (> 50%)

Full Boulder analysis →

50 / 30 / 20 Budget Planner

Based on your monthly take-home of $2,707 ($32,484/yr)

Needs 50%Wants 30%Savings 20%

Needs50%

$1,354

per month

›Rent / mortgage
›Groceries
›Utilities
›Insurance
›Minimum debt payments
›Transportation

Wants30%

$812

per month

›Dining out
›Streaming services
›Gym
›Hobbies
›Travel
›Shopping

Savings20%

$541

per month

›Emergency fund
›401(k) / IRA
›Investments
›Down payment fund
›Debt payoff (extra)

Needs / year

$16,242

Wants / year

$9,745

Savings / year

$6,497

Salary Intelligence

Financial pressure in Denver

Rent alone would take 70% of take-home income. This salary creates significant financial pressure in this city — a $76,000 annual income or lower rent is needed to reach affordability.

Lifestyle score: 1.2/10 (Difficult)

Lifestyle Assessment

A $40,000 salary does not fully cover typical living expenses for a single adult in Denver, Colorado. Monthly costs exceed take-home pay by $471, indicating this income is insufficient for an independent lifestyle here without additional income or reduced spending.

Purchasing Power

Denver's above-average cost of living (index: 1.39) means $40,000 provides the purchasing power of roughly $28,777 in an average-cost US city, or $33,957 in Austin. Moving to a lower-cost state could effectively increase your take-home by thousands.

State & National Benchmark

$40,000 is 21% below the Colorado individual median of $50,700. Consider negotiating a higher salary or exploring higher-paying roles in this state.

State individual median

$50,700

-21%

State household median

$87,598

-54%

Tax reduction strategies

Maximize 401(k) Contributions — Up to $5,170 in federal tax (22% bracket)

Contribute to a Traditional IRA — Up to $1,540 in federal tax (22% bracket)

$40,000 vs. Colorado income benchmarks

Individual median (Colorado)

$50,700

-21% vs. this salary

Household median (Colorado)

$87,598

-54% vs. this salary

Source: US Census Bureau ACS 2023

Related salary insights

Explore other salary levels in Colorado

$40,000 $60,000 $100,000 $150,000 $200,000 $300,000

Reviewed by

Finance Editor

CPA, 10+ years in personal finance

Data Sources

•Tax calculations: IRS federal tax tables
•Rent data: HUD Fair Market Rents
•Cost-of-living index: C2ER / ACCRA Cost of Living Index

Data updated monthly using government datasets.