Is Phoenix, AZ or Denver, CO cheaper on a $120,000 salary?

Phoenix, AZ leaves you more: $8,523/yr. On $120,000, Phoenix, AZ leaves $65,002/yr in pocket (state tax $3,000, housing $22,418) vs Denver, CO's $56,479 (state tax $5,280, housing $28,661).

The gap is driven mostly by state income tax (Arizona: 2.50% vs Colorado: 4.40%) and housing.

WhereCanIAfford › Take-home › Phoenix, AZ vs Denver, CO

Phoenix, AZ vs Denver, CO: cost of living on $120,000

Phoenix, AZ +$8,523/yr On $120,000, Phoenix, AZ leaves $65,002/yr in pocket vs Denver, CO's $56,479 — after state income tax and housing.

Where the money goes

On $120,000	Phoenix, AZ	Denver, CO
Federal + FICA (est.)	$29,580	$29,580
State income tax	$3,000 (2.50%)	$5,280 (4.40%)
After-tax income	$87,420	$85,140
− Housing/yr (Zillow)	$22,418	$28,661
Real money in pocket	$65,002	$56,479

Verified 2026-06-23 · State tax: Tax Foundation, “State Individual Income Tax Rates and Brackets, 2025” + state revenue departments. Modeled as an effective planning rate for a typical $80k–$160k filer — not a full bracket engine. · Housing from Zillow ZHVI 2026-05.

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FAQ

Is Phoenix, AZ or Denver, CO cheaper?: On $120,000, Phoenix, AZ — by $8,523/yr in real take-home.
What's the biggest driver?: State income tax (Arizona 2.50% vs Colorado 4.40%) and housing cost.

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