Colorado vs. Arizona
On a $75,000 salary, you keep about $1,449 more a year in Arizona. Prices are 2% higher in Colorado, so after adjusting for cost of living Arizona comes out ahead.
Last verified November 2, 2026.
| Colorado | Arizona | |
|---|---|---|
| State income tax | Has a flat income tax of 4.4% on taxable income. | Has a flat income tax of 2.5% on taxable income. |
| Minimum wage | $15.16 | $15.15 |
| Price level (U.S. = 100) | 103.1 | 100.7 |
| Employer cost on a $50,000 hire | $5,545 | $4,377 |
| SUTA wage base | $30,600 | $8,000 |
Take-home pay at the same salary
| Salary | Colorado take-home | Arizona take-home | Difference |
|---|---|---|---|
| $50,000 | $40,643 | $41,508 | $864 more in Arizona |
| $75,000 | $58,671 | $60,120 | $1,449 more in Arizona |
| $100,000 | $75,048 | $77,083 | $2,034 more in Arizona |
| $150,000 | $107,239 | $110,444 | $3,204 more in Arizona |
Single filer, standard deduction, tax year 2026. Excludes local income taxes.
Adjusted for cost of living
Using BEA regional price parities, $58,671 in Colorado buys what $56,933 buys in an average-priced state, and $60,120 in Arizona buys what $59,716 does. To keep the same buying power moving from Colorado to Arizona, a $75,000 salary would need to be about $73,272 before the tax difference.
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Frequently asked questions
- Is Colorado or Arizona better for take-home pay?
- On $75,000, you keep about $1,449 more a year in Arizona. Adjusted for prices, Arizona comes out ahead by $2,782.
- Which state is cheaper for employers, Colorado or Arizona?
- Employer taxes and insurance on a $50,000 hire are about $5,545 in Colorado and $4,377 in Arizona.