Colorado vs Texas: which really costs more?
Two fast-growing states people move to. One has a flat income tax; the other has none.
Most of the gap here is income tax. Sales tax lands in much the same place in both, so what you keep from your pay is the part that really moves. The purchase they disagree about most is car purchase. After that it is home purchase and then wedding. Everything below is sorted the same way, biggest gap first, so the things that barely differ sink to the bottom where they belong.
Two fast-growing destination states, one with a flat income tax and one with none.
The dominant term is the income tax differential; the combined sales tax rates are within a rounding band of each other, so take-home rather than consumption drives the spread below. Largest absolute divergence by category: car purchase. Then home purchase, then wedding.
Colorado
- Income tax rate
- 4.4%
- On a $75,000 salary
- 3.46%
- Rank of 51
- 28
- Combined sales tax
- 7.89%
- Rank of 51
- 16
Texas
- Income tax rate
- none
- On a $75,000 salary
- 0%
- Rank of 51
- 43
- Combined sales tax
- 8.25%
- Rank of 51
- 13
Beyond income and sales tax
Texas charges more than twice the property tax. A home there costs 1.49% of its value a year, against 0.48% in Colorado. Neither state taxes what you leave behind when you die. Gas carries a similar state tax in both: 22¢ a gallon in Colorado, 20¢ in Texas.
Effective property tax rate: about 1.49% of market value in Texas against about 0.48% in Colorado, more than a two-to-one ratio — a holding cost the income and sales tax figures above do not capture. Neither levies an estate tax. State gasoline excise: 22¢ per gallon in Colorado, 20¢ in Texas.
The income tax figure is what one person earning $75,000.00 pays to the state, as a share of that pay. The sales tax figure is the combined state and local rate. Both come from the same checked data the calculator uses.
Income tax is the effective state rate at $75,000 for a single filer, not a marginal rate. Sales tax is the combined state and local rate at each state's representative county where one is modeled, and a statewide average for the forty-five jurisdictions that carry no named county. Both figures come from the same verified datasets the calculator uses.
Colorado against Texas
A $75,000 salary
| Measure | Colorado | Texas |
|---|---|---|
| Take-home pay | $59,001 | $61,593 |
| Worth after local prices | $58,197 | $63,383 |
| Share of pay taxed | 21.33% | 17.88% |
| State sales tax | 2.9% | 6.25% |
| Groceries exempt here | Yes | Yes |
| Clothing exempt at $100 | No | No |
| Property tax rate | 0.48% | 1.49% |
| Price level | 101.4 | 97.2 |
| Housing prices | 130.5 | 97.4 |
| Fuel tax | 22¢ | 20¢ |
| Tobacco tax | $2.24 | $1.41 |
City income tax excluded. Sales-tax row: state-only. Exemptions: Colorado, Statewide average; Texas, Harris County (Houston). Clothing: one $100 item; higher prices can change tax.
Where each state is strong
A $75,000 salary
Further out is better on every axis. Axes use fixed national ranges, not the two states alone.
Where each state takes it
A $75,000 salary
- Income
- Sales
- Property
| Tax | Colorado | Texas |
|---|---|---|
| Income, all levels | $15,999 | $13,408 |
| Sales, on that spending | $513 | $1,155 |
| Property, on that home | $965 | $2,982 |
Assumes 30% of take-home spent on taxable goods and a $200,000 home. Three bases, so never summed.
What gets taxed, in each
A $75,000 salary
Colorado
Statewide average
Texas
Harris County (Houston)
- Sales tax
- Fuel
- Tobacco
| Category | Colorado | Texas |
|---|---|---|
| Groceries | Exempt | Exempt |
| Clothing at $100 | 7.89% | 8.25% |
| Fuel | 22¢ | 20¢ |
| Tobacco | $2.24 | $1.41 |
Grocery and general rates use the locations named here. Clothing is one item priced at $100; a more expensive garment may be taxed differently. Fuel and tobacco have separate units and scales.
What you would need there
A $75,000 salary
| To match take-home only | $71,316 |
|---|---|
| You could take a cut of | −$7,164 |
| Prices in Texas | 97 vs 101 |
State taxes and state price levels only. No city tax, and no housing market.
What things actually cost in each
These are the amounts you would need to earn before tax to pay for each thing, at a $75,000.00 salary. Biggest gaps first.
Gross income required at $75,000, using each category's default assumptions, sorted by the absolute difference between the two states.
| Category | Colorado | Texas | Difference |
|---|---|---|---|
| Car purchase | $141,519 | $132,099 | $9,420 cheaper in Texas |
| Home purchase | $1,182,536 | $1,185,852 | $3,317 cheaper in Colorado |
| Wedding | $49,149 | $46,162 | $2,987 cheaper in Texas |
| Coffee habit | $26,903 | $25,305 | $1,598 cheaper in Texas |
| Used car from a private seller | $19,631 | $18,465 | $1,166 cheaper in Texas |
| Car payment or lease | $17,632 | $16,529 | $1,103 cheaper in Texas |
| Funeral | $12,130 | $11,372 | $759 cheaper in Texas |
| Phone plan | $10,448 | $9,794 | $653 cheaper in Texas |
| Jewelry | $5,726 | $5,386 | $340 cheaper in Texas |
| Rent | $2,729 | $2,559 | $171 cheaper in Texas |
| Pet annual cost | $2,532 | $2,382 | $150 cheaper in Texas |
| Furniture | $2,454 | $2,308 | $146 cheaper in Texas |
| Laptop or phone purchase | $1,963 | $1,846 | $117 cheaper in Texas |
| Major appliance | $1,800 | $1,693 | $107 cheaper in Texas |
| Childcare | $1,668 | $1,564 | $104 cheaper in Texas |
| Sofa bed | $1,636 | $1,539 | $97 cheaper in Texas |
| Mattress | $1,472 | $1,385 | $87 cheaper in Texas |
| Winter tires | $1,472 | $1,385 | $87 cheaper in Texas |
| Tires | $1,309 | $1,231 | $78 cheaper in Texas |
| Bicycle | $1,145 | $1,077 | $68 cheaper in Texas |
| Espresso machine | $1,145 | $1,077 | $68 cheaper in Texas |
| Hotel stay | $1,061 | $994 | $66 cheaper in Texas |
| Office chair | $982 | $923 | $58 cheaper in Texas |
| Theme park day | $831 | $781 | $50 cheaper in Texas |
| Air conditioner | $818 | $769 | $49 cheaper in Texas |
| Back-to-school clothes | $818 | $769 | $49 cheaper in Texas |
| Games console | $818 | $769 | $49 cheaper in Texas |
| Lawn mower | $736 | $692 | $44 cheaper in Texas |
| Health insurance premium | $682 | $640 | $43 cheaper in Texas |
| Camping gear | $695 | $654 | $41 cheaper in Texas |
| Power tools | $654 | $615 | $39 cheaper in Texas |
| Suit | $654 | $615 | $39 cheaper in Texas |
| Gift card | $607 | $569 | $38 cheaper in Texas |
| Student loan payment | $607 | $569 | $38 cheaper in Texas |
| School uniform | $589 | $554 | $35 cheaper in Texas |
| Vet visit | $546 | $512 | $34 cheaper in Texas |
| Vacuum cleaner | $573 | $539 | $34 cheaper in Texas |
| Rental car | $438 | $407 | $32 cheaper in Texas |
| Domestic flight | $497 | $466 | $31 cheaper in Texas |
| Cookware | $491 | $462 | $29 cheaper in Texas |
| Running shoes | $425 | $400 | $25 cheaper in Texas |
| Luggage | $409 | $385 | $24 cheaper in Texas |
| Meal kit | $364 | $341 | $23 cheaper in Texas |
| Work uniform | $360 | $339 | $21 cheaper in Texas |
| Utilities | $318 | $299 | $20 cheaper in Texas |
| Winter coat | $327 | $308 | $19 cheaper in Texas |
| School supplies | $294 | $277 | $18 cheaper in Texas |
| Weekly groceries | $265 | $249 | $17 cheaper in Texas |
| Car insurance | $250 | $235 | $16 cheaper in Texas |
| Grocery delivery | $215 | $202 | $13 cheaper in Texas |
| Concert ticket | $224 | $210 | $13 cheaper in Texas |
| Storage unit | $197 | $185 | $12 cheaper in Texas |
| Clothing | $196 | $185 | $12 cheaper in Texas |
| Birthday cake | $182 | $171 | $11 cheaper in Texas |
| Restaurant dinner | $157 | $148 | $9.33 cheaper in Texas |
| Costume | $147 | $139 | $8.73 cheaper in Texas |
| Swimwear | $139 | $131 | $8.27 cheaper in Texas |
| Cannabis (legal states) | $107 | $101 | $6.72 cheaper in Texas |
| Internet service | $106 | $100 | $6.64 cheaper in Texas |
| Pet food | $98 | $92 | $5.82 cheaper in Texas |
| Baby clothes | $90 | $85 | $5.33 cheaper in Texas |
| Sunscreen | $90 | $85 | $5.33 cheaper in Texas |
| First aid supplies | $74 | $69 | $4.38 cheaper in Texas |
| Gym membership | $74 | $69 | $4.38 cheaper in Texas |
| Streaming bundle | $74 | $69 | $4.38 cheaper in Texas |
| Baby formula | $68 | $64 | $4.26 cheaper in Texas |
| Gas fill-up | $68 | $64 | $4.26 cheaper in Texas |
| Haircut | $64 | $60 | $3.98 cheaper in Texas |
| Toiletries | $65 | $62 | $3.90 cheaper in Texas |
| Pizza delivery | $61 | $57 | $3.67 cheaper in Texas |
| Food delivery | $58 | $55 | $3.51 cheaper in Texas |
| Vitamins and supplements | $57 | $54 | $3.40 cheaper in Texas |
| Deli sandwich | $54 | $51 | $3.21 cheaper in Texas |
| Books | $49 | $46 | $2.91 cheaper in Texas |
| Cinema ticket | $49 | $46 | $2.88 cheaper in Texas |
| Prescription refill | $45 | $43 | $2.85 cheaper in Texas |
| Soft drinks | $39 | $37 | $2.33 cheaper in Texas |
| Coffee beans | $36 | $34 | $2.30 cheaper in Texas |
| Frozen meals | $33 | $31 | $2.09 cheaper in Texas |
| Rideshare trip | $33 | $31 | $2.09 cheaper in Texas |
| Over-the-counter medicine | $25 | $23 | $1.46 cheaper in Texas |
| Energy drinks | $23 | $22 | $1.35 cheaper in Texas |
| Bread and bakery | $21 | $20 | $1.33 cheaper in Texas |
| Candy | $20 | $18 | $1.17 cheaper in Texas |
| Fast food meal | $20 | $18 | $1.17 cheaper in Texas |
| Snack food | $18 | $17 | $1.13 cheaper in Texas |
| Bar drink | $18 | $17 | $1.07 cheaper in Texas |
| Bottled water | $15 | $14 | $0.95 cheaper in Texas |
| Dry cleaning | $61 | $62 | $0.90 cheaper in Colorado |
| Cigarettes or vape | $15 | $14 | $0.88 cheaper in Texas |
| Bottled juice | $14 | $13 | $0.86 cheaper in Texas |
Across the 91 things we can price in both states, Texas comes out cheaper more often. That is not the whole story. Housing, wages and property tax move far more than sales tax does, and none of them are in these numbers. See limitations.
Across the 91 categories computable in both states, Texas is cheaper more often. ⚠️ This compares tax treatment alone: housing costs, prevailing wages and property tax vary far more between states than sales tax does, and none of them enter these figures. See limitations.
Questions people ask
One of these has no income tax — is it simply the cheaper one?
No — the money moves rather than disappears. The sales rates differ by about 0.36% between these two, and property tax adds a third dimension the headline comparison ignores.
Which of these is actually cheaper?
The taxes point opposite ways. Whichever state wins on income loses on sales — a about 0.36% gap — so the answer changes with how much of your income you spend.
How much would moving between these two actually change?
Materially, on at least one tax. That makes this a pair where running your own numbers changes the answer rather than confirming it.
Does the absence of an income tax make this the lower-burden state?
One state levies no personal income tax on wages and the other does. Revenue substitution means the comparison is only meaningful across all three bases: the combined sales rate differs by about 0.36%, and property tax is levied independently. ⚠️ Relative burden depends on a household's income, consumption and property mix, and reverses across that range for many pairs.
Why do the two levies rank these states differently?
The income and consumption levies rank these states in opposite directions, with a about 0.36% sales differential offsetting the income differential. Relative burden is therefore a function of the household's consumption share of income; no ordering holds across the full range, and single-figure comparisons implicitly assume one.
How material is this differential?
At least one levy differs materially between these states. Aggregate effect is income- and consumption-dependent and should be computed for the specific household rather than inferred from headline rates; the ordering can still reverse once property tax is included.