How Denver take-home pay works
Your Denver take-home pay is your gross salary minus federal income tax, Colorado state income tax, Denver city/county income tax, Social Security (6.2%), and Medicare (1.45%). The calculator subtracts each in order and divides by your pay frequency to show net pay per paycheck.
Take-home = Gross − Federal − Colorado State − Denver Local − FICA (7.65%)
Population: 740,613 city / 3,092,037 metro (Census estimates for July 2025). Denver is one of the largest US cities and has unique tax rules described below.
Denver local income tax
Denver charges the Occupational Privilege Tax (OPT), a flat $5.75/month from employees plus $4.00/month from employers, on anyone earning ≥$500/month in Denver. Withheld by employer. This is a tiny amount compared to a percentage tax, only ~$69/year.
Local tax form: Denver OPT
Colorado state income tax
Colorado uses a flat 4.4% state income tax rate.
For full Colorado state tax details, deductions, and exemptions, see the Colorado Paycheck Calculator.
Take-home pay at common Denver salaries
Estimated annual net pay for a single filer in Denver, including federal + state + city taxes and FICA. Use the calculator above for personalized figures.
| Gross | Annual Net | Bi-weekly | Effective Rate |
|---|---|---|---|
| Loading… | |||
Income vs cost of living in Denver
Understanding your paycheck in Denver means looking beyond the gross number, the cost of living here directly determines what your take-home pay actually buys.
| Median household income | $92,504/year |
| Median earnings, people with earnings | $63,345/year |
| Price level, metro area (BEA 2024) | 105.8 (U.S. = 100) |
| Median rent, 1 bedroom | $1,711/month |
| Median rent, 2 bedrooms | $2,088/month |
Income and rent: Census Bureau, American Community Survey 2024 1-year estimates for the city of Denver. Rent is median gross rent, rent plus utilities, across all renters, long-standing and rent-regulated leases included, so a new lease usually costs more. Price level: Bureau of Economic Analysis regional price parities for the Denver-Aurora-Centennial, CO metro area.
Tax highlight
Denver's city income tax is effectively zero, just $69/year (OPT flat fee). Colorado's 4.4% flat state tax is moderate. A Denver tech worker filing single on $110,000 pays about $4,616 a year in Colorado income tax and FAMLI paid-leave premium, plus the $69 city fee. Colorado increasingly attracts remote workers from high-tax states seeking mountain lifestyle with significantly lower income tax burden.
Denver local economy & job market
Denver has emerged as a major US tech market. Major employers: Lockheed Martin Space (a large campus in Littleton), United Launch Alliance (headquartered in the Denver area), BAE Systems (which bought Ball Aerospace), Northrop Grumman Space, collectively making the Denver area a major aerospace center. Tech: remote workers from Bay Area companies (Google, Meta, Salesforce all maintain offices), plus local successes (Twilio Denver office, Zillow, Trade Desk, SendGrid). Healthcare anchors UCHealth, HealthONE, and Kaiser Permanente. DaVita (HQ in Denver) is a major dialysis services company. Energy: still important but declining, historical oil/gas presence (Anadarko, now Occidental). Cannabis legalization has created an entirely new industry in Colorado. Outdoor recreation industry is huge, VF Corp moved its HQ to Denver, bringing The North Face, Vans, Timberland, Smartwool. Cultivated talent base from CU Boulder, Colorado School of Mines, and University of Denver. The metro continues to attract Bay Area transplants seeking tax savings + outdoor lifestyle.
Top employers & industries in Denver
Major employers
- UCHealth
- Lockheed Martin Space
- Arrow Electronics
- DaVita
- United Airlines (hub operations)
Key industries
- Technology
- Aerospace & Defense
- Healthcare
- Energy (Oil & Gas)
What jobs pay in the Denver area
Annual wages across the Denver-Aurora-Centennial, CO metro area from the Bureau of Labor Statistics (May 2025). Half of the workers in each job earn between the two figures in the middle column. Bonuses paid as wages are included; stock awards and self-employment are not.
| Occupation | Middle half earns | Median |
|---|---|---|
| All occupations | $45,460 – $99,420 | $62,320 |
| Registered Nurses | $85,390 – $109,760 | $101,130 |
| Software Developers | $123,640 – $171,350 | $137,610 |
| Accountants and Auditors | $78,130 – $130,870 | $100,020 |
| Elementary School Teachers, Except Special Education | $61,220 – $84,170 | $76,910 |
| Electricians | $48,920 – $79,620 | $63,150 |
| Heavy and Tractor-Trailer Truck Drivers | $58,310 – $72,810 | $63,900 |
| Retail Salespersons | $36,660 – $44,570 | $38,470 |
| Aerospace Engineers | $128,840 – $168,580 | $156,190 |
| Information Security Analysts | $107,650 – $170,920 | $136,670 |
Source: BLS Occupational Employment and Wage Statistics, May 2025, for the whole metro area. Use the calculator above for take-home pay at any of these salaries.
Denver housing market
Denver housing has appreciated significantly with the influx of Bay Area transplants and post-pandemic remote workers: FHFA's house price index for the metro area rose 44% from 2019 to 2026, and the median value of owner-occupied homes in the city is $636,400, as owners estimate it (Census Bureau, 2024). Cherry Creek, Wash Park, and LoHi (Lower Highlands) are popular gentrified neighborhoods, with homes well above the city median. Highlands Ranch, Lone Tree, and Castle Rock are wealthy southern suburbs. Boulder (northwest, technically a separate metro) commands premium pricing. Castle Pines, Greenwood Village, and Cherry Hills Village are luxury enclaves. Property tax is among the lowest of any large US city: the median property tax bill is $3,071, about 0.5% of the median home value (Census Bureau, 2024); at Texas's statewide ratio (1.3%), a home at Denver's median value would pay about $8,347 a year. New construction is heavy in suburbs along I-25 (north and south) and east toward DIA. Mountain weather is highly variable: often sunny, but it can snow heavily October-April.
Commute & transportation in Denver
Denver has RTD light rail, commuter rail (including the A Line to DIA), and buses. Many tech workers bike or use e-scooters downtown. The mean one-way commute was 25 minutes in 2024 (Census, workers who don't work from home). I-25 northbound from Douglas County and I-70 from the west see heavy rush-hour congestion. The city is expanding transit with new rail lines but suburban sprawl still makes driving the default for most residents.
Notable neighborhoods in Denver
Denver tax nuances you should know
Colorado's flat 4.4% income tax is moderate, well below California (top rate 13.3%) but above no-tax states. Denver's Occupational Privilege Tax (OPT) is essentially zero, $5.75/month flat fee = $69/year. Combined Denver sales tax is 9.15%. Property tax is exceptionally low, a major Colorado advantage: Denver's median property tax bill is $3,071, about 0.5% of the median home value (Census Bureau, 2024). Colorado does not tax Social Security benefits. Cannabis tax is unique: Colorado collects 15% excise tax + 15% special sales tax on retail marijuana, major state revenue source. Denver has a marijuana sales tax adding another 5.5%. For high-income tech workers relocating from California, the savings are substantial, a single filer earning $200,000 keeps about $7,983 more a year in Denver than in California. The combination of low property tax + moderate income tax + outdoor lifestyle has made Denver one of the top US destinations for the post-pandemic tech worker migration.
Denver paycheck & tax tips
- Maximize pre-tax deductions: 401(k) contributions (up to $24,500 in 2026), HSA ($4,400 single / $8,750 family), FSA ($3,400) and commuter benefits (up to $340/month) all reduce your taxable income before Colorado state and federal income tax is calculated.
- Check your W-4 withholding: After major life changes (marriage, a new dependent, second job), update your W-4 to avoid owing a large tax bill or over-withholding. Use our W-4 Calculator to find the right allowances.
- Pay frequency matters: Bi-weekly earners get 26 paychecks per year (2 months with 3 paychecks). Budget based on monthly income, not per-paycheck amount, to avoid surprises in 3-paycheck months.
- Confirm your employer withholds Denver local tax: Most employers handle this automatically, but contract and self-employed workers must make quarterly estimated payments directly to the city (Denver OPT).
- Track FICA limits: Social Security (6.2%) only applies to the first $184,500 of wages in 2026. Once you cross that threshold, your paycheck increases by roughly 6.2% for the rest of the year, plan ahead if you depend on that boost.
- Self-employed in Denver? You owe the full 15.3% self-employment tax (employee + employer FICA portions) instead of 7.65%. The calculator above shows employee-side FICA, self-employed workers should add the employer half when budgeting.
Who should move to Denver?
Denver is ideal for: aerospace engineers (Lockheed Space, ULA, BAE Systems, which bought Ball Aerospace; Denver is the unofficial 'Space Capital'); software engineers seeking Bay Area pay with Colorado tax rates; healthcare workers at UCHealth or HealthONE; cannabis industry professionals; outdoor enthusiasts who want Rockies access; remote workers from high-tax states seeking lower taxes + better lifestyle; families wanting top schools in Cherry Creek, Boulder Valley, or Douglas County school districts. Less ideal for: those uncomfortable with high altitude (Denver is the 'Mile High City', and the altitude can affect sleep, exercise tolerance for first weeks); those needing major-city scale (Denver is mid-sized); or anyone wanting a coastal lifestyle. Denver's combination of growing tech ecosystem + low property tax + outdoor culture has made it one of the most popular destinations for in-migration in the US.
Denver paycheck frequently asked questions
What is Denver's Occupational Privilege Tax and why is it so small?
The Denver OPT is a fixed fee, not a percentage, of $5.75/month for employees earning at least $500/month in Denver. Annually that's $69. It was designed as a revenue-sharing mechanism rather than a major income tax. Your only significant local tax burden is Colorado's 4.4% flat state rate.
What is the average tech salary in Denver?
Denver has become a major tech market. BLS figures for the Denver metro (May 2025) put the middle half of software developers at $123,640–$171,350, with a median of $137,610. Many Bay Area companies allow employees to relocate to Denver while maintaining California pay scales, a major financial advantage: a single filer earning $150,000 keeps about $5,034 more a year in Denver than in California.