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: 716,000 city / 3,010,000 metro. 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 0% 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 | $72,800/year |
| Median individual earnings | $52,100/year |
| Cost of living index | 125 (US avg = 100) |
| Average 1-bedroom rent | $1,820/month |
| Average 2-bedroom rent | $2,360/month |
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 earning $110,000 pays ~$4,840 in state tax plus $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 top-10 US tech market. Major employers: Lockheed Martin Space Systems (HQ for Space Systems business unit, employing 8,500+ in Littleton), United Launch Alliance (HQ in nearby Centennial), Ball Aerospace, Northrop Grumman Space — collectively making Denver the 'Aerospace Capital of America.' Tech: thousands of remote workers from Bay Area companies (Google, Meta, Salesforce all maintain offices), plus local successes (Palantir HQ in Denver, 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 (2014) has created an entirely new industry employing 35,000+ in Colorado. Outdoor recreation industry is huge — VF Corp HQ moved to Denver in 2020, bringing The North Face, Vans, Timberland, Smartwool. Cultivated talent base from CU Boulder, Colorado School of Mines, and University of Denver. The metro added 90,000+ jobs in 2024 and continues to attract Bay Area transplants seeking tax savings + outdoor lifestyle.
Top employers & industries in Denver
Major employers
- UCHealth
- Lockheed Martin Space (HQ)
- Arrow Electronics (HQ)
- DaVita (HQ)
- United Airlines (hub operations)
Key industries
- Technology
- Aerospace & Defense
- Healthcare
- Energy (Oil & Gas)
Denver salary ranges by industry
Typical Denver-area total compensation by industry. Ranges reflect mid-career professionals (3–10 years experience). Senior, principal, and executive roles often exceed the upper bound; entry-level roles typically start near or below the lower bound.
| Industry / Role | Salary range | Examples |
|---|---|---|
| Aerospace Engineering (Lockheed Space, ULA) | $110,000 – $215,000 | Senior engineers, principal engineers |
| Software Engineering | $130,000 – $215,000 | Plus remote Bay Area pay scales for some |
| Healthcare (Specialists) | $285,000 – $625,000+ | UCHealth, National Jewish |
| Energy / Oil & Gas (declining) | $95,000 – $185,000 | — |
| Cannabis Industry (executive) | $95,000 – $315,000 | — |
| Outdoor / Apparel (VF Corp) | $85,000 – $215,000 | — |
Compensation includes base salary plus typical bonus and stock-based compensation where common. Use the calculator above for accurate take-home pay at your specific salary.
Denver housing market
Denver housing has appreciated significantly with the influx of Bay Area transplants and post-pandemic remote workers — median city home around $595,000 in 2026 (up from $370K in 2019). Cherry Creek, Wash Park, and LoHi (Lower Highlands) are popular gentrified neighborhoods at $700K-1.5M+. Highlands Ranch, Lone Tree, and Castle Rock are wealthy southern suburbs at $685-995K medians. Boulder (45 minutes northwest, technically separate metro) commands premium pricing — $895K median. Castle Pines, Greenwood Village, and Cherry Hills Village are luxury enclaves at $1.5-3M+. Property tax is among the lowest in the US (~0.55% effective rate) — a $595K home means about $3,300/year in property tax (vs $9,500 on the same home in Texas). New construction is heavy in suburbs along I-25 (north and south) and east toward DIA. Mountain weather is highly variable — 300+ sunny days/year but can snow heavily October-April.
Detailed cost of living in Denver
Current monthly costs and key prices in the Denver area to help estimate your real cost of living vs your take-home pay:
| Category | Cost | Note |
|---|---|---|
| Median home price (city) | $595,000 | |
| 1-bedroom rent (LoDo/Cherry Creek) | $2,250/month | |
| 1-bedroom rent (LoHi/Capitol Hill) | $1,820/month | |
| Suburb (Highlands Ranch) median | $685,000 | |
| Groceries (single person) | $405/month | |
| Gasoline | $3.45/gallon | |
| RTD pass (LiVE/MyRide) | $104/month | Includes A Line to DIA |
| Sales tax (Denver) | 8.81% |
Estimates as of 2026; actual costs vary by neighborhood, household size, and lifestyle.
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. Average commute is 28 minutes. 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 (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 8.81%. Property tax is exceptionally low (0.55% effective rate) — a major Colorado advantage. Colorado is one of the few states that taxes Social Security at modest amounts (with significant exemption). 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 $200K earner saves about $20,000/year in state income tax moving CO from CA. 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, Ball — 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' — 5,280 ft elevation 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 top-10 tech market. Software engineers average $115,000–$145,000. Data scientists and ML engineers earn $120,000–$155,000. Many Bay Area companies allow employees to relocate to Denver while maintaining California pay scales — a major financial advantage since you drop California's 13.3% tax for Colorado's 4.4%.