Quick answer
Tennessee has lower average 1BR rent ($1,238/mo vs $1,595/mo). State income tax: Tennessee (None) vs Colorado (4.4%) — on a $120K salary that's $5,280/year difference.
State Comparison · 2026
Colorado vs Tennessee
Side-by-side on state income tax, rent, home prices, climate, and top metros — with specific dollar numbers for every claim.
Last updated: April 23, 2026
Colorado vs Tennessee at a Glance
| Metric | Colorado | Tennessee |
|---|---|---|
| Avg 1BR rent (major metros) | $1,595 | $1,238 ✓ |
| Avg median home price | $515K | $304K ✓ |
| Cheapest city | Colorado Springs ($1,450) | Memphis ($980) ✓ |
| Priciest city | Denver ($1,740) | Nashville ($1,520) |
| State income tax | 4.4% | None ✓ |
| Avg walkability | 49/100 ✓ | 35/100 |
| Cities tracked | 2 | 4 |
✓ marks the lower or more favorable value. Averages use the major metros we track in each state.
State Income Tax: Real Savings
What the rate gap actually looks like in your paycheck. Lower rate: Tennessee (None).
Salary $80K
$3,520
/year saved in Tennessee
Salary $120K
$5,280
/year saved in Tennessee
Salary $200K
$8,800
/year saved in Tennessee
Calculation uses the effective state rate difference × gross salary. Doesn't include property tax, sales tax, or federal impact.
Deep Dive: Each State
Colorado (CO)
Tax reality
Colorado has a flat 4.4% state income tax — lower than California or New York but not zero. The TABOR amendment caps annual state revenue growth, which occasionally triggers tax refunds (a few hundred dollars per taxpayer) but also starves state services. Property tax is low (~0.5% effective).
Top cities (2 tracked)
Top drawbacks
- ✕Altitude takes 3-6 weeks to adjust to and permanently affects endurance sports performance vs sea level. Some people never fully adjust.
- ✕Winter driving the I-70 corridor to ski resorts is regularly miserable. Traction laws can close passes entirely, and Friday/Sunday traffic in season is 3-5 hour crawls for a 90-minute drive.
- ✕Water is structurally tight. Denver specifically has growing supply concerns as the population expands and Colorado River allocations contract. Homes with big lawns are increasingly a liability.
Tennessee (TN)
Tax reality
Tennessee has no state income tax on W-2 wages or investment income. Sales tax is 7% state + local, totaling 9.25-9.75% in most metros — one of the highest sales tax rates in the US. No estate tax. Property tax is low (~0.7% effective in Nashville, lower in rural areas).
Top cities (4 tracked)
Top drawbacks
- ✕Sales tax 9.25%+ is punishing. Every purchase stings — gas, groceries (yes, groceries are taxed here), and retail.
- ✕Nashville traffic has become very bad as the metro has grown. I-24 and I-65 corridor are regularly backed up; the state has underinvested in transit.
- ✕Summers are humid subtropical — regular 90°F + 75% humidity from June through September, and thunderstorm season can be intense.
Frequently Asked Questions
Is Colorado or Tennessee cheaper to live in?
Tennessee has lower average 1BR rent across major metros — $1,238/mo vs $1,595/mo in Colorado, a $357/mo difference. Home prices: Tennessee median is $304K vs $515K.
Colorado vs Tennessee: which has lower state income tax?
Tennessee has lower state income tax (None) vs 4.4% in Colorado. On an $80K salary that's $3,520/year in savings. On $200K, savings grow to $8,800/year.
Should I move from Colorado to Tennessee?
Colorado has a flat 4.4% state income tax — lower than California or New York but not zero. The TABOR amendment caps annual state revenue growth, which occasionally triggers tax refunds (a few hundred dollars per taxpayer) but also starves state services. Property tax is low (~0.5% effective).
What are the best cities in Colorado vs Tennessee?
Colorado's largest metros include Denver, Colorado Springs. Tennessee's largest metros include Nashville, Memphis, Chattanooga. Cost of living varies significantly within each state — a Colorado suburb can be 40% cheaper than its flagship city, and vice versa.