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OP, check out Santa Fe NM. Like Taos it has the culture you're after in a much larger town that's less remote. It's high altitude offers a nice summer climate as well.
The belt from Manitou / Colorado Springs to Albuquerque is really a solid fit, each area offers good options. There's more activity and options and amenities in the quality areas of COS, Santa Fe, and Albuquerque (and you want to be in the good spots cause sometimes the cheaper areas can be rough or bland), but housing is more expensive. So it's a trade off of nicer housing and serenity vs being in the action, and plenty of options in between.
I was born in Metro Detroit, but since I was 8 years old I’ve lived in and around Austin, TX, with the exception of college which was in Bronxville, NY. I am a 26, I work in tech and currently work from home, I’m a bisexual woman and I’m a witch/practitioner of Wicca/witchcraft/eclectic neo-paganism. I do really like Austin, though it is less “weird” every year, but I can’t really handle the heat, I don’t feel comfortable living in a state where the law limits what I can do with my body and I am just ready for a change. I don’t want to move to NOLA, the weather is even worse and it’s also in a red state, and as someone who has been Salem it’s not for me. Ideally I would like a city that’s reasonably affordable ($1500 or less for a studio or 1 bedroom) with a fun live music scene, lots of gay people and particularly sapphic women and a progressive culture. I am not opposed to a smaller town either as long as it has these things. Thanks so much
I wish you well in your search. A few observations of wherever you go.....
.......beware of places that are popular for those are places everyone will want to move to and they may be of ideas, may want to change the place that is not to your liking.
.......beware of places of inexpensive or free high speed unlimited Internet for it is places of limited or no Internet that keep people out, IMHO. It is in places that have such Internet, places that get such, that everyone moves in and the prices go UP! as people want to add the newest, best technology to their lives.
Finally, we each have our beliefs and that's okay. I am a Texas Marine Biologist and will stay in Texas despite the headaches of the State House. Because......as a woodlands witch, someone has to be here for the animals and nature.
I second Manitou Springs. It's gay friendly, and has a 'weird' vibe. I like it. LOL
And I think the weather would suit you. I've never been a fan of snow, but it's different in Colorado. Colorado is dry, so the snow is dry, and IMO, it's refreshing...doesn't get in your bones like it does in more humid climates.
Just looking on ApartmentFinder, it looks like there's plenty of places for under $1000 in nearby Colorado Springs.
Well, "California is the place you ought to be" (ironic use of Beverly Hillbillies theme song here!) but alas, the Land Of Fruits And Nuts is anything but affordable now.
Why not take a look at Providence, RI, Philadelphia, or Baltimore?
All are in super progressive, blue states, and rent can be had for your budget in each city. All 3 cities offer good LGBTQ+ bars, communities and resources.
Wouldn't label Pennsylvania as a ''super progressive, blue state''.
Take a look at Tacoma. More affordable than Seattle (usually). Has a variety of neighborhoods and diversity. Large punk, free thinking, witch community there. The visual contrast of industrial port, to near old growth forest, to snow capped 14,000+ foot volcano from sea level, to steep hillsides with 1800-early 1900's architecture, to beaches with marine life and vistas of Mediterranean peninsulas.. It's captivating. Many like minded individuals and small niche events/ pop ups seemingly on a daily basis. A gem for conscious folks.
If you'd prefer a smaller city that hasn't lost its "weirdness" you might want to look at Olympia, WA.
I don't identify as Pagan/Witch, but do follow some of their practices and there are definitely plenty of others like me here.
But that wasn't why I chose Olympia. I chose it because of its vibrant art community and proximity to everything else in the state as it's located almost in the middle of the state.
I moved here from Ventura county, CA six plus years ago and have no regrets.
The topographical beauty that surrounds the area is another plus.
Any left leaning town in the west (Cali, Oregon Washington, maybe even Colorado or New Mexico) should work.
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but alas, the Land Of Fruits And Nuts is anything but affordable now. 
