An important aspect of augmented reality (AR) is that digital information, such as rendered images of AR scenes and objects, are integrated with the user's view of the real world in real time. However, transmitting large images over the network may negatively impact the real time aspect of the AR experience. Methods and systems for dynamic image compression based on perceived viewing distance are described herein. In some implementations, image compression of streaming AR content is based on real world distances of AR objects relative to a user or client device. In some implementations, image compression of streaming AR content is based on relative depth information. In some implementations, image compression of streaming AR content is based on a type of information or content associated with an AR object. The dynamic image compression based on perceived viewing distance provided by the systems and methods disclosed herein may also be applied to video codecs.