Curious about the cost of living in Texas? Who wouldn’t be? From the bustling urban centers of Houston to the laid-back charm of smaller towns like Tuscola, many choose to call the Lone Star State their home.
So, whether you’re considering a move or revisiting personal finances, join us as we break down the numbers behind Texas living.
Key Takeaways
- Rental prices in Texas are generally lower than the national average, and while home values vary by city, overall housing costs remain competitive.
- Texans benefit from slightly lower utility bills and healthcare expenses than the national figures.
- With no state income tax and moderate sales taxes, Texas offers financial advantages despite higher costs in some urban centers, such as Austin and Plano.
Average Cost of Living in Texas
Texas is the second-largest state in the United States. Home to around 31 million people, the state comes with different price tags based on your location. So, when it comes to the average cost of living in Texas, it’s clear that affordability varies widely by category. Let’s compare Texas averages with national benchmarks across several expense areas.
Housing Costs
Renting in Texas is often considered budget-friendly by many. The average rental price in Texas for all property types is $1,995, slightly cheaper than the national average of $2,072.
Home Value Averages
The national average for home values is around $357,000. You can find property below and above that benchmark based on where you’re living in Texas.
Below is a table showcasing the five largest Texas cities by population:
| City | Average Home Value |
| Houston | $265,434 |
| San Antonio | $250,675 |
| Dallas | $306,959 |
| Fort Worth | $299,339 |
| Austin | $517,589 |
| Statewide | $299,787 |
Utilities
According to the Energy Information Administration, the average American pays $429.33 monthly for utilities. In Texas, the monthly average is slightly lower at $424. Let’s break it down.
| Utility | Texas Monthly Average | Estimated National Monthly Average |
| Energy | $132.40 | $134.09 |
| Water | $37.00 | $37.47 |
| Internet | $30.00 | $30.38 |
| Gas | $61.00 | $61.78 |
| Phone | $114.00 | $115.45 |
| Streaming | $49.50 | $50.12 |
| Total | $424.00 | $429.33 |
Food and Grocery Costs
The grocery cost index — a tool that compares prices across regions by setting the national average at 100 — reveals that many Texas cities enjoy more affordable food prices. For example, in Q2 2022, towns like Harlingen posted an index as low as 78.8, while others, such as El Paso, reached an index of 102.0.
Below is the ranking from lowest to highest:
| City | Grocery Cost Index |
| Harlingen | 78.8 |
| Waco | 82.1 |
| Temple | 82.5 |
| McAllen | 82.5 |
| Cedar Park | 85.0 |
| Corpus Christi | 85.6 |
| Midland | 87.4 |
| Nacogdoches | 88.3 |
| Austin | 88.4 |
| San Antonio | 88.6 |
| Abilene | 89.6 |
| Wichita Falls | 90.1 |
| Lubbock | 91.3 |
| Amarillo | 91.7 |
| Tyler | 92.3 |
| Longview | 92.6 |
| Odessa | 92.7 |
| Fort Worth | 93.1 |
| Conroe | 93.8 |
| Houston | 94.0 |
| Texarkana | 94.2 |
| Dallas | 95.3 |
| Plano | 95.8 |
| El Paso | 102.0 |
Healthcare Expenses
In Texas, healthcare spending per person encompasses a range of expenses, including hospital visits, doctor appointments, and prescription drugs. Adjusted for discounts and bad debts, the average cost per person is $8,406, which is lower than the national average of $10,191. Lower healthcare costs help keep Texas’s overall cost of living more balanced.
Transportation Costs
According to 2023 data from the U.S. Bureau of Labor Statistics, Texas households allocate approximately 16% of their budget to transportation, which is slightly lower than the national average of 16.9%. Of the $12,294 spent annually on transportation, 94.2% goes towards purchasing and upkeep of private vehicles.
Taxes
Texas is one of only a handful of states without a personal income tax, meaning residents primarily pay federal income taxes. As of 2024, federal tax rates range from 10% to 37% based on income levels.
Additionally, Texas imposes a state sales tax of 6.25%, and local jurisdictions can add up to 2%, resulting in a maximum combined rate of 8.25%.
FAQ
Still have questions about the cost of living in Texas? Don’t miss our FAQ section.
What Are the Cheapest Cities to Live in Texas?
These cities offer a lower cost of living, affordable housing, and access to essential amenities: Odessa, Abilene, Round Rock, Leander, Dallas, Corpus Christi, and Rockport.
What Is the Most Expensive City in Texas?
In Texas, Austin and Plano are known for their high costs, but in different ways. Austin’s steep prices are driven by a booming economy, rapid population growth, and high housing demand, thanks to an influx of tech companies and creative professionals. According to Zillow, the average home value in Austin is around $517,589. Meanwhile, Plano stands out for its overall cost of living, as expenses are approximately 25% higher than the Texas average and 16% higher than the national average, making daily life more expensive.
Is Texas Expensive to Live In?
Many regions offer lower housing and utility costs compared to national averages, making the state an attractive option for many residents. However, urban centers like Austin, Dallas, and Houston have seen rising housing, groceries, and healthcare expenses, which can drive up the overall cost.
For many new residents, exploring options like borrowing money can help cover upfront deposits or moving expenses without derailing long-term budgets.
What Is a Good Salary to Live Comfortably in Texas?
Determining a comfortable income in Texas depends on various factors, including location, lifestyle, and household size. For a single person, a salary of $45,000 to $55,000 per year can cover basic expenses, while a family might require between $80,000 and $120,000 annually to enjoy a comfortable lifestyle.
Sources
Zillow, “Texas Rental Market Trends” (Last updated March 2023)
KFF, “Health Spending Per Capita” (Last updated February 2023)
Bureau of Labor Statistics, “Consumer Expenditures in the Dallas-Fort Worth Region” (Released October 2023)
Texas Comptroller “Use Tax” Last updated January 2023)
MIT, “Living Wage Calculator: Texas” (Last updated 2022)