United States
Cost of living in Texas
Cost of living in Texas registers at 97.1, about 3 percent below the US average of 100, ranking it 25th most expensive nationally, tied with Maine. Texas has no state income tax, a structural advantage that materially increases take-home pay for all wage earners regardless of income level. The state collects a sales tax at a base rate of 6.25 percent. For a household earning $85,000, the absence of income tax saves roughly $4,000 to $5,000 per year compared with a mid-rate state, an advantage that compounds considerably for higher earners. Texas is one of the largest and most geographically diverse states in the country, and its cost profile reflects that range. Austin has climbed well above the national average on housing, while Houston, San Antonio, and Dallas maintain more moderate cost levels relative to their size. Smaller cities and rural Texas remain among the more affordable places to live in the continental United States.
Price level
97.1
US = 100
National rank
26th
of 51, dearest first
Income tax
None
none
Sales tax
6.25%
state base rate
What your salary is worth in Texas
Because prices here sit at 97.1 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in Texas to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $58,260 | $97,100 |
| California (dearest) | $52,629 | $87,715 |
| Arkansas (cheapest) | $67,043 | $111,738 |
Compare Texas with anywhere in the US
To live the same in California you need
$79,804
to match $70,000 in Texas
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
Texas in context
Texas offsets its lack of income tax through property taxes, which rank among the highest in the country as a share of assessed home value. Homeowners in the major metros pay effective property tax rates that regularly exceed 2 percent, a cost that accrues annually and offsets a portion of the income tax savings. That charge also flows into rents, so renters are not entirely insulated from the property tax burden. Austin's housing market in particular saw dramatic appreciation through 2021 and 2022, and while prices have pulled back from peaks, the city remains considerably dearer than the statewide average. Houston and San Antonio offer lower per-square-foot costs and larger housing stock, making them more representative of the Texas value proposition. For businesses and remote workers relocating from high-income-tax states, Texas remains a compelling financial destination despite the property tax offset.
The closest state above Texas on price is Maine at 97.1. Just below sits Georgia at 96.3.
Frequently asked questions
Is Texas expensive to live in?
Texas sits at a price level of 97.1 where the US average is 100, so a typical basket of goods and services costs about 3% less than the national norm. That ranks it 26th most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in Texas?
To match the buying power of $60,000 earned at the US average, you would need about $58,260 in Texas. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does Texas charge?
Texas applies no state income tax and a base state sales tax of 6.25%. No state individual income tax. State sales tax base rate 6.25%. Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.