Cost of Living in Texas — Housing, Taxes & Everyday Expenses
No income tax, diverse major cities, booming job market
Data: 2026-Q2 · BLS · HUD · KFFOverview
Texas combines no state income tax with a below-average cost of living and one of the most dynamic job markets in the country. Austin, Dallas, Houston, and San Antonio offer diverse opportunities.
Housing costs
1BR rent ranges from approximately $1,100 in San Antonio to $1,700+ in Austin. Dallas and Houston are approximately $1,300-$1,500. Austin rose significantly 2019-2022 but has moderated.
1BR FMR across major Texas cities: $1,177 – $1,648/mo (HUD FY2026)
Tax reality
Texas has no state income tax.
Texas has no state income tax — a meaningful boost to take-home pay versus high-tax states.
Everyday expenses
At a cost of living index of 93, Texas is about 7% cheaper than the national average of 100. A $70,000 salary in Texas keeps approximately $4,000-$5,000 more per year than in a 6% tax state, providing meaningfully higher purchasing power.
City comparison
Salary reality in Texas
Cost of Living in Texas — FAQ
Does Texas have a state income tax?
No. Texas has no state income tax, saving approximately $4,000-$6,000/year on a $70,000-$100,000 salary compared to a 6% tax state.
Is Texas affordable?
Texas has a cost of living index of 93, about 7% below the national average. Austin has become more expensive but Dallas, Houston, and San Antonio remain affordable.