Income Reality in Texas — Taxes, Housing & Salary
No income tax, diverse major cities, booming job market
Data: 2026-Q2 · BLS · HUD · KFFIncome tax overview
Texas has no state income tax.
No State Income Tax — this is a significant advantage. At a $70,000 salary, you keep approximately $6,510 more per year than in a high-tax state like California.
Housing snapshot
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)
Cost of living summary
At an index of 93, Texas is about 7% cheaper than the national average of 100.
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.
Major cities
Purchasing power context
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.
Purchasing Power Reality
What your salary feels like in other cities
Salary reality examples
Comfortable in Dallas, Houston, San Antonio. More stretched in Austin where housing is higher.
Strong purchasing power across all major Texas metros. No income tax is a significant advantage.
Excellent flexibility statewide. Texas is a top destination for high earners leaving high-tax states.
FAQ — Income Reality in Texas
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.
Cities in Texas
Related tools
Cost of Living Index from C2ER. This is a picture, not a verdict.