Is Texas cheaper than the national average?

Yes. Texas has an overall cost-of-living index of 93, meaning it is 7% below the national average. Housing is the biggest driver at 84 (16% below average). Groceries, transportation, healthcare, and taxes are also below average. The exception is utilities at 103, slightly above average due to summer cooling costs.

How much salary do I need in Texas to match my California lifestyle?

With California at a COL index of 142 and Texas at 93, you need roughly 35% less salary in Texas. An $80,000 California salary is equivalent to about $52,400 in Texas purchasing power. The savings come mainly from housing (median home $300K in TX vs $750K+ in CA) and no state income tax.

Is Austin more expensive than the rest of Texas?

Yes, significantly. Austin has a cost-of-living index of 115, which is 15% above the national average and 24% above the Texas average of 93. This is driven by its booming tech sector and rapid population growth. Dallas (98), Houston (90), and San Antonio (86) remain well below the national average.

What is the median home price and rent in Texas?

The statewide median home price is approximately $300,000 and the median 2-bedroom rent is $1,350/month as of 2026. These vary significantly by city: Austin median home prices exceed $450,000, while Houston and San Antonio remain under $300,000. Texas housing is 16% below the national average overall.

Does no state income tax make Texas cheaper?

Texas has no state income tax, which saves most workers 3-8% of their salary compared to states like California (up to 13.3%) or New York (up to 10.9%). However, Texas has higher-than-average property taxes (1.6-1.8%) and an 8.25% combined sales tax cap. For renters and moderate-income earners, the tax savings clearly outweigh the higher property/sales taxes.

Texas Cost of Living 2026

7% below the national average — but Austin is the exception. Compare your salary, see the cost breakdown, and check how Texas stacks up against any state.

2026 cost-of-living data · Updated April 2026

Current annual salary

Current state

Moving from California to Texas, you could earn $27,606 less and maintain the same standard of living.

California salary equivalent in Texas

$52,394

Your current salary$80,000

California COL index142

Texas COL index93

Result

Equivalent salary in TX$52,394

You need less by$27,606 (34.5%)

Texas Key Stats

Median home price$300,000

Median 2BR rent$1,350/mo

Median household income$73,000

Texas financial calculators

TX Paycheck TX Sales Tax TX Property Tax TX Retirement Tax

Texas Cost of Living 2026 · Updated April 2026

How to Use This Tool

Tab "Salary Equivalence"

Enter your current annual salary and select the state you live in now. The tool uses cost-of-living indices (100 = national average) to calculate the equivalent salary you would need in Texas to maintain the same purchasing power. Texas sits at 93, meaning most people need less income here than in higher-cost states like California (142) or New York (126).

Tab "Cost Breakdown"

See how Texas compares to the national average across six major spending categories: Housing (84), Groceries (93), Transportation (97), Healthcare (96), Utilities (103), and Taxes (95). Each bar is indexed to 100. Below 100 means Texas is cheaper; above 100 means more expensive. Utilities is the only category above average due to summer cooling costs.

Tab "Compare With 3 States"

Select up to three states to compare against Texas simultaneously. The tool shows the COL index for each state, the equivalent salary needed to match a Texas lifestyle at the median household income ($73,000), and the extra annual cost of living in each state relative to Texas.

The Formula

Salary Equivalence:
Equivalent Salary in TX = Current Salary × (TX COL Index / Current State COL Index)

Example:
$80,000 in California × (93 / 142) = $52,394 in Texas

Cost-of-Living Index:
Each state's COL index is a composite of housing, groceries, transportation, healthcare, utilities, and tax costs relative to the national average of 100. Texas overall = 93. The six category indices are weighted differently: housing carries the most weight (~30%), followed by taxes, transportation, groceries, healthcare, and utilities.

City-Level Variation:
Austin = 115, Dallas = 98, Houston = 90, San Antonio = 86. The statewide 93 average is driven down by the large, affordable metro areas of Houston and San Antonio.

Sources: Missouri Economic Research and Information Center (MERIC), C2ER Cost of Living Index, Bureau of Economic Analysis regional price parities. Data current as of Q1 2026.

Example

Maria — Moving from San Francisco to Dallas

Software engineer earning $120,000 in California. Considering a move to Dallas, Texas.

Current salary (CA)$120,000

California COL index142

Texas COL index93

Equivalent TX salary$78,592

Salary she could accept~$78,600

If she keeps $120K in TX+53% purchasing power

Maria would need only $78,600 in Texas to match her California standard of living. If she keeps her $120,000 salary (common in remote tech roles), her purchasing power increases by 53%. Add zero state income tax, and her actual take-home pay jumps even further. Dallas-specific COL (98) is slightly higher than the state average, but still well below California.

Frequently Asked Questions

Is Texas a cheap state to live in?▼

Texas is 7% below the national average with a COL index of 93. Housing is the biggest advantage at 84 (16% below average), with a statewide median home price of $300,000 and median 2BR rent of $1,350. However, it is not the cheapest state. Mississippi (83), West Virginia (84), and Arkansas (84) are lower. Texas offers a rare combination of affordability and economic opportunity that states with lower COL indices often lack.

Why is Austin so much more expensive?▼

Austin's COL index is 115, making it 24% more expensive than the Texas average and 15% above the national average. This is driven by rapid tech-sector growth: Tesla, Apple, Google, Oracle, and Samsung all have major operations there. Housing demand has outpaced supply, pushing median home prices above $450,000. However, Austin remains significantly cheaper than comparable tech hubs like San Francisco (179) and Seattle (155).

How does Texas compare to Florida for cost of living?▼

Texas (93) is slightly cheaper than Florida (98). Both states have no state income tax, but Texas has lower housing costs overall. Florida's hurricane insurance premiums add a significant cost that does not show up in standard COL comparisons. Texas has lower groceries and healthcare costs, while Florida has slightly lower utilities due to less extreme summer cooling needs in some regions. For most people, Texas edges out Florida on pure affordability.

What are the hidden costs of living in Texas?▼

The biggest hidden cost is property tax. Texas averages 1.6-1.8% effective property tax rate, compared to the national average of 0.99%. On a $300,000 home, that is $4,800-$5,400 per year. The combined sales tax cap is 8.25% (6.25% state + up to 2% local). Utilities run slightly above average (index 103) because summer electricity bills can exceed $200-300/month for cooling. Car insurance rates are also above average. Factor these into any relocation analysis.

What salary do I need to live comfortably in Texas?▼

It depends heavily on the city. In Houston or San Antonio, a single person can live comfortably on $50,000-$60,000 per year. In Dallas, aim for $60,000-$70,000. In Austin, you will need $75,000-$90,000 for the same comfort level. For a family of four, double these figures roughly. The median household income in Texas is $73,000, which provides a comfortable middle-class lifestyle in most of the state outside Austin.

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