Average Salary in Texas (2025-2026)

As of 2025-2026, the average annual salary in Texas stands at $60,000, based on data from the Bureau of Labor Statistics. This figure represents the mean annual wage across all occupations in the state. The median household income, which represents the midpoint of all household incomes, is $73,000.

When evaluating salaries in Texas, it is important to consider the state's cost of living index of 92. This means that goods and services in Texas are approximately 8% less expensive than the national average. The purchasing power of a $60,000 salary in Texas is roughly equivalent to $65,217 in an average-cost area of the United States.

The national average salary in the United States is approximately $63,000 per year. Texas's average salary of $60,000 is 5% lower than the national figure.

Texas ranks among states where salaries are lower than the national average. This is largely driven by factors including the local industry mix, cost of living, demand for skilled workers, and regional economic conditions. Major employment sectors in Texas influence overall compensation levels across the state.

State income tax significantly affects take-home pay. Texas's state income tax system is: None. This means workers in Texas pay no state income tax, which can result in significantly higher take-home pay compared to states with progressive or flat income taxes. However, Texas may have higher property taxes or sales taxes that offset this benefit.

Use our free salary calculator to estimate your exact take-home pay in Texas after federal and state taxes.

With a cost of living index of 92, Texas is less expensive than the national average. Here is how this affects salary purchasing power:

At the average salary of $60,000, your effective purchasing power in Texas is approximately $65,217 relative to national average costs.

Key cost factors include housing (the largest expense for most households), transportation, utilities, food, and healthcare. When evaluating a job offer or considering relocation to Texas, it is essential to consider both the salary and the local cost of living.