Cost of Living in Texas (2025-2026)
The cost of living in Texas is 92% of the national average (US average = 100). This means living expenses in Texas are approximately 8% lower than the typical American household. Housing, utilities, food, transportation, and healthcare costs all contribute to the overall cost of living index.
Quick Answer
The cost of living in Texas is 92% of the US average (index of 92). Housing costs 85% of the national average, utilities 95%, food 94%, transportation 93%, and healthcare 88%. The average salary of $60,000 in Texas has an effective purchasing power of approximately $65,217 nationally.
Key Takeaways
- The cost of living in Texas is 8% lower than the US national average (index: 92 vs. 100).
- Housing in Texas is 15% less expensive than the national average, making it the largest factor in the cost of living.
- A salary of $60,000 in Texas has the purchasing power of about $65,217 in an average-cost US area.
- Use our salary calculator and mortgage calculator to determine if your income supports your desired lifestyle in Texas.
Cost of Living Breakdown
| Category | Texas Index | US Average | Difference |
|---|---|---|---|
| Overall | 92 | 100 | -8% |
| Housing | 85 | 100 | -15% |
| Utilities | 95 | 100 | -5% |
| Food | 94 | 100 | -6% |
| Transportation | 93 | 100 | -7% |
| Healthcare | 88 | 100 | -12% |
Base: US average = 100. Values above 100 indicate above-average costs.
Calculate Your Budget in Texas
Use our free calculators to estimate your salary, mortgage, and taxes in Texas.
Texas Cost of Living Overview
The cost of living in Texas is 92% of the national average, meaning residents pay approximately 8% lower for goods and services compared to the typical US household. This index is calculated based on several key categories that make up the average household budget.
For context, a household earning the Texas average salary of $60,000 per year has an effective purchasing power of about $65,217 when adjusted for national cost differences. This adjustment is critical when comparing job offers or considering relocation between states.
Housing Costs in Texas
Housing is typically the largest expense for households, and in Texas it is 15% below the national average (index: 85). The median home value in Texas is $310,000.
The relatively affordable housing market in this state is a significant advantage for residents.
Use our mortgage calculator to estimate monthly payments based on current interest rates and home prices in Texas.
Utilities, Food, and Transportation in Texas
Beyond housing, the main cost categories in Texas are:
Utilities (index: 95): Below the national average by 5%.
Food (index: 94): 6% below the national average.
Transportation (index: 93): 7% below the national average.
Healthcare (index: 88): 12% below the national average.
Salary vs. Cost of Living in Texas
The relationship between salary and cost of living is essential for financial planning. The average salary in Texas is $60,000 per year. When adjusted for the cost of living index of 92, this salary provides a standard of living equivalent to earning approximately $65,217 in a typical US city.
Texas has a no state income tax, which affects the take-home pay calculation. To estimate your actual after-tax income, use our salary calculator which accounts for both federal and state taxes.
Frequently Asked Questions
What is the cost of living in Texas?
The cost of living in Texas is 92% of the US average, meaning expenses are 8% lower than the typical American household.
How much does housing cost in Texas?
Housing in Texas has a cost index of 85 (national average: 100), making it 15% less expensive than the national average. The median home value is $310,000.
What salary do you need to live comfortably in Texas?
Based on the cost of living index of 92, you would need approximately $65,217 in Texas to maintain the same standard of living as the US average salary of $63,000. The actual amount depends on your lifestyle, family size, and housing choices.
How does Texas cost of living compare to other states?
Texas's cost of living index of 92 places it lower than the national average. State income tax in Texas is: None. Consider both the cost index and tax burden when comparing Texas to other states.
Sources
- US Bureau of Economic Analysis - Regional Price Parities
- Council for Community and Economic Research - Cost of Living Index
- US Census Bureau - American Community Survey
- Zillow Home Value Index
Last updated: June 2026