Cost of Living in Texas 2026 — Housing, Income & Taxes

📊 Texas at a Glance — 2026

Cost of Living Index

US average = 100 · Slightly Below Average

Median Household Income

$64,000

Source: U.S. Census Bureau ACS

Average 1BR Rent

$1,350/mo

Source: Zillow Observed Rent Index

State Income Tax

None — 0%

No state income tax

Average Home Price

$285,000

Source: Zillow Home Value Index

Salary Needed (30% rule)

$54,000

To keep housing under 30% of income

📈 Texas vs the National Average

Cost of Living

Texas runs 6% below the national average (index 94 vs. the U.S. baseline of 100). Texas keeps housing relatively affordable through abundant land and famously permissive zoning, especially compared to other large, fast-growing states. On the tax side, Texas applies no state income tax, offset partly by property tax rates that run above the national average.

💡 What Salary Do You Need in Texas?

Using the 50/30/20 budget rule, housing should cost no more than 30% of your gross income. With average rent at $1,350/month in Texas, you need roughly $54,000/year to live comfortably without being housing-cost-burdened.

Find out exactly how much you take home after Texas taxes

💰 Calculate Texas Take-Home Pay → 🏡 See How Much Home You Can Afford →

Is Texas expensive to live in?

Texas's cost of living index is 94, where 100 is the U.S. average — that's 6% below the national average. Texas keeps housing relatively affordable through abundant land and famously permissive zoning, especially compared to other large, fast-growing states. The biggest local industries are energy, technology (Austin's growing tech corridor), and a large logistics and trade sector, centered around Houston, Austin, Dallas, and San Antonio.

What is the average rent in Texas in 2026?

A 1-bedroom apartment in Texas averages $1,350/month as of 2026 (Zillow Observed Rent Index). That's set against a median household income of $64,000/year, so rent alone runs roughly 25% of the typical household's pre-tax income.

What salary do you need to live in Texas?

Following the standard 30%-of-income guideline for housing, you'd want roughly $54,000/year to cover Texas's average rent comfortably. That's a general rule of thumb, not a hard rule — your real number depends on debt, family size, and where in Texas you're looking. Our free paycheck calculator shows your actual take-home pay after Texas taxes.

Does Texas have a state income tax?

Texas applies no state income tax, offset partly by property tax rates that run above the national average. Use our free paycheck calculator to see exactly how that affects your specific take-home pay.

🔗 More Free Tools

💰 PayCalc Pro — See your take-home pay after Texas taxes 🏡 HomeBuy Calc — How much home can you afford in Texas? 📊 Compare All 50 States — Cost of Living by State 2026

Cost of Living in Texas 2026 — Full Guide

Texas's cost of living index sits at 94, meaning it runs 6% below the national average. Texas keeps housing relatively affordable through abundant land and famously permissive zoning, especially compared to other large, fast-growing states.

Texas's Economy

Texas's economy centers on energy, technology (Austin's growing tech corridor), and a large logistics and trade sector, with most of that activity concentrated around Houston, Austin, Dallas, and San Antonio. That local economic base shapes everything from job availability to how quickly housing supply responds to demand — a state built around a few large employers behaves very differently, cost-wise, than one with a diversified metro economy.

Housing Costs in Texas

The average rent for a 1-bedroom apartment in Texas is approximately $1,350 per month in 2026. Average home values sit around $285,000. Texas keeps housing relatively affordable through abundant land and famously permissive zoning, especially compared to other large, fast-growing states.

Taxes in Texas

Texas applies no state income tax, offset partly by property tax rates that run above the national average. Combined with federal taxes, this determines your real take-home pay — use our free paycheck calculator to see the exact impact on your specific salary rather than relying on a statewide average.

Data Sources

Cost of living index data is based on the Council for Community and Economic Research (C2ER) methodology. Income figures are from the U.S. Census Bureau American Community Survey (ACS). Rent data is sourced from the Zillow Observed Rent Index. All figures represent approximations and should be verified with official sources for financial planning.

All data is for informational purposes only and is not financial or legal advice.

Cost of Living inTexas 2026