Cost of Living in Texas (TX)
Compare costs across 26 Texas cities. From home services to salaries, see how TX stacks up against the national average.
26
Cities
92
Avg Cost Index
$60K
Avg Income
Direct Answer
Texas's average cost index is 92, which is below the national baseline of 100. McAllen is the most affordable tracked city in TX at index 78, while Austin is the most expensive at index 112.
The gap between the cheapest and most expensive tracked cities is 34 index points, so state-level averages should be used as a map, not a final budget.
State cost overviewBLS, Census, HUD inputsLast verified May 2026
Texas Highlights: Most affordable city: McAllen (index 78). Most expensive: Austin (index 112). The gap between cheapest and most expensive is 34 index points.
What Drives the Statewide Cost Picture?
Average index
92/100
Texas is below the national cost baseline across tracked cities.
Cheapest city
McAllen
McAllen has a cost index of 78.
Most expensive
Austin
Austin has a cost index of 112.
Income average
$60K
Average median household income across 26 tracked TX cities.
Cheapest and Most Expensive Cities in Texas
| City | Population | Cost Index | Median Income | Tier |
|---|---|---|---|---|
| Houston | 2.3M | 96 | $54K | major |
| San Antonio | 1.5M | 90 | $52K | major |
| Dallas | 1.3M | 101 | $55K | major |
| Austin | 979K | 112 | $75K | large |
| Fort Worth | 959K | 94 | $62K | large |
| El Paso | 679K | 86 | $47K | large |
| Arlington | 394K | 96 | $61K | mid |
| Corpus Christi | 318K | 88 | $53K | mid |
| Plano | 285K | 110 | $96K | mid |
| Lubbock | 264K | 84 | $47K | small |
| Laredo | 255K | 82 | $42K | mid |
| Frisco | 201K | 104 | $117K | mid |
| Amarillo | 200K | 84 | $51K | mid |
| McKinney | 199K | 98 | $94K | mid |
| Brownsville | 187K | 80 | $34K | mid |
| Midland | 146K | 94 | $72K | mid |
| McAllen | 142K | 78 | $44K | mid |
| Denton | 140K | 92 | $52K | mid |
| Waco | 139K | 82 | $39K | mid |
| Round Rock | 133K | 102 | $82K | mid |
| Abilene | 125K | 82 | $44K | mid |
| Odessa | 123K | 88 | $58K | mid |
| College Station | 121K | 88 | $38K | mid |
| Beaumont | 115K | 82 | $43K | mid |
| Sugar Land | 111K | 104 | $110K | mid |
| Tyler | 107K | 84 | $47K | mid |
Texas State Taxes (2026)
Headline tax rates that affect your real take-home pay and total cost of living in Texas.
State Income Tax
0%
No income tax
Combined Sales Tax
8.2%
6.25% state + 1.95% avg local
Property Tax (Effective)
1.8%
~$5,400/yr on a $300K home
Tax friendly: Texas has no state income tax - workers keep more of their paycheck. No state estate tax. Estimate your take-home pay
State Planning Checklist
- Start with McAllen if the priority is lowest recurring cost inside Texas.
- Compare Austin against salary and tax advantages before assuming the higher-cost city is worse.
- Use city pages for rent, salary, insurance, and local service costs before making a relocation decision.