Texas, known as the "Lone Star State", is the largest no-income-tax state with affordable living but high property taxes. Here is everything you need to know about the cost of living in the Lone Star State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Texas for a single person earning the median income of $67,300/year:
Each category shows how Texas compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Texas.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Texas.
The most popular cities for residents and newcomers in Texas:
Housing is the single biggest expense in Texas, as it is everywhere. The median home price in Texas is $335,000, and the median rent for a one-bedroom apartment is $1,250/month. With a housing cost index of 84, Texas housing is 16% cheaper than the national average.
Housing in Texas is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
Texas is one of only 9 states with no state income tax. This is a major financial benefit — a household earning $67,300 saves approximately $4,038/year compared to a state with a 6% income tax rate. This extra take-home pay effectively reduces your cost of living and increases your purchasing power.
The average single person in Texas spends approximately $395/month on groceries. A family of four can expect to spend $988-$1,185/month. The food cost index of 96 means groceries in Texas are 4% below the national average.
Gas prices in Texas average $2.95/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,770/year in fuel costs.
Texas healthcare costs are 5% below the national average (index: 95). The average annual healthcare cost per person in Texas is approximately $5,700 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Texas averages $950/month ($11,400/year). This is a substantial but manageable expense for dual-income households. Many families in Texas find that one parent staying home is more cost-effective when two or more children need daycare.
Texas offers a solid balance of cost, opportunity, and quality of life. With costs near the national average, you get the added benefit of no state income tax, access to growing job markets in Houston and Dallas, and a cost of living that leaves room for saving and investing.
See all Texas financial calculators:
Texas (TX) has a cost of living index of 93, meaning it is 7% cheaper than the US average. Housing is the biggest factor with an index of 84. The median rent is $1,250/month and the median home price is $335,000. Texas ranks #22 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Texas is approximately $87,490/year ($7,291/month). For a family of four, aim for $148,060/year. This covers housing at 30% of income, groceries ($395/mo), transportation, healthcare, and a 15% savings rate. The median household income in Texas is $67,300.
The median rent for a one-bedroom apartment in Texas is approximately $1,250/month. A two-bedroom averages $1,688/month. Rent varies significantly by city: Houston, Dallas, San Antonio are the most popular metro areas. Housing in Texas is affordable compared to the national average.
Texas is an excellent choice for affordability. With a cost of living 7% below the national average and median rent of just $1,250/month, your money goes significantly further here. The lack of state income tax is an additional major benefit. Top cities include Houston, Dallas, San Antonio.
The most affordable areas in Texas are typically smaller cities and rural areas away from the major metros. Within Texas, costs can vary 20-40% between the most expensive city (Houston metro) and more affordable areas. Austin and Fort Worth tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Texas for a single person is approximately $395 ($988 for a family of four). Texas food costs are 4% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Texas is approximately $150. Total utilities (electric, gas, water, internet) average $330/month. Texas utilities are 3% above the national average. Utility costs are manageable for most households.
Texas has NO state income tax, saving the average household $3,365-$5,384/year compared to states with typical income tax rates. This is one of only 9 states with no income tax. However, Texas may collect more revenue through sales tax or property tax.