What is the cost of living in Texas?

1 min read by Rachel Carey Last updated June 18, 2024

We delve into the Texas cost of living, from taxes, housing, and utilities to groceries, healthcare, childcare, and more.


  • Texas's average personal consumption expenditure (PCE)cost of living per person is around $3,760 a month.

  • Texas does not charge state income tax, meaning those living in Texas will only have to pay federal taxes on their income.

  • State sales tax in Texas is 6.2%.

  • The average rent for an 823-square-foot apartment is $1,100 monthly.

  • A financial advisor can help you develop a financial plan that enables you to achieve your goals.

What is the average cost of living in Texas in 2024?

According to multiple sources, the average cost of living for a single in Texas is around $3,700 per month.

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This is about 7% below the national average and takes housing, groceries, and other expenses into account.

For couples and larger families, this cost will be higher.

The overall cost of living in Texas is tough to pin down since the size of the state is considerable, and prices differ significantly between cities like Houston and Austin and the more rural areas.

Get expert advice to manage the cost of living in Texas

By now, you’re probably starting to get a better idea of whether it is expensive to live in Texas. If the state’s cost of living is higher than expected, there are a few things that you can do to try to manage it.

Consider moving to a more affordable area within or close to your desired city, look for job opportunities that offer a higher salary, and adjust your standard of living with the aim of lowering your expenses.

Let Unbiased match you with a financial advisor who can help you gain control over your finances:

How much will I pay in taxes in Texas?

Texas is one of seven American states that doesn't charge any state income tax, meaning that if you choose to live and work in Texas, you'll primarily need to account for federal income tax.

As of 2024, there are seven federal income tax brackets. The bracket you fall into will determine the rate at which you pay:

Federal tax rateSingle filersMarried couples filing jointlyMarried couples filing separatelyHead of household
10% $0 to $11,600 $0 to $23,200 $0 to $11,600 $0 to $16,550
12% $11,601 to $47,150 $23,201 to $94,300 $11,601 to $47,150 $16,551 to $63,100
22% $47,151 to $100,525 $94,301 to $201,050 $47,151 to $100,525 $63,101 to $100,500
24% $100,526 to $191,950 $201,051 to $383,900 $100,526 to $191,150 $100,501 to $191,150
32% $191,951 to $243,725 $383,901 to $487,450 $191,151 to $243,725 $191,151 to $243,700
35% $243,726 to $609,350 $487,451 to $731,200 $243,276 to $365,600 $243,701 to $609,350
37% $609,351 or more $731,201 or more $365,601 or more $690,351 or more

There is also no corporate income tax for other Texas taxes.

The state sales tax is 6.25%, with local sales taxes charged up to 2% (for a total possible sales tax rate of 8.25%).

You can also check out the complete guide to taxes in Texas here.

How much does housing cost in Texas?

Texas is home to more than 1,200 incorporated cities and over 400 towns.

According to Zillow’s home value index, the average home value in June 2024 is $306,756, which is up 1% over the last year. However, if you're hoping to purchase a property in Texas, things will again vary considerably depending on location.

Here are the average property values for the 10 largest cities in Texas:

Area of TexasAverage home valueArea of TexasAverage home value
Houston $271,476 El Paso $223,913
San Antonio $261,501 Arlington $322,876
Dallas $319,020 Corpus Christi $221,575
Austin $548,654 Plano $533,918
Fort Worth $308,593 Lubbock $210,393

The median rent for all property types in Texas is $1,872, according to Zillow’s Rental Manager. This is an increase of just $22 year-on-year.

However, if you plan to rent in the state, the amount you pay will depend hugely on where you'd like to live.

What is the average cost of utilities in Texas?

According to Forbes, in Texas, you can expect to pay about $424 in utility bills.

This is broken down as follows:

UtilityAverage amount
Energy bill $132.40
Monthly water bill $37
Internet $30
Natural gas $61
Phone bill $114
Streaming $49.50

What are the average grocery and food costs in Texas?

Average grocery and food costs in the Lone Star State vary from region to region.

According to the U.S. Census Bureau, the average American household spends $270.21 per week on groceries and $109.21 on restaurants or fast food. 

Grocery costs in Texas are anything between 3% higher than the national average, such as in El Paso, and 21% lower than the national average, such as in Waco.

What are the average transportation costs in Texas?

With a size of 268,596 square miles and more than 30 million residents, Texas is the second-largest state by area and population.

It should go without saying that access to reliable transport is essential. Due to this, you’re likely factoring in transportation costs when deciding whether this South Central state is the right one for you.

The MIT Living Wage Calculator provides some helpful expenditure averages for several different scenarios:

ScenarioAverage transport costs
Single adult $10,216
Couple (both working) $11,823
Family of four (both adults working) $17,136

How much does healthcare cost in Texas?

Healthcare costs in Texas will vary depending on the type of health insurance you have and what your plan covers, your exact location, your age, and the state of your health.

The annual healthcare expenditure for a single adult with no children is $3,058. Discover the expenditure for people in various circumstances in the table below:

ScenarioAverage medical costs
Couple (both working) $9,675
Family of four (both adults working) $10,147

What is the average childcare cost in Texas?

The cost of living in Texas can be significantly higher for parents than for people who do not have children. This is largely due to the relatively high cost of childcare in the state.

According to the Economic Policy Institute, the average annual cost of infant care in Texas is $9,324. For a four-year-old child, the average cost is $7,062, or $589 monthly.

That said, the various types of childcare available offer flexibility regarding parents' spending. They can also take advantage of state resources such as the Texas Workforce Commission’s child care subsidy program for low-income families.

How much does it cost to live in Texas?

There are many benefits to living in the Lone Star State. Most primarily, given that it's such a large landmass, it's a very versatile place to make your home.

Filled with unique cities and towns, one Texas experience can differ significantly from another. For example, the experience of living in Austin, Texas, and the associated cost of living will be far from the experience and cost of living in rural Texas.

Visit Unbiased to learn more about the cost of living and get expert financial advice on how you can make your money work for you. Let us match you with the best financial advisor for your needs.

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Senior Content Writer

Rachel Carey

Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.

Looking for trusted financial advice?

Unbiased can connect you with a financial advisor who can help you develop a financial plan to meet your goals.