What is the cost of living in Texas?

 Summary

What is the average cost of living in Texas?

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.

However, data reveals that Texas's average PCE is $45,114 annually, working out to $3,760 a month per person.

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. You can also check out the complete guide to taxes in Texas here. There is also no corporate income tax for other Texas taxes.

The state sales tax is 6.25 percent, with local sales taxes charged up to two percent (for a total possible sales tax rate of 8.25 percent). This certainly helps keep the Texas cost of living reasonable. Let Unbiased match you with a trustworthy financial advisor who can assist you with managing your taxes.

​​​As of 2023, there are seven federal income tax brackets. The bracket you fall into will determine the rate at which you pay:

How much does housing cost in Texas?

Texas is home to more than 1,200 incorporated cities and over 400 towns. The average apartment in Texas is 823 square feet, with an average rent for that apartment size of $1,100 monthly. However, if you plan to rent in the state, the amount you pay will depend hugely on where you'd like to live.

If you're hoping to purchase a property in Texas, things will again range considerably depending on location. Here are the average property purchase prices for the 20 most popular areas in Texas:

How can I 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 to gain control over your finances.

What is the average cost of utilities in Texas?

You may be curious about the cost of utilities in Texas. Even the smaller costs add up month to month, and in a financial climate of inflation, attentiveness to every expense is essential. For most households, the basic utilities include water, gas, and cable and/or internet.

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. Grocery costs 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. It’s important to remember how food and grocery costs can impact the cost of living in Texas for you.

Here’s a comparison of the cost of basic groceries such as milk, bread, apples, potatoes, and lettuce in various Texan cities:

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:

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:

Check out the average cost of health insurance in the US here.

What is the average childcare cost in Texas?

The Texas cost of living 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. Parents spend between $719 and $1,258 or more per child per month.

That said, the various types of childcare available offer flexibility when it comes to how much parents spend. They can also take advantage of state resources such as the Texas Workforce Commission’s child care subsidy program for low-income families. Take a look at average childcare costs in Texas in the table below:

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 for 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.