What’s the cost of living in Texas?
A proper understanding of the cost of living in Texas is essential if you’re considering relocating to this 268,596-square-mile state.
Many beautiful cities and towns in Texas offer an excellent quality of life and a quantifiably reasonable cost of living.
What's the average cost of living in Texas overall?
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 personal consumption expenditure (PCE) is $45,114 annually, working out to $3,760 a month per person.
Housing costs 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:
|Area of Texas||Average Home Cost|
Utility costs 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.
According to Texas Movers, these are the state averages:
|Utility||Average bill amount in Texas|
|Cable and internet||This greatly depends on the deal you select but is usually around $60 per month|
Groceries and food costs in Texas
|Food item||Average cost|
|Milk||Houston: $0.24, San Antonio: $0.26, Dallas: $0.22, Austin: $0.28|
|Bread||Houston: $0.77, San Antonio: $0.64, Dallas: $0.81, Austin: $0.71|
|Apples (0.3kg)||Houston: $1.34, San Antonio: $1.17, Dallas: $1.44, Austin: $1.57|
|A potato (0.2kg)||Houston: $0.45, San Antonio: $0.36, Dallas: $0.73, Austin: $0.54|
|A head of lettuce||Houston: $0.34, San Antonio: $0.33, Dallas: $0.41, Austin: $0.34|
Transportation costs in Texas
With more than 30 million residents, Texas is the second-largest state by area and population. 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:
|Scenario||Annual transportation expenditure|
|One adult, no children||$5,477|
|One adult, one child||$9,851|
|One adult, two children||$12,045|
|Two adults (one working), no children||$9,851|
|Two adults (one working), one child||$12,045|
|Two adults (one working), two children||$14,484|
|Two adults (two working), no children||$9,851|
|Two adults (two working), one child||$12,045|
|Two adults (two working), two children||$14,484|
Healthcare costs 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.
|Scenario||Annual healthcare expenditure|
|One adult, no children||$3,058|
|One adult, one child||$9,474|
|One adult, two children||$9,484|
|Two adults (one working), no children||$7,097|
|Two adults (one working), one child||$9,484|
|Two adults (one working), two children||$9,409|
|Two adults (two working), no children||$7,097|
|Two adults (two working), one child||$9,484|
|Two adults (two working), two children||$9,409|
Childcare costs in Texas
|Scenario||Annual childcare expenditure|
|One adult, one child||$8,189|
|One adult, two children||$16,378|
|Two adults (one working), no children||$0|
|Two adults (one working), one child||$0|
|Two adults (one working), two children||$0|
|Two adults (two working), no children||$0|
|Two adults (two working), one child||$8,189|
|Two adults (two working), two children||$16,378|
|Two adults (two working), three children||$24,567|
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 2023, there are seven federal income tax brackets. The bracket you fall into will determine the rate at which you pay:
|Federal income tax rate||A single person OR a married person/ registered domestic partner filing separately||A married person/ registered domestic partner filing jointly OR a qualifying widower||A head of household|
|10 percent||$0 to $11,000||$0 to $22,000||$0 to $15,700|
|12 percent||$11,001 to $44,725||$22,001 to $89,450||$15,701 to $59,850|
|22 percent||$44,726 to $95,375||$89,451 to $190,750||$59,851 to $95,350|
|24 percent||$95,376 to $182,100||$190,751 to $364,200||$95,351 to $182,100|
|32 percent||$182,101 to $231,250||$364,201 to $462,500||$182,101 to $231,250|
|35 percent||$231,251 to $578,125||$462,501 to $693,750||$231,251 to $578,100|
|37 percent||$578,126 or more for single people, $346,876 or more for married people/domestic partners filing separately||$693,751 or more||$578,101 or more|
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).
How much money do you need to live comfortably 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.
Whether you decide to move to Texas or not, Unbiased will help you confidently take your next financial steps. Don't hesitate to connect with an advisor.
Senior Content Writer
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.