Cost of Living for Texas (2026)
Texas (TX) Key Facts
Cost of Living Index
92
National Average Index
100
Median Household Income
$67,000
Approximate Median Rent (1 B R)
$1,100/month
State Income Tax Rate
None (no state income tax)
How This Calculator Works in Texas
This cost of living calculator helps you compare salaries between Texas and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses Texas's cost of living index of 92 relative to the national average of 100 to provide an accurate comparison.
Texas Overview
Texas has a cost of living index of 92, where 100 represents the national average. Texas has a below-average cost of living overall, but costs are rising rapidly in Austin, Dallas, and Houston. The absence of a state income tax is a significant financial advantage that partially offsets housing cost increases. The median household income is $67,000, which has a purchasing power equivalent of approximately $72,826 in an average-cost location.
How Texas Compares
Texas's cost of living index of 92 compares to Louisiana's 92 and Oklahoma's 87. Residents in Texas benefit from lower costs compared to the national average, meaning salaries stretch further here. The most affordable states like Mississippi (84) cost roughly 10% less than Texas, while the most expensive like Hawaii (192) cost 109% more.
| State | Top Rate | Notes |
|---|---|---|
| Louisiana | COL Index: 92 | Louisiana has a cost of living index of 92 and a median household income of $52,000. It has a similar cost of living to Texas. |
| Oklahoma | COL Index: 87 | Oklahoma has a cost of living index of 87 and a median household income of $55,000. It is more affordable than Texas. |
| New Mexico | COL Index: 93 | New Mexico has a cost of living index of 93 and a median household income of $53,000. It is more expensive than Texas. |
The national average cost of living index is 100. Texas's index of 92 is below the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. Texas's median household income of $67,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for Texas Residents
- 1Texas has a below-average cost of living overall, but costs are rising rapidly in Austin, Dallas, and Houston. The absence of a state income tax is a significant financial advantage that partially offsets housing cost increases.
- 2Texas's median household income of $67,000 has a real purchasing power of about $72,826 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3Texas has no state income tax, which effectively increases your purchasing power compared to states with similar costs of living but income tax obligations.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within Texas between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.