Texas Living: Guide to Cost


If you are looking to move to Texas, you are not alone. A lot of people go there yearly and that is very understandable because what’s there not to love about Texas.

It is also not strange for you to want to know about the cost of living in Texas before making your move. In fact it is a smart choice as this will allow you know whether you will be able to still maintain the same standard of living.


Texas (TX)

If you plan on relocating to Texas, then you will be glad to know that the living cost is actually more affordable than what you must have imagined. So how much does it cost to live in Texas? According to Bureau of Economic Analysis the annual average total personal consumption cost in Texas is $39,661.


Category Average Annual Per-Capita Cost in Texas
Food and Beverages (non-restaurant) $3,309
Gas and Energy Goods $812
Housing and Utilities $7,257
Health Care $5,793
All Other Personal Expenditures $22,490


The average monthly cost per head is $3,305

We will make a comparison between Texas and the average U.S city using a cost of living index. If the number is below 100 then that means that Texas has a lower cost than the U.S average for that particular category.

Cost of Living Texas U.S.
Total 92.6 100
Housing 84.4 100
Utilities 103.3 100
Groceries 90.8 100
Transportation 92 100
Health Care 94.8 100
Miscellaneous 96.7 100


In case the numbers did not paint a really clear picture for you, have no worries as we are still going to discuss those factors in detail below.

Texas Housing Costs

Accommodation costs are a very important factor to put into consideration when moving to a new place and you shouldn’t neglect making appropriate budget for it.

The average home cost in Texas as at the fall of 2021 stood at $350,000 which was about 8% lower than the national average. Also, the average monthly rent price for a two-bedroom apartment in Texas was about 4% lower than the national average.

Bear it in mind however, that the part of Texas where you want to settle in, is a key determinant of the amount you eventually get to pay either to purchase a house or to rent.

It is therefore important that you conduct your research to be sure that you can comfortably afford accommodation in whatever neighborhood of Texas that you decide to settle in. The list we have made below can provide you with some assistance in that regard.


City in Texas Average Home Price Average Apartment Rent
Austin $409,079 $1,583
Dallas $387,379 $1,598
Houston $316,904 $1,095
San Antonio $285,073 $1,382
Amarillo $213,905 $912


Texas Utilities

Utilities costs such as gas, phone and internet services should also be included in your moving budget. This also varies depending on the area you are moving to.

For instance in the eastern city of Texarkana, the cost for utilities is 12% lower than the national average, while in the Sherman-Denison area, utilities costs are about 5% higher than the national average.


Cost of groceries also depends on the location as it varies from place to place but generally it is very affordable. In an area such as San Antonio, groceries cost 16% less than the national average, in Waco it stands at 21% lower than the national average while in El Paso, it is 3% higher.


Transportation costs in Texas are also below the national average. It stands at 22% lower than the national average in Amarillo while in San Antonio, it is 7% lower than the national average.

Another way by which you can save yourself some expenses with regards to unforeseen occurrences when it comes to transportation is by getting proper auto insurance coverage.

Texas Health Care

Health care costs stands at 29% lower than the national average in McAllen and 4% lower than the national average in Longview. If you’ve made some comparisons with other cities in other states in the U.S you will see that what Texas is offering is actually okay.

For example, let’s compare Longview health care costs with that of an average city in the U.S to further buttress our point.


Health Care Type Longview, TX Cost Average U.S. City Cost Cost Difference
General doctor $89 $117 24%
Dentist $100 $101 1%
Eye doctor $121 $109 10%
Advil $10.24 $9.90 3%
Prescription drug $505 $470 8%
Also Read:   Want To Know What Real Estate Is All About


Texas Taxes

Some people automatically have a worry look across their face each time taxes are mentioned in the same sentence as their paycheck. However, you needn’t worry about that in Texas seeing that the state has no state income tax.

Although your paycheck is entirely yours, there are still other taxes that you have to be aware of. One of such is the state sales tax which stands at a rate of 6.25%. If you include its average local rate then you are looking at 8.19%. This places Texas as the 14th highest in the U.S when it comes to total sales tax.

If you need further clarification on this and you wonder how it will affect your finances after you have made your move, be sure to consult a tax advisor.

Miscellaneous Goods and Services

Miscellaneous costs here refer to different things that you would have to spend your money on and that are not as major as housing. These include personal care, entertainment, dinning at restaurants, clothing, etc. These also take up a substantial chunk of your budget so they should be discussed.

In certain places such as Harlingen, they stand at 21% lower than the national average while in some other places such as Corpus Christi it stands at 3% lower than the national average.

What is a livable salary in Texas?

When you started considering moving to Texas, this must have been a major question on your mind. The average household income in Texas stands at $63,826. However, making that amount does not guarantee that you will live very comfortably in all parts of Texas. Remember that some neighborhoods are more expensive than others.

To be able to live comfortably in your neighborhood of choice, you need to check your budget and be sure that you can comfortably afford accommodation there. Depending on your income, you can decide to either buy a home or rent. For whatever choice you make it will be better if you follow the 25% rule.

The 25% rule has it that you shouldn’t move into an apartment or home that requires a monthly payment that is more than 25% of your monthly income.

If you are looking to get a mortgage, then know that the 25% limit here also includes property taxes, private mortgage insurance, homeowners association fees, principal, interest, as well as home insurance.

Adhering to the 25% rule is in your best interest, so that you don’t end up spending all of your money on accommodation and having little or nothing for other necessary expenses. If you wouldn’t want to struggle with your day to day living expenses after you have taken care of your housing costs, follow the 25% rule.

SEE THIS TEXAS Neighborhoods:

Best Neighborhoods in Austin

Best Neighborhoods in Houston

Best Neighborhoods in San Antonio

Best Neighborhoods in Dallas

The Prices in 15 Popular Texas Cities

City Cost of Living Median Home Price
Austin 109 $595,000
Dallas 98 $400,000
Coppell 121 $525,000
Corpus Christi 92 $260,000
El Paso 90 $229,000
Fort Worth 93 $340,000
Frisco 120 $640,400
Galveston 95 $389,000
Houston 94 $329,000
Irving 99 $365,000
Lubbock 87 $235,000
Plano 113 $475,000
San Antonio 88 $280,000
Sugar Land 117 $435,000
Waco 85 $245,000


Compare Data With The One in Your Current City

All that we have been doing so far is throwing more light on the cost of living in Texas. The question for you that is looking to move now is can I comfortably afford it? Am I better off in my current city? One way to put that to rest is by making use of a Cost of Living Calculator. This will help you know whether moving to Texas will be cheaper or more expensive.

If after you have conducted your search you find that Texas is still a bit on the high side for you, don’t lose hope as there are still ways to handle the situation.

One sure way is to increase your income so that you can have more money to take care of things. You can also adjust your standard of living and cut off some unnecessary expenditure. Another method is to move to a cheaper area that is close to your choice neighborhood.

Cost of Living elsewhere