Cost of Living in Texas
TX · 30 Cities · Average Index: 96
Cost of Living Trends in Texas
Texas has 30 tracked metropolitan areas with cost-of-living indices ranging from 83 to 115. The statewide average index of 96 places Texas below the national average.
The most affordable city is Lubbock with an index of 83, while Frisco is the most expensive at 115. Housing costs vary the most between metros, driven by local real estate markets, proximity to job centers, and housing supply constraints.
The state income tax rate in Texas is approximately 0.0%, resulting in an estimated take-home pay of $57,638 on a $75,000 salary after all taxes. This is a tax-free state, which can significantly boost purchasing power compared to high-tax states.
Understanding Texas Cost of Living Data
When evaluating a move to or within Texas, look beyond the overall index. Housing is typically the single largest household expense and the category with the most geographic variation. A city with an above-average overall index but below-average housing can be more affordable in practice than a city with lower overall costs but expensive rent.
Use the city profiles above to compare category-by-category, and pair this data with salary information from the take-home pay calculator to assess true purchasing power in each location. State-level policies including income tax rates, sales tax, property tax assessment methods, and public service funding all differ and directly affect how far a paycheck stretches.
Two households earning the same salary in cities with identical cost indices but different states may end up with meaningfully different disposable income after taxes. Factor in Texas-specific tax obligations when comparing cities here against alternatives in other states.
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