Note: Salary data is based on publicly available BLS occupational employment statistics and other public sources as of early 2026. Individual circumstances vary. This article is for informational purposes only and does not constitute financial or career advice.

Salaries·14 min read·April 21, 2026

Average Salary in Texas 2026

Q: What is the average salary in Texas in 2026?

The average annual wage across all occupations in Texas is approximately $62,500–$66,000 according to BLS occupational employment data, while median household income statewide is approximately $76,000. These figures vary dramatically by metro: Austin and Dallas-Fort Worth lead at average wages of $72,000–$78,000 thanks to deep tech and finance sectors, while Houston averages around $66,000, San Antonio around $58,000 and El Paso around $50,000.

Q: Which Texas city has the highest salaries?

Austin leads Texas in average salaries, particularly in tech roles. A software engineer with 5+ years of experience in Austin earns $135,000–$185,000 base salary, comparable to Bay Area pay minus the cost of living. Dallas-Fort Worth runs slightly behind on tech but stronger on finance, with banking and asset management roles in the $115,000–$175,000 range for senior positions. Houston dominates oil and gas (petroleum engineers can earn $135,000–$210,000+) and healthcare administration.

Q: How does the no income tax help Texas salaries?

Texas has no state income tax, meaning a $100,000 salary in Austin keeps roughly $7,000–$9,000 more per year than the same salary in Los Angeles or Atlanta after state tax. For higher earners, the gap widens — a $250,000 salary in Texas keeps roughly $20,000–$25,000 more per year than in California. Combined with lower housing costs, this typically gives Texas workers 15–25% more real purchasing power than coastal-state peers at the same nominal salary.

Q: What's the highest-paying industry in Texas?

Energy and oil/gas leads on senior compensation, with petroleum and chemical engineers, senior geoscientists, and oil and gas executives commonly earning $175,000–$300,000+. Technology in Austin is a close second with senior software, ML and infrastructure engineers in the $180,000–$250,000+ total compensation range. Healthcare administration, finance and asset management round out the top compensated sectors. Manufacturing wages in Texas are higher than most other states for skilled trades thanks to deep aerospace and chip-fab activity.

Q: What is a livable salary in Texas?

Most Texas metros require an annual salary of $58,000–$80,000 for a single person to live comfortably (50/30/20 budgeting). Austin sits at the higher end at approximately $80,000–$95,000 due to housing costs. Dallas, Houston and Fort Worth fall in the $70,000–$80,000 range. San Antonio and El Paso are achievable on $55,000–$65,000. Households with children typically need 60–80% more than these single-person figures.

Texas pays better than most people realize — and the no state income tax means more of every dollar lands in your pocket. The statewide average wage is approximately $66,000, but the gap between Austin (~$78,000 average) and El Paso (~$50,000) is wide. This guide breaks down real Texas wage data by city, industry and experience level, plus the purchasing-power boost that comes with zero state income tax.

Quick Summary

Texas wages are mid-tier on a national basis but rank near the top once you factor in 0% state income tax and below-average housing costs. A Texas worker earning $100,000 typically takes home roughly the same as a California worker earning $115,000, and once housing is factored in often comes out ahead. Austin and Dallas lead the state on tech and finance salaries; Houston leads on energy; San Antonio and El Paso trail meaningfully but cost of living is also significantly lower.

State Avg Wage

$66K

All occupations

Median HH Income

$76K

Statewide household

Austin Avg Wage

$78K

Highest TX metro

State Income Tax

Boosts take-home

See Your Texas Take-Home Pay

Run your specific salary and city to see how much more you keep in Texas vs your current state.

Paycheck Calculator Cost of Living Calculator

Average Salary by Texas Metro

The variation between Texas metros is significant. Austin leads thanks to deep tech (Apple, Tesla, Oracle, Indeed, Google) and a venture-capital-backed startup base. Dallas- Fort Worth follows close behind on the strength of finance (Charles Schwab, JPMorgan, Goldman Sachs Texas operations), corporate (AT&T, Toyota North America, American Airlines) and growing tech. Houston pays well for energy and healthcare roles. San Antonio and El Paso lag the state averages.

BLS occupational employment statistics and Census ACS data approximate for early 2026.
Metro	Avg Wage (All Occ.)	Median HH Income	COL Index	Notes
Austin-Round Rock	$78,000	$95,000	~110	Tech, startups, state government
Dallas-Fort Worth	$72,000	$84,000	~101	Corporate, finance, growing tech
Houston	$66,000	$76,000	~96	Energy, healthcare, port
San Antonio	$58,000	$66,000	~89	Military, healthcare, tourism
El Paso	$50,000	$57,000	~84	Border trade, military
Plano (DFW suburb)	$95,000	$110,000	~108	Corporate HQs, executives
Frisco (DFW suburb)	$92,000	$140,000	~112	Top-rated suburb, executives

Salary by Industry

Mid-career = 5–10 years experience. Senior = 10+ years. Total comp may include bonus and equity.
Industry / Role	Mid-Career Avg	Senior Avg	Top Texas Cities
Software Engineer	$135K	$180K+	Austin, Dallas, Houston
Petroleum Engineer	$145K	$210K+	Houston, Midland-Odessa
Investment Banker	$165K	$300K+ (with bonus)	Dallas, Houston
Registered Nurse	$78K	$105K	Houston, Dallas, Austin
Marketing Manager	$95K	$140K	Dallas, Austin, Houston
Accountant / CPA	$78K	$120K	Dallas, Houston
Teacher (public school)	$62K	$78K	Statewide
Construction Project Manager	$95K	$130K	Statewide (Austin growth)
Pharmacist	$130K	$150K	Statewide
Mechanical Engineer	$98K	$135K	Houston, Dallas
Cybersecurity Analyst	$108K	$155K	Austin, San Antonio (military)
Sales Director (B2B)	$140K	$200K+	Austin, Dallas

The No-Income-Tax Multiplier

Texas's zero state income tax materially boosts take-home pay relative to most other states. The table below shows how the same gross salary translates to take-home pay in Texas vs three peer states with state income tax:

Single filer, standard deduction, federal + state + FICA only. Approximate.
Gross Salary	TX Take-Home	CA Take-Home	NY Take-Home	GA Take-Home
$75,000	~$59,500	~$54,800	~$54,200	~$55,400
$100,000	~$76,500	~$70,200	~$69,500	~$71,300
$150,000	~$110,500	~$99,800	~$98,800	~$102,500
$250,000	~$176,000	~$152,500	~$150,800	~$159,500
$500,000	~$330,000	~$272,000	~$269,500	~$293,500

The gap widens with income — high earners benefit disproportionately from Texas's no-income-tax advantage. For the full breakdown, see our no income tax states guide and run your numbers in our paycheck calculator.

Salary vs Cost of Living: The Real Picture

Nominal salary is only half the story. Once you adjust for cost of living and state taxes, Texas often outperforms higher-nominal-salary states. A $100,000 software engineer salary in Austin delivers about the same purchasing power as roughly $135,000 in San Francisco or $125,000 in New York City, after adjusting for housing, taxes and other consumer costs.

For a deeper look at Texas living costs, see our Texas cost of living breakdown and our Texas vs California cost comparison. For broader salary context, see our highest paying states ranking.

Calculate Your Real Texas Take-Home

Run your specific salary, deductions and city to see your real take-home pay.

Paycheck Calculator Cost of Living Calculator

Frequently Asked Questions

What is the average salary in Texas in 2026?

The average annual wage across all occupations is approximately $62,500–$66,000 according to BLS data, with median household income around $76,000. Austin and Dallas-Fort Worth lead at $72,000–$78,000 average wages thanks to tech and finance sectors. Houston averages $66,000, San Antonio around $58,000 and El Paso around $50,000.

Which Texas city has the highest salaries?

Austin leads in tech roles. A software engineer with 5+ years of experience in Austin earns $135,000–$185,000 base, comparable to Bay Area pay minus cost of living. Dallas-Fort Worth runs slightly behind on tech but stronger on finance. Houston dominates oil and gas with petroleum engineers earning $135,000–$210,000+.

How does no income tax help Texas salaries?

A $100,000 salary in Texas keeps roughly $7,000–$9,000 more per year than the same salary in Los Angeles or Atlanta. For high earners, the gap widens — a $250,000 salary in Texas keeps roughly $20,000–$25,000 more than in California. Combined with lower housing costs, this typically gives Texas workers 15–25% more real purchasing power.

What's the highest-paying industry in Texas?

Energy and oil/gas leads on senior compensation. Petroleum engineers, senior geoscientists, and oil/gas executives commonly earn $175,000–$300,000+. Technology in Austin is a close second with senior engineers in the $180,000–$250,000+ total compensation range. Healthcare administration, finance and asset management round out the top sectors.

What is a livable salary in Texas?

Most Texas metros require $58,000–$80,000 for a single person to live comfortably. Austin sits at the higher end at $80,000–$95,000 due to housing costs. Dallas, Houston and Fort Worth fall in the $70,000–$80,000 range. San Antonio and El Paso are achievable on $55,000–$65,000. Households with children need 60–80% more.

⚠️ Important: We do NOT collect or store any data you enter. All calculations happen 100% in your browser. Tax calculations use 2026 IRS tax tables (IRS Publication 15-T) and current state tax rates. Cost of living estimates are based on 2026 average market data. This is a free educational tool to help you understand your finances—it is NOT a financial service. Results are for illustrative purposes only and do not constitute professional tax, financial, or legal advice. If you notice any discrepancies, please contact us so we can improve. Consult a qualified CPA or financial advisor for personalized guidance.

Latest Posts

Relocation17 min read