Cost of Living in Texas 2026: City-by-City Breakdown & Savings Guide

Texas at a Glance: Key Numbers for 2026

Those headline numbers tell an encouraging story, but Texas is a massive state — the second largest by both area and population. Living costs in downtown Austin look very different from those in El Paso or Lubbock. Below, we break down every major spending category and compare the state’s biggest metros so you can find the right fit for your budget.

Housing Costs in Texas

Housing is typically the largest line item in any household budget, and it is where Texas delivers its most significant savings compared to high-cost states. Statewide, housing costs run approximately 16% to 19% below the national average, according to data from the Bureau of Labor Statistics and C2ER. However, the gap between the most and least expensive Texas cities is substantial.

The median home price across Texas sits near $290,000 in early 2026 — well below the national median of roughly $350,000. Meanwhile, average two-bedroom rents statewide hover around $1,100 per month, compared to $1,350 nationally. If you are coming from California, where the median home price exceeds $725,000, the savings are dramatic.

Austin stands out as the priciest Texas metro for housing. The tech boom that brought companies like Tesla, Oracle, and Samsung to the area has pushed median home prices above $420,000. Dallas follows, fueled by strong corporate relocation activity and population growth. By contrast, San Antonio and El Paso remain genuinely affordable.

Groceries & Dining

Grocery costs in Texas are roughly 5% below the national average. A single person can budget approximately $380 per month for groceries, while a family of four typically spends around $1,235 per month on food at home. The state benefits from its massive agricultural industry — Texas is the nation’s top producer of cattle and cotton, and a major supplier of fruits and vegetables.

Dining out is also affordable relative to coastal cities. A mid-range restaurant meal for two in Houston or San Antonio averages $50 to $65, while the same meal in San Francisco or New York City runs $75 to $100. Fast-casual lunches typically cost $10 to $14 in most Texas metros.

Groceries do not vary as dramatically between Texas cities as housing does. Austin and Dallas grocery indexes sit around 96–97, while Houston and San Antonio come in at 93–94. The difference amounts to just $15 to $25 per month for a typical household.

Utilities & Energy Costs

Utilities are the one category where Texas is slightly above the national average — about 3% to 4% higher. The primary driver is electricity for air conditioning. Texas summers are long and intense, and households in Houston, Dallas, and San Antonio routinely see electricity bills of $155 to $230 per month during peak summer months (June through September).

A typical monthly utilities breakdown in Texas looks like this: electricity ($155–$231), water and sewer ($45–$60), natural gas ($30–$40), and internet ($50–$70). Total monthly utility costs average about $310 per month for a standard two-bedroom apartment, compared to roughly $300 nationally. In winter, electricity bills drop significantly, helping to balance the summer peaks.

Texas operates on a deregulated electricity market in most areas, meaning consumers can shop between providers for the best rate. This can be a significant advantage if you compare plans carefully — fixed-rate plans protect against summer price spikes.

Healthcare Costs

Healthcare costs in Texas track close to the national average, running approximately 3% to 5% below median U.S. levels. The state has a vast network of medical facilities, including the renowned Texas Medical Center in Houston — the largest medical complex in the world. This concentration of providers helps keep costs competitive.

Average healthcare costs for a single person hover around $480 per month (including insurance premiums and out-of-pocket expenses), compared to roughly $500 nationally. For families, employer-sponsored health insurance premiums in Texas average about $6,200 per year for the employee contribution, which is slightly below the national average of $6,500.

One thing to note: Texas has not expanded Medicaid under the Affordable Care Act, which affects low-income residents who fall into the coverage gap. If you earn between 0% and 100% of the federal poverty level and do not qualify for traditional Medicaid, you may have limited options. Marketplace plans are available but may carry higher premiums for this group.

Transportation

Texas is a car-dependent state. Public transit exists in the largest metros — Houston has METRO, Dallas has DART, and Austin recently expanded its bus rapid transit network — but the vast majority of residents drive. Gas prices in Texas are typically $0.20 to $0.40 per gallon below the national average, thanks to the state’s proximity to refineries along the Gulf Coast.

Average monthly transportation costs run about $350 per month, covering gas, car insurance, maintenance, and registration. Car insurance rates in Texas are above the national average — about $1,800 to $2,100 per year for full coverage — partly because of high traffic volumes in the DFW and Houston metropolitan areas.

City-by-City Cost of Living Comparison

Texas has several major metros, each with a distinct personality and cost profile. The table below summarizes the overall cost of living index and key expenses for the state’s biggest cities.

Austin

Austin is the most expensive major city in Texas, driven by its booming tech sector and rapid population growth. The metro has seen an influx of tech workers from the San Francisco Bay Area and Seattle, which has pushed housing prices well above the state average. That said, Austin’s cost of living index of approximately 97 is still below the national average and dramatically cheaper than the Bay Area (index ~180). For a deeper look at the California-to-Texas move, see our detailed comparison.

Dallas–Fort Worth

The DFW metroplex is the economic engine of North Texas and the fourth-largest metro area in the country. With a cost of living index of about 102, it sits right at the national average. Housing remains the biggest expense — median home prices are around $365,000 — but the region’s massive job market in finance, logistics, and defense contracting provides strong earning potential. Many Fortune 500 headquarters call DFW home.

Houston

Houston offers a compelling balance of affordability and opportunity. With a cost of living index of about 94, the nation’s fourth-largest city is genuinely below average in overall expenses. The energy industry anchors the economy, but healthcare (Texas Medical Center), aerospace (NASA Johnson Space Center), and manufacturing add significant diversity. Average two-bedroom rents hover near $1,350, and the median home price sits around $310,000.

San Antonio

San Antonio is the most affordable of the “Big Four” Texas metros, with a cost of living index of approximately 91. The military presence (Joint Base San Antonio encompasses three major installations) provides economic stability, while tourism, healthcare, and cybersecurity are growing industries. Median home prices near $275,000 and average rents around $1,200 make it an attractive destination for families and retirees alike.

Smaller & More Affordable Texas Cities

Beyond the major metros, Texas has dozens of smaller cities with even lower costs. El Paso, with a cost of living index near 88, offers cross-border culture and very affordable housing. Lubbock and Amarillo in West Texas, Corpus Christi on the coast, and McAllen in the Rio Grande Valley all feature living costs 10% to 19% below the national average. These cities are particularly appealing for retirees and remote workers who prioritize affordability over big-city amenities. Check out our cheapest states guide to see how Texas compares nationally.

Monthly Cost Breakdown: Texas vs. National Average

The following table summarizes what a single person can expect to spend per month in Texas compared to the national average. These are statewide averages — your actual costs will vary based on which city you choose and your personal spending patterns.

The overall savings of roughly $300 per month ($3,600 per year) on living expenses are significant on their own — and that is before factoring in the state income tax advantage. For someone earning $80,000 per year who would have paid, say, 5% state income tax elsewhere, that is another $4,000 in annual savings. Combined, a typical household can keep $5,000 to $10,000+ more per year by relocating to Texas.

The Texas Tax Advantage: No State Income Tax

Zero state income tax is the headline benefit that draws many people to Texas. As one of only nine states with no income tax, Texas lets you keep your entire paycheck (minus federal taxes and FICA). The savings scale with income:

These estimates assume you are comparing Texas to a state with a 3% to 6.5% effective income tax rate. If you are leaving California (top marginal rate of 13.3%) or leaving New York (top rate of 10.9% plus NYC surcharge), the savings are even larger. Use our Paycheck Calculator to see your exact take-home pay in Texas versus your current state.

How Texas Compares to Other Popular States

People considering Texas often weigh it against Florida (another no-tax state), California, and New York. Here is how the numbers stack up at a high level. For a complete 50-state comparison, see our cost of living by state guide.

Against California and New York, Texas offers dramatically lower costs across the board plus the income tax advantage. Against Florida, the comparison is more nuanced: Florida has slightly higher overall living costs (index 102 vs. 93) and higher homeowner insurance premiums due to hurricane risk, but lower property tax rates. Both states charge zero income tax. If you are comparing these two, our Florida relocation guide provides more context.

Who Should Consider Moving to Texas?

Texas is not the right fit for everyone, but certain profiles benefit enormously from the move:

• High-income earners in high-tax states — Eliminating state income tax on a six-figure salary can save $8,000 to $15,000+ per year. Tech workers from California and finance professionals from New York are among the most common movers.
• Remote workers — If your employer is based in a high-cost city but you can work from anywhere, Texas lets you keep a coastal salary with Texas-level expenses. Check our remote worker guide for more options.
• Families looking for affordable housing — Cities like San Antonio, Fort Worth, and El Paso offer three-bedroom homes for under $300,000, which is increasingly rare in many parts of the country.
• Retirees on fixed incomes — No income tax on Social Security, pensions, or retirement withdrawals means more of your savings stays in your pocket. See our retirement state rankings for the full picture.

On the other hand, if you prefer mild summers, robust public transit, or a smaller environmental footprint from energy production, Texas may not align with your priorities. The state is car-dependent, summers exceed 100°F for weeks at a time in most metros, and utility bills spike during those months.

How Much Does It Cost to Move to Texas?

The one-time cost of an interstate move to Texas depends on distance, volume of belongings, and whether you use a full-service mover or a DIY option. On average, a long-distance move from the East Coast (e.g., New York to Houston) runs $4,500 to $8,500 for a full-service mover handling a three-bedroom household. A shorter move from a neighboring state like Louisiana or Oklahoma typically costs $1,500 to $3,500.

DIY options like renting a moving truck can cut costs to $1,200 to $3,000 for a cross-country move. Use our Moving Cost Estimator to get a personalized estimate based on your origin, destination, and home size.