Cost of Living in Texas

By Jacqueline DeMarco

(Last Updated – July 30, 2026)

If you’re looking to move to a state with gainful employment, look to Texas. Texas jobs are predicted to increase 1.1% in 2026, according to the Federal Reserve Bank of Dallas.

From Dallas to Austin, there are plenty of great cities to grow a career in. Alongside employment opportunities, the second-largest U.S. state offers a worldwide food scene that goes way beyond barbecue.

To learn more about what it will cost you to live in the Lone Star State, keep reading for a breakdown of the Texas cost of living.

What’s the Average Cost of Living in Texas?

Average Cost of Living in Texas: $54,060 per year

When it comes to expenses in this sprawling state, the 2026 data from the Missouri Economic Research & Information Center (MERIC) found that Texans enjoy the 13th lowest cost of living in the country.

Other Southwestern states, such as Arizona (37th) and Utah (30th) have a much higher cost of living, while New Mexico is more similar to Texas as the state with the 11th lowest cost of living.

So how much does it cost to live in Texas? According to the latest data from the Bureau of Economic Analysis, the average total personal consumption cost in Texas is $54,060 per year. Here’s how that breaks down.

Source: The Bureau of Economic Analysis, Personal Consumption Expenditures by State, 2024

That’s $4,505 a month, per person, on average.

Housing Costs in Texas

Average Housing Costs in Texas: $1,279 to $2,580 per month

With nearly 13 million housing units, according to U.S. census data, Texas offers plenty of places to live. The big question is, how much will it cost you to find your home sweet home? Texas’ typical home value was $302,550 as of May 2026, according to Zillow.

Here’s what it looks like to rent or own on a monthly basis in Texas, per the latest data from the U.S. Census Bureau:

•   Median monthly mortgage cost: $2,106

•   Median studio rent: $1,279

•   Median one-bedroom rent: $1,307

•   Median two-bedroom rent: $1,475

•   Median three-bedroom rent: $1,729

•   Median four-bedroom rent: $2,178

•   Median five-bedroom (or more) rent: $2,580

•   Median gross rent: $1,475

Texas is a huge state. Let’s take a look at housing prices for just 20 cities, courtesy of Zillow data sourced in May 2026.

Source: Zillow, May 2026

Utility Costs in Texas

Average Utility Costs in Texas: $410 per month

Even though they aren’t the most fun bills to pay, we all need our utilities.

Source: Doxo Insights 2026 U.S. Household Bill Pay Report

Groceries & Food

Average Grocery & Food Costs in Texas: $348.75 per person, per month

How much you spend on food depends on many things, including the state you live in. The Bureau of Economic Analysis estimates that the average Texan spends $4,185 a year on nonrestaurant sustenance, or about $349 per month.

The specific area of a state that you live in can also affect grocery spending. The Council for Community and Economic Research, which ranks food costs in major American cities, compared grocery spending among some Texas cities for 2025. Below, the cities are ranked from lowest costs to highest costs.

Source: The Council for Community and Economic Research – Cost of Living Index, 2025

Transportation

Average Transportation Costs in Texas: $9,013 to $16,926 per year

You’ll need to hit the open road from time to time, and your family makeup can affect how much you need to spend to get everyone where they need to go. The Massachusetts Institute of Technology (MIT) Living Wage Calculator estimates what you can expect to spend on transportation, based on the most recent data available.

Source: MIT’s Living Wage Calculator, 2026

Health Care

Average Health Care Costs in Texas: $7,807 per person, per year

Each Texan spends about $7,807 a year on health care, according to the most recent Bureau of Economic Analysis Personal Consumption Expenditures by State report.

Of course, factors such as specific medical needs and coverage affect how much any one person spends on health care.

Child Care

Average Child Care Costs in Texas: $719 to $1,258 or more per child, per month

Child care is a large but necessary expense for most parents, though there is some wiggle room depending on what kind of care you’re seeking.

State resources can help make financing child care easier. For example, the Texas Workforce Commission has a program that subsidizes child care for low-income families so parents can work or pursue an education.

These are the average child care costs you can expect to encounter in Texas, according to the latest data from CostofChildCare.org.

Source: Costofchildcare.org

Taxes

State Tax Rate: None

Texas doesn’t charge any state income tax, as noted by the Tax Foundation’s 2026 overview of state individual income tax rates and brackets. Florida, Tennessee, South Dakota, Wyoming, Nevada, New Hampshire, Washington, and Alaska also don’t charge state income tax.

If you’re moving from a state with high income taxes, such as New Jersey (top marginal rate, 10.75%) or California (top rate, 13.30%), then Texas might look like a pretty smart move.

Miscellaneous Costs

You’ve paid for the basics, and now it’s time to have a little fun. The Bureau of Economic Analysis estimates that every Texan spends $30,702 a year on personal expenditures.

These are a few examples of what it can cost to check out Texas pleasures (costs are as of June 2026).

•  Tickets to the Space Center Houston: $0 to $44.95, depending on age of visitor

•  Family membership to the Houston Zoo: $169 to $349, depending on pass type

•  Dinner at Fort Worth fan favorite Goldee’s Bar-BQ: $21 for a half-pound brisket

And remember the Alamo, in San Antonio. Church entry is free. You can book a tour of the complex for $20 and up.

Recommended: What Are the Average Monthly Expenses for a Single Person?

How Much Money Do You Need to Live Comfortably in Texas?

Only you can decide what it truly means to live comfortably by your standards, but U.S. News & World Report’s Affordability Rankings can give you a pretty good idea of how affordable a state is to live in.

Texas lands 29th on that list of 50, so it’s neither one of the hardest nor easiest places in which to live comfortably. MERIC identified Texas as the 13th most affordable state to live in. Conclusion: Depending on your lifestyle choices, Texas can be easy to live in comfortably.

You’ll want to create a budget to make sure moving to Texas works out in your bank account’s favor.

What City Has the Lowest Cost of Living in Texas?

Digging through the latest Council for Community and Economic Research’s Cost of Living Index yielded the three most affordable major cities in Texas.

FAQ

How much money do you need to live comfortably in Texas?

That likely depends on your lifestyle, family, and where you live. The Bureau of Economic Analysis estimates the expense of living in Texas to be just over $54,000 per person. But if you’re living in a bigger city, want to enjoy a few luxuries, and even save a bit, a 50/30/20 budget would call for about $65,000 or more.

Which city in Texas has the lowest cost of living?

Harlingen is a low-cost standout in the Lone Star State, with a cost of living over 20% lower than the national average. But Amarillo, Abilene, and Nacogdoches are also budget-friendly. From housing to groceries and utilities, these cities can help you stretch your dollar.

What is the average house cost in Texas?

The average home value is $302,550, according to Zillow’s figures for May 2026. But prices vary widely. For example, the average home value in Beaumont is just over $172,000, while homes in Austin can run well over $510,000.

Photo credit: iStock/dszc
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