Income Reality in Texas — Taxes, Housing & Salary

No income tax, diverse major cities, booming job market

Data: 2026-Q2 · BLS · HUD · KFF
Cost of Living Index
93
Median Household Income
$79,721
State Income Tax
No income tax
Median Rent
$1,800/mo

Income tax overview

Texas has no state income tax.

No State Income Tax — this is a significant advantage. At a $70,000 salary, you keep approximately $6,510 more per year than in a high-tax state like California.

Housing snapshot

1BR rent ranges from approximately $1,100 in San Antonio to $1,700+ in Austin. Dallas and Houston are approximately $1,300-$1,500. Austin rose significantly 2019-2022 but has moderated.

1BR FMR across major Texas cities: $1,177 – $1,648/mo (HUD FY2026)

Cost of living summary

At an index of 93, Texas is about 7% cheaper than the national average of 100.

Texas combines no state income tax with a below-average cost of living and one of the most dynamic job markets in the country. Austin, Dallas, Houston, and San Antonio offer diverse opportunities.

Major cities

Austin

1BR $1,562/mo

Dallas

1BR $1,648/mo

Houston

1BR $1,323/mo

San Antonio

1BR $1,177/mo

Purchasing power context

A $70,000 salary in Texas keeps approximately $4,000-$5,000 more per year than in a 6% tax state, providing meaningfully higher purchasing power.

Purchasing Power Reality

What your salary feels like in other cities

Your 60-80k in Austin feels like approximately $83,044 in Denver — your purchasing power increases by 19%
Your 60-80k in Austin feels like approximately $73,854 in Dallas — your purchasing power increases by 6%
Your 60-80k in Austin feels like approximately $70,717 in Nashville — your purchasing power increases by 1%

Salary reality examples

$60-80k ~$4,803/mo take-home

Comfortable in Dallas, Houston, San Antonio. More stretched in Austin where housing is higher.

$80-100k ~$5,975/mo take-home

Strong purchasing power across all major Texas metros. No income tax is a significant advantage.

$100-130k ~$7,441/mo take-home

Excellent flexibility statewide. Texas is a top destination for high earners leaving high-tax states.

FAQ

FAQ — Income Reality in Texas

Does Texas have a state income tax?

No. Texas has no state income tax, saving approximately $4,000-$6,000/year on a $70,000-$100,000 salary compared to a 6% tax state.

Is Texas affordable?

Texas has a cost of living index of 93, about 7% below the national average. Austin has become more expensive but Dallas, Houston, and San Antonio remain affordable.

Cities in Texas

AustinDallasHoustonSan Antonio

Related tools

Salary Reality Checker → City Comparison Salary Equivalency

Cost of Living Index from C2ER. This is a picture, not a verdict.

Income Reality Check is an educational tool, not financial advice. Your situation has more dimensions than any tool can capture.