What Is the Cost of Living in Texas?

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What Is the Cost of Living in Texas?

It’s simple to understand why Texans are so proud of their home state. Texas is home to a half-dozen high-performing sports teams as well as delectable cuisines such as brisket, tacos, and Hamburger. The Alamo in San Antonio and the Space Center in Houston are just two of the many cultural attractions. You’ll feel right at home in the Lone Star State since Texans are regarded for being some of the friendliest people in the country.

If you’re thinking about moving to Texas, you’re definitely curious about the cost of living. You’d think that with all the state has to offer; it would be costly. Texas, on the other hand, is a reasonably priced area to live in, with a cost of living that is roughly 6% cheaper than the national average.

Is living in Texas Expensive?

Well, it depends. Texas home costs are substantially below the national average, so you won’t have to break the bank to relocate to the Lone Star State. Home-ownership is within reach, with the average home costing only $241,100. However, if you want to relocate to a highly coveted city such as Austin or Frisco, you may need to spend upwards of $400,000 on your ideal home. You’ll be relieved to learn that the average apartment costs only $1,045 per month if you’re a tenant. However, depending on where you live, that amount may differ slightly.

It is possible to get better deals in smaller towns and cities. Waco, for example, has a monthly median rent of only $862. You’d assume that Texans’ energy bills would be sky-high after running their air conditioners all summer. According to a recent survey, they spend less than the national average and have the 19th cheapest utility bills in the country. Texans pay $409.78 for cable, water, electricity, and natural gas, compared to $422.08 for the average American.

According to MIT, a single person residing in Texas should allocate $264.75 for groceries each month. Food prices are much greater for families with children, and they will need to set up at least $603.16 each month.

You’ll undoubtedly want to eat out on weekends in cities like Austin and Dallas, which are recognized for their vibrant restaurant scenes. Texans spend an average of $221 a month on restaurant meals in addition to their regular shopping spending, according to Business Insider.

How Much Does It Cost to Live Comfortably in Texas?

The average Texan spent roughly $6,110 on healthcare in 2018, somewhat more than the national average of $5,900. Here’s how the money was used in detail:

  • Procedures cost $1,957.
  • Prescriptions cost $1,196.
  • Inpatient care costs $1,205.
  • Outpatient care costs $1,752.

Although medical care in Texas is slightly more expensive, the cheap utility expenses and affordable home prices more than compensate. You’ll probably need a car to get around unless you move to a big city like Dallas or Austin. Texas is in the middle of the pack when it comes to transportation costs – it isn’t the most expensive, but it isn’t the cheapest either.

Gas prices are often low, saving you an average of $146 per year. However, at $152 a month, Texas car insurance is more expensive than the national average, so it’s mostly a wash. Overall, you should anticipate spending roughly $3,181 per year on your car’s use and maintenance.

If you want to buy a car when you move to Texas, the price will vary depending on where you live. El Paso is the sixth most costly city in the country to buy a used car, with used autos costing 8% more than the national average. However, if you’re willing to drive to Austin or San Antonio, where cars are less expensive than in the rest of the country, you might be able to get a nice deal.

Is Texas a Good Place to Retire?

Yes. To cover all of their bills in Texas, a single person requires a salary of at least $30,780. You’ll only need to earn $23,155 per year if you have a working partner to split living expenses with.

Families with children require a somewhat higher income to make ends meet. A single parent of a family of three needs to make roughly $58,901 per year, whereas a single parent of one has to earn around $62,470 per year.

The more children you have, the higher the costs get. MIT’s living wage calculator will help you figure out how much you’ll need to earn, dependent on the size of your family. Texas is one of only eight states that does not have a state income tax. There is also no estate tax, making it an excellent spot to spend your golden years. If your estate is worth more than $11.7 million, you may still be subject to federal estate tax.

Although Texas does not have a state-level property tax, you will be responsible for paying municipal taxes. Texans pay one of the highest property tax rates in the country, at 1.81 percent, according to The Balance. Taxes are calculated based on the value of your home. So, if your house is worth $200,000, you’ll owe $3,620 every year. Fortunately, there are some property tax exemptions that might help you save money on your taxes.

Texas also has a 6.25 percent statewide sales tax. However, because local governments can tack on their own tax, you could end up paying as much as 8.25 percent in some regions of the state. One silver lining is that Texas does not charge sales tax for a few days during the summer. You’ll save a lot of money if you make your large purchases then.

Is It Costly to Live in Texas?

Not necessarily. With a typical home value of around $63,000, Raymondville has the lowest cost of living in Texas. That’s $180,00 less than the state’s average home price. At $671 per month, rent is also fairly inexpensive.

Saving money on housing isn’t the only thing you’ll be able to do. Raymondville residents, according to Salary.com, pay roughly 12% less on both energy and food than the national average. In addition, they save 16.6% on transportation and 2.1 percent on healthcare.

Hiring a knowledgeable buyer’s agent will make the relocation process much smoother, whether you’re moving to Raymondville or anywhere else in Texas. The Lone Star State lives up to its reputation as being one of the most cost-effective places to live. Texas has a cheaper cost of living than the national average by around 8%.

Although living in a city costs more, large cities like Austin and Houston have a cost of living that is 2-3 percent lower than the national average. Consider making a budget to get a more accurate understanding of the cost of living in Texas. You can locate an excellent apartment guide online or utilize a computer-based cost of living calculator. Housing costs are likely to be your largest monthly expense, so plan your budget around that figure. Also, don’t forget to factor in the expense of your automobile and transportation. If you’re thinking about moving to Texas, you should do some research and compare real estate costs in the area.

Is Texas Worth It?

Texas is a fantastic area to live in, whether you want to be near the beach or in the heart of the city. The state enjoys pleasant weather and a burgeoning job sector. As a result, housing costs in Texas are often cheaper than the national average. Furthermore, property costs in Texas are often cheaper than the national average, allowing you to purchase a home.

Another high cost is getting to work. On average, Texans spend about half of their time traveling by automobile, equating to a petrol expenditure of over $7,000 per year. Even if the average cost of a car is lower in rural locations, you’ll still have to pay more for gas. A new car can set you back at least $1,200. Buying a car is a costly investment; therefore, having a reliable vehicle is important.

Another high cost in Texas is health care. Health insurance costs in Texas are $5,110 per person, which is 4% higher than the national average. In Texas, basic health insurance costs around $509 per month, although prices vary depending on the coverage, family size, and household income. Because Texas does not have a state income tax, you can save money on your health insurance in the long run.

The cost of housing in Texas is another significant factor in the overall cost of living. In the United States, the average cost of housing is $1,250, yet a studio apartment in Harlingen costs only $932. A one-bedroom apartment in Dallas costs about $1272 per month on average. Furthermore, while the cost of living in Houston is higher than the national average, the extra money spent to pay for the location is well worth it.

Moving to a lower-cost state can improve your job market competitiveness. However, it isn’t the best option for everyone. There are numerous advantages and disadvantages to relocating to Texas. Although the state’s cost of living is lower than the national average, it is not the ideal option for everyone. Before deciding to migrate, it’s critical to think about these concerns.

Does Texas Have Less Transportation and Utility Costs?

It depends. Texas has a higher cost of living than the rest of the country. Texas has a higher housing expense than the rest of the country. Texas is an expensive place to live in, despite the state’s average of $3,948. In general, the state’s cost of living is lower than the national average. Despite its high cost, housing remains a desirable alternative for many individuals. You can easily live comfortably in a low-cost state while maintaining a high standard of living.

Transportation expenditures, in addition to housing costs, play a significant role in determining the cost of living in Texas. Because most Texans drive to work, petrol is a significant expense. Every year, the average Texan travels 9,638 miles. It’s unsurprising that a Texas city’s petrol price is higher than the national average. When relocating to a new place, it’s critical to consider this to guarantee that you can afford the lifestyle you’ve always desired.

Texas has a lower cost of living than the national average, which is a big plus for immigrants. The median home price in the state is $385,000, over double the national average. Meanwhile, the average annual cost of gasoline in Texas is $758. The national average is a little more than $1,000. $1,500 is the national average. To put it another way, the cost of living in Texas is the same as it is in the rest of the country. Now, It is obvious for you to decide whether Texas is affordable for you.


Texas has a $7.25 minimum wage, which is the same as the federal minimum wage. However, according to the MIT Living Wage Calculator, this rate is substantially below the actual living wage in Texas for a single adult without children. According to MIT’s figures, such a person’s living wage in Texas is $11.48. The MIT living wage increases to $14.78 for two adults and two children.

According to a 2016 analysis from the Health Care Cost Institute, seven of the eight Texas metro areas have median healthcare prices that are at or above the national average. Dallas (16%) and Houston (16%) have the highest healthcare costs in the Lone Star State (10 percent ). The Corpus Christi area is the lone outlier, with a median income that is 4% lower than the national average. To obtain a sense of the general cost of living in Texas, you’ll need to look at both state-level and local-level data. While Texas has a lot of big cities, it also has a lot of little towns with cheap costs and incomes.

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