A Guide to the Cost of Living in Texas

Texas cost of living at a glance

• Average cost of a one-bedroom apartment for rent in Texas is $1,319-$1,600 per month
• Average cost of utilities in Texas is $128.50 per month
• Average annual salary in Texas is $57,382 per year
• Cost of living in Texas is 2.3% lower than in Florida

The cost of living in Texas/Texas cost of living is lower than the national average. The average cost of housing is rated at 84.3/100 which is lower than the national average, making Texas a good place to call home. Of course, the cost of living in Texas varies significantly, depending on where you’re located within the state.

Texas is the second-largest U.S. state in the nation by population and area. The Lone Star State has friendly small towns and large sprawling cities, along with almost any outdoor adventure you can imagine. What’s more, Texas also has an affordable cost of living. To determine whether you can afford to live in Texas, take a closer look at expenses for items such as food, housing, taxes, and bills in Texas.

Texas housing costs

Current housing costs in Dallas:

• Current cost for a studio in Texas: $1,411 per month
• Current cost for a one-bedroom in Texas: $1,426 per month
• Current cost for a two-bedroom in Texas: $1,937 per month

Current housing costs in Houston:

• Current cost for a studio in Texas: $1,369 per month
• Current cost for a one-bedroom in Texas: $1,319 per month
• Current cost for a two-bedroom in Texas: $1,570 per month

Current housing costs in Austin:

• Current cost for a studio in Texas: $1,250 per month
• Current cost for a one-bedroom in Texas: $1,600 per month
• Current cost for a two-bedroom in Texas: $1,995 per month

The cost of living in Dallas is 4% higher than the national average, and Houston housing costs are 1% lower. If you’re interested in moving to Austin, you can expect to pay 1% higher than the national average. You’ll most likely need renter insurance in Texas, especially if your lease mandates it, then you’ll have to get a policy… even though there isn’t a legal requirement on the state or federal level.

Texas utility costs

The average costs of utilities in Texas depend on the area you plan to live in since some areas have deregulated markets. In contrast, some of the larger cities, such as Austin, have monopolies on utilities. People living in deregulated markets often pay more for utilities. Larger Texas cities like Houston and Dallas are deregulated markets. Here’s how much you can expect to pay in Texas’ biggest cities for utilities:

• Dallas: $157.09 per month
• Houston: $148.15 per month
• Austin: $145.71 per month

On average, the monthly energy bill in Texas costs approximately $128.50, or $1,542 annually, which is higher than the U.S. average of $110.26.

Texas food costs

The price of food in Texas varies slightly from one city to another. The prices of individual food vary by city as well. In Dallas, for example, two pounds of apples and beef cost between $3.14 and $11.57, respectively. In Austin, these prices shift to $4.22 and $12.56. Houston, Texas, residents can expect to pay $4.02 and $12.34 for the same food costs. Expect lower prices in towns outside of the major Texas cities, but also fewer options.

Texas transportation costs

If you plan to live in Texas, you’ll need a car. The Lone Star State isn’t known for its excellent public transportation, even in its larger cities. Texas does have the following options:

• Capital Metro – Austin: Tickets are $33 for 31 days
• The DART bus system: Tickets are $2.50 per ride
• Denton County Transportation Authority: Tickets are $45 per month
• Houston Metro: Tickets start at $1.60 per ride

Fortunately, if you have a vehicle, gas prices in Texas are relatively low. The state’s average price of gas per gallon is about $4.368, which is slightly lower than the national average of $4.779.

You also need to have auto insurance (and a valid driver’s license, of course) to drive a vehicle in Texas. The cost of auto insurance in Texas varies depending on several factors, including your driving and credit history, marital status, gender, and age. On average, auto insurance in Texas costs approximately $1,810 per year, which is 26.8% more than the national average. 

Texas healthcare costs

The average cost of health care in Texas is about $424 per month per 2022, which is slightly lower than the national average of $438 per month. Some health care insurance options available in Texas include:

• Ambetter
• Blue Cross and Blue Shield of Texas
• Friday Health Plans
• Aetna Insurance

If you plan to get health care insurance, you should expect to pay an average of $509 for basic health care insurance per month. Prices vary, however, depending on your chosen policy, the size of your family, and household income.

Texas entertainment costs

If you have any money left after paying for housing, food, and transportation, then you may want to have some fun. If you love going to cinemas, expect to pay approximately $11.61 per movie ticket.

Plenty of national and state parks can keep you happy in Texas. Boating, camping, and hiking are all popular activities in the state. Other attractions exist, such as the rare sea turtles of Padre Island National Seashore and the ancient pictographs at the Hueco Tanks State Park and Historic Site. Visiting these sites would cost you about $20 per day, including fees paid for admission tickets and a day tour.

There are many free things to do in Texas, too, including visiting the Texas State Capitol or taking a stroll on the San Antonio River Walk.

Texas educational costs

Suppose you are planning to pursue higher education in Texas. In that case, you may have to spend approximately $5,607 in-state and $16,303 out-of-state per year (including tuition and miscellaneous fees.)

If you fear student loans, the Lone Star State has less expensive options. The following list of colleges in Texas can help you start looking for the best school for your personal and educational goals, all at an affordable average cost:

• Brazosport College (Lake Jackson): $1,560 in-district tuition
• Midland College (Midland): $2,040 in-district tuition
• South Texas College (McAllen):$2,796 in-district tuition
• University of Texas Rio Grande Valley (Brownsville): $8,917 in-district

Keep in mind, these rates don’t include housing or books.

Other expenses to consider when living in Texas

One of the best features of the average cost of living in Texas is that there is no state income tax. This tax elimination can save you much money each year compared to states with high-income tax rates, such as California and Hawaii. When it comes to sales tax and use tax, Texas imposes a 6.25% rate on all retail sales, rentals, and leases of many products, as well as taxable services. 

Don’t overlook the gas tax of 20 cents per gallon. Local taxing jurisdictions, such as counties, cities, transit authorities, and special purpose districts, can also impose up to 2% sales and use tax for a maximum combined rate of 8.25%. Child care in Texas is around $1,180 per month and the cost of a fitness club membership is around $42.09 per month. 

Average salary in Texas

• Dallas: The average salary in Dallas is $63,842 per year.
• Houston: The average salary in Houston is $63,370 per year.
• Austin: The average salary in Austin is $40,769 per year.

What is the cost of living in Texas? As you can see, you’ll find a competitive average cost to live in Texas compared to many other popular states across the United States. Hopefully, this guide has provided you with an idea of what you can expect your cost of living to be if you move to the Lone Star State.

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