Living in Texas: Income, Housing, Taxes & Cost of Living (2026)
By Wealthvieu
·
Updated
Table of Contents
Texas at a Glance
| Metric |
Value |
National Rank |
| Population (2024) |
30.5 million |
2nd |
| Median household income |
$73,035 |
Average |
| Median home price |
$300,000 |
Average |
| Cost of living index |
92 |
Below average |
| State income tax |
None |
N/A |
| Sales tax |
6.25% (+ local up to 2%) |
Average |
| Property tax (effective rate) |
1.60% |
6th highest |
Income and Housing by Major Metro
Houston (4th largest US city)
| Area |
Median Income |
Median Home Price |
Median Rent (2BR) |
| Houston (city) |
$62,000 |
$290,000 |
$1,350 |
| The Woodlands |
$125,000 |
$440,000 |
$1,800 |
| Sugar Land |
$110,000 |
$390,000 |
$1,650 |
| Katy |
$100,000 |
$350,000 |
$1,550 |
| Pasadena |
$52,000 |
$220,000 |
$1,100 |
Dallas-Fort Worth
| Area |
Median Income |
Median Home Price |
Median Rent (2BR) |
| Dallas (city) |
$60,000 |
$330,000 |
$1,450 |
| Fort Worth |
$62,000 |
$310,000 |
$1,350 |
| Plano |
$105,000 |
$450,000 |
$1,700 |
| Frisco |
$135,000 |
$520,000 |
$1,900 |
| McKinney |
$100,000 |
$410,000 |
$1,600 |
| Arlington |
$62,000 |
$280,000 |
$1,250 |
Austin
| Area |
Median Income |
Median Home Price |
Median Rent (2BR) |
| Austin (city) |
$82,000 |
$450,000 |
$1,650 |
| Round Rock |
$92,000 |
$400,000 |
$1,550 |
| Cedar Park |
$105,000 |
$460,000 |
$1,650 |
| San Marcos |
$45,000 |
$290,000 |
$1,200 |
San Antonio
| Area |
Median Income |
Median Home Price |
Median Rent (2BR) |
| San Antonio |
$58,000 |
$275,000 |
$1,200 |
| New Braunfels |
$72,000 |
$340,000 |
$1,350 |
| Boerne |
$90,000 |
$420,000 |
$1,550 |
Other Cities
| City |
Median Income |
Median Home Price |
Median Rent (2BR) |
| El Paso |
$52,000 |
$220,000 |
$950 |
| Corpus Christi |
$55,000 |
$240,000 |
$1,050 |
| Lubbock |
$55,000 |
$225,000 |
$1,000 |
| Midland/Odessa (oil) |
$85,000 |
$300,000 |
$1,200 |
The Property Tax Reality
Texas’s “no income tax” advantage is partially offset by high property taxes:
Property Tax by County
| County/Area |
Effective Rate |
Tax on $400K Home |
| Harris (Houston) |
1.82% |
$7,280 |
| Dallas |
1.70% |
$6,800 |
| Travis (Austin) |
1.48% |
$5,920 |
| Bexar (San Antonio) |
1.55% |
$6,200 |
| Collin (Plano/Frisco) |
1.65% |
$6,600 |
| Fort Bend (Sugar Land) |
1.88% |
$7,520 |
No Income Tax: Real Savings by Income
| Gross Income |
TX Tax Saved vs. CA |
TX Tax Saved vs. NY |
TX Property Tax on $400K Home |
Net Savings vs. CA |
| $75,000 |
$4,900 |
$3,750 |
$6,400 |
-$1,500 (CA wins) |
| $100,000 |
$7,200 |
$5,400 |
$6,400 |
+$800 |
| $150,000 |
$12,500 |
$8,900 |
$6,400 |
+$6,100 |
| $200,000 |
$18,100 |
$12,600 |
$6,400 |
+$11,700 |
| $300,000 |
$29,500 |
$21,000 |
$6,400 |
+$23,100 |
Key insight: Texas’s no-income-tax advantage is minimal below $100K if you own a home. The real savings kick in for higher earners.
Austin: The Affordability Erosion
| Year |
Austin Median Home Price |
Growth |
| 2015 |
$220,000 |
— |
| 2019 |
$310,000 |
+41% |
| 2021 (peak) |
$500,000 |
+61% |
| 2024 |
$450,000 |
-10% from peak |
| 2015→2024 |
— |
+105% |
Texas Cost-of-Living Comparison
| Metro |
COL Index |
Median Home Price |
Affordability Rating |
| San Antonio |
87 |
$275,000 |
Very affordable |
| El Paso |
85 |
$220,000 |
Very affordable |
| Houston |
91 |
$290,000 |
Affordable |
| Dallas-Fort Worth |
93 |
$320,000 |
Affordable |
| Austin |
103 |
$450,000 |
Average (no longer cheap) |
| Frisco/Plano |
108 |
$480,000 |
Above average |
Texas Pros and Cons
| Financial Pros |
Financial Cons |
| No state income tax |
6th highest property taxes in US |
| Below-average COL (especially SA, El Paso, Houston) |
Austin no longer affordable |
| Massive and diverse job market |
Summer heat means high utility bills ($250-$400+/mo) |
| Strong population and job growth |
Homeowner’s insurance rising (storms, hail) |
| No corporate income tax (business-friendly) |
Flood risk (Houston especially) |
| Multiple major metros to choose from |
Limited public transit in most cities |
Related: Cost of Living by State | States with No Income Tax | Property Tax by State | Average Rent by State
