State profile
Texas Cost of Living Comparison
Texas's 2024 price level is 97.057, 2.94% below the national level; it has no individual income tax, but owners pay a median $4,232 a year in property taxes, rank 12 of 51.
Updated
97.057Texas all-items price level, U.S. = 100 · rank 27 of 51, lowest first
| Measure | Texas | Maine | First − second |
|---|---|---|---|
| All-items price level | 97.057 | 97.050 | +0.007 points |
| Rent price level | 96.503 | 78.940 | +17.563 points |
| Home value | $283,800±$738 | $296,600±$2,876 | −$12,800 |
| Two-bedroom gross rent | $1,395±$5 | $1,224±$17 | +$171 |
| Household income | $78,476±$263 | $74,733±$795 | +$3,743 |
| Real estate taxes paid | $4,232±$19 | $3,036±$26 | +$1,196 |
$4,000 of monthly spending in Texas scales to $4,000 in Maine at the 2024 all-items price ratio.
BEA 2024 and ACS 2020–2024; ± marks the Census 90% margin. How to read a gap
Texas: no income tax, substantial property tax, dearer than every neighbour
The tax trade-off defines Texas. The state constitution bars a tax on individuals' net incomes, and Census records no state individual income, corporate income or property tax. General sales supplied 62.8% of fiscal 2025 state collections and other selective sales 19.5%; total collections were $2,836 per resident, rank 48. The state sales tax is 6.25%, and cities, counties, special districts and transit authorities can add up to 2%. Local governments fund themselves heavily through property tax: the median owner pays $4,232 a year and owners with a mortgage report median monthly costs of $2,106, rank 16.
Prices are close to average in every category. Rents (96.503) and goods (98.083) are just under the U.S. level, other services (97.081) rank 13th-lowest and utilities (87.512) 21st. The two-bedroom gross-rent median is $1,395, rank 21, and renters spend 30.9% of income on gross rent, rank 12.
Texas has grown relatively cheaper every year since 2020, from 98.759 to 97.057, a decline of 1.702 points.
The median household income of $78,476 ranks 22nd, and real per capita personal income, adjusted for prices, is $58,219, rank 27. The median home value is $283,800, rank 30.
Every neighbour is cheaper. Oklahoma (87.843), Arkansas (86.937), Louisiana (88.207) and New Mexico (92.212) all have lower price levels, and their two-bedroom medians run from $907 to $1,062. Maine (97.050) has almost exactly Texas's price level. The Texas vs Florida and Texas vs Oklahoma pages cover the homestead and cross-border rules.
Category price levels in Texas
| Category | Parity | Rank, low first | vs U.S. |
|---|---|---|---|
| All items | 97.057 | 27 | 2.94% below |
| Goods | 98.083 | 34 | 1.92% below |
| Housing (rents) | 96.503 | 32 | 3.50% below |
| Utilities | 87.512 | 21 | 12.49% below |
| Other services | 97.081 | 13 | 2.92% below |
| Real income per person, 2017 $ | $58,219 | 27 | U.S. $59,195 |
All items by year: 2020 98.759 · 2021 98.402 · 2022 97.411 · 2023 97.140 · 2024 97.057 (−1.702 since 2020). How to read categories and trends
Monthly housing costs
- Owners with a mortgage
- $2,106±$6 · rank 16, high first
- Owners without a mortgage
- $678±$2 · rank 17
- Renters: gross rent / income
- 30.9%±0.2 · rank 12
Texas state tax collections, FY2025
$89.94 billion in total, $2,836 per resident. Scope of these figures
| Tax | FY2025 | Share | Per resident |
|---|---|---|---|
| Individual income | not levied | ||
| General sales | $56.50 billion | 62.8% | $1,782 |
| Property | not levied | ||
| Motor fuel | $3.92 billion | 4.4% | $124 |
| Other selective sales | $17.51 billion | 19.5% | $552 |
| Corporate income | not levied | ||
| Licenses | $4.02 billion | 4.5% | $127 |
| Severance | $8.00 billion | 8.9% | $252 |
| Other taxes | not levied | ||
Texas income tax on wages
Texas has no individual income tax. Article VIII, Section 24-a of the Texas Constitution, added in November 2019, bars the legislature from taxing the net incomes of individuals, including an individual's share of partnership income, and Section 24-b bars a tax on an individual's capital gains.
Read : Texas Constitution, Article VIII. Price parities exclude income taxes.
Texas sales tax
Texas imposes a 6.25% state sales and use tax on retail sales, leases and rentals of most goods and on taxable services. Cities, counties, special purpose districts and transit authorities can add up to 2% in local sales tax.
Read : Texas Comptroller of Public Accounts: sales and use tax.
Texas beside its neighbours
| Jurisdiction | All items | Rents | Goods | 2BR rent |
|---|---|---|---|---|
| Texas | 97.057 | 96.503 | 98.083 | $1,395 |
| Arkansas | 86.937 | 58.203 | 93.597 | $907 |
| Louisiana | 88.207 | 63.104 | 93.700 | $1,055 |
| New Mexico | 92.212 | 73.611 | 96.144 | $1,062 |
| Oklahoma | 87.843 | 62.763 | 93.778 | $993 |
Before you budget a move
A Texas ownership comparison needs a real property-tax and insurance quote before calling one destination cheaper. The statewide historical median taxes paid is not a statutory rate, and its owner-occupied population need not match the household’s planned purchase. The budget requires the parcel’s assessment and approved exemptions.
For Dallas–Fort Worth, Houston-area, Austin-area or another Texas destination, compare compensation with actual housing and transport costs. Ordinary individual state income tax is only one category. A price-parity ratio cannot resolve a selected lease, commute, employer health plan or first-year relocation expense.
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