Texas continues to be one of the top states people choose when relocating. A robust economy, plentiful job opportunities, and fair wages entice newcomers. With an affordable cost of living, Texas attracts both businesses and residents. Housing prices in The Lone Star State are reasonable for renters and homeowners. Texas is known for its friendliness and diverse culture. There’s something for everyone with plenty to do and warm weather year-round. 

As the second-largest state in the U.S. in size and population, you have numerous options for your move. The cost of living in Texas varies depending on the city you choose for your relocation. Some areas are higher or lower than the national average. One factor that makes the cost of living in Texas more affordable is its lack of state income tax. Some residents and companies find this financial benefit appealing enough to make the move. 

Are you looking for a new state for your next home? Here’s the average cost of living in Texas.




Texas has no state income tax, which is a primary draw for many businesses. Employees also benefit by not seeing this deduction in their paycheck. Texas is one of eight states in the country that doesn’t require this tax.

With an affordable cost of living, Texas collects property taxes locally. Homeowners pay the schools, cities, and counties where they reside. Property taxes are based on the value of your home, so they vary. Overall, Texas has higher tax rates, but some areas offer exemptions.

The sales tax is 6.25% on many products you buy, which is an average rate. In addition, local municipalities may also charge a sales tax. The maximum is an extra 2% depending on the city where you’re making a purchase.

The state is retirement-friendly and doesn’t tax pensions. The cost of living in Texas makes it a great place to spend your golden years. Individuals 65 years and older are even eligible for property tax exemptions. Also, Texas has no estate taxes if you have money saved for an inheritance.



Housing is the first thing people research when they want to know the cost of living in Texas. Luckily, you can find more affordable homes than the national average in the state. Housing costs depend on the area you choose and whether you rent or own. If you have dreams of owning a home, you can find the perfect place in Texas. You can also get reasonable rates on apartments. 

Since many people have decided to move to the state, housing costs are rising. According to the Texas Real Estate Center at Texas A&M, “The Texas median home price rose for the 11th consecutive month, appreciating 1.7% on a monthly basis and 17.2 percent YOY to a record-breaking $319,112.”

With the exception of Austin, home prices are steadily increasing in all major cities in Texas. Despite the state’s growing popularity, the city’s housing costs declined. Austin, Texas, saw a dip of 35.1% for the first time after seeing spikes in years prior.

You can find more affordable deals and lower costs of living in rural areas of Texas. If you’re not looking to buy or you’re on a budget, consider renting. Apartment prices are reasonable in Texas compared to other states. The average rent for a one-bedroom is $685 and for two bedrooms is $831. 


Utilities cost of living in texas

Texas has very hot summers, which raise electricity bills during summer months. Some homes or apartments may offer central air conditioning. Complete HVAC systems often use natural gas instead of a window unit. 

Accounting for different cooling systems, the U.S. average cost for electricity is $117. In Texas, you can expect to pay around $140 a month. 

The cost of water in Texas is much lower than the national average, however. Yearly, the bill is about $290 compared to $340 nationwide. 

A gas bill in Texas is about $110 a month, making the state the twelfth-lowest in the nation. Utility costs vary depending on where you live. Some cities like Austin have regulated markets where there’s only one provider. 

Cable TV costs around $85 and internet bills average $60 a month in Texas. You can search areas in the state to see the local utility rates. Like other factors, where you move determines the cost of living in Texas. 



Unless you move to a big city, you’ll need a car to get around. If you already own a vehicle, you can move it to Texas and easily transfer the registration through the DMV. Car insurance in Texas is higher than in most states, so you’ll want to call your company for rates.

If you plan on buying a new car once you get to Texas, the average cost is around $27,562. You can score good deals on vehicles in Austin or San Antonio. In El Paso, Texas, you’ll pay much higher prices. The city is the sixth most expensive place to buy a used car in the country.

Texas imposes a gas tax of 20 cents per gallon if you plan on driving after you move there. You can use public transportation in larger cities to save on costs. Gas prices in Texas are typically around $3.35–$3.50 per gallon. (At the time of this article, it costs $4.01–$4.32 per gallon due to a spike in inflation.)

With gas prices increasing across the country, you can save money by using public transit. The Dallas area, for example, has a public transportation network that can lower your cost of living in Texas and remove the need for a car. 

DFW has traffic rated the seventh-worst traffic in the country, and Houston comes in at third on the list. These results come from a study by Texas A&M that looked at congestion in major cities across the U.S.

Here are the rates to get around Dallas using a DART pass for buses and trains.

  • Day passes: local $6.00 regional $12.00
  • AM/PM passes: local $3.00 reduced $1.50
  • Midday: local $2.00
  • Single ride: $2.50
  • Monthly: local $96.00 regional $192.00


Consider Moving to Texas

According to movers in Plano Tx, the cost of living in Texas is reasonable, and why so many people are moving here. The state is an excellent choice for businesses and individuals. Texas is also family-friendly, with good schools and activities for kids. You can rent an apartment, buy a home, or build on new property.

If you’re considering moving to Texas, here’s how to calculate moving costs.

One of the main reasons companies and people relocate here is the lack of state income tax. There are many great places to live, and you can find the city or town that suits you. Texas’ cost of living is more affordable than most people think. The state is large in size, and you’ll be able to find a place within your budget.

Utility and transportation costs in Texas vary based on where you move. Compared to other states, the prices are about average. You can save on gas and avoid traffic by utilizing public transit in major cities like Dallas.

After reviewing the cost of living in Texas, you may consider moving to the Lone Star State. Before you relocate, determine how much you’ll pay to hire professionals. Finding a reliable moving company makes things less stressful. Professionals can do the heavy lifting as you plan out your future in the great state of Texas. 


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