How Much Is the Cost of Living in Texas?

The cost of living in Texas can vary considerably, reflecting the state’s immense size and diverse economic landscapes. Texas generally offers a more affordable lifestyle compared to some other states, though specific costs are influenced by location and individual choices.

Overall Financial Picture

Texas typically presents a more affordable financial picture compared to the national average. The cost of living in Texas is approximately 7.11% lower than the national average. A significant financial aspect is the absence of a state individual income tax.

However, other taxes contribute to the overall financial landscape, including a state sales tax rate of 6.25%, which can reach up to 8.25% when combined with local sales taxes. Property taxes also represent a notable expense, with an effective rate of about 1.47% on owner-occupied housing value. Overall, the average total personal consumption for a Texan is around $45,114 per year, or approximately $3,760 per month.

Major Household Expenses

Housing stands as the largest component of household spending in Texas, with costs influenced by whether one rents or owns. As of August 2025, a one-bedroom apartment in Texas averages around $1,258 monthly, while a two-bedroom apartment typically costs about $1,562 per month. For those considering homeownership, property taxes are a significant factor.

Utility costs add to the monthly household budget, with averages varying based on usage and location. The combined average for utilities in Texas ranges from approximately $377 to $460 per month.

Electricity bills average between $165 and $213 monthly. Natural gas expenses typically fall between $55 and $111 per month. Water bills average around $44 per month. Internet services generally cost between $50 and $114 monthly.

Transportation and Daily Necessities

Transportation expenses are a significant part of the cost of living, given the state’s vast distances and reliance on personal vehicles. Annual transportation costs for a single adult in Texas can range from approximately $5,477 to $15,530. Car insurance premiums reflect this reliance, with full coverage averaging between $2,600 and $3,508 per year, or about $217 to $292 monthly. Minimum coverage policies typically cost between $746 and $1,493 annually. These rates can vary based on factors such as driving history, vehicle type, and specific location within the state.

Daily necessities, particularly food, also contribute to regular expenditures. A single person in Texas can expect to spend around $280 to $289 per month on groceries. For a family of four, weekly grocery expenses average about $200. While these figures represent averages for sustenance at home, costs for dining out and other food-related services add to the overall food budget.

Healthcare and Personal Spending

Healthcare costs represent another important consideration for Texans, with expenses varying based on coverage and individual needs. The average annual healthcare cost per person in Texas is approximately $6,593. Health insurance premiums for individuals typically range from $461 to $610 per month, or about $5,532 to $7,320 annually. For families, annual premiums can range from approximately $22,392 to $25,294. Deductibles for individual plans often fall between $2,000 and $4,000, with out-of-pocket maximums around $8,000.

Texas faces some of the higher healthcare costs nationally. Beyond essential services, personal spending categories like personal care items, clothing, and entertainment are highly variable. These expenses are largely determined by individual lifestyle choices and discretionary income. While specific average figures for these categories were not available, they form a flexible part of the budget that individuals can adjust.

Cost Differences Across Texas Regions

The sheer size of Texas means that the cost of living can differ significantly across its various regions. Major metropolitan areas typically have higher expenses, particularly for housing, compared to smaller cities or rural communities. For instance, Austin tends to have higher housing costs, with average one-bedroom rents around $1,457 and two-bedroom rents at $1,774. Dallas also presents higher figures, with one-bedroom apartments averaging $1,201 and two-bedroom units at $1,436.

In contrast, Houston offers slightly more affordable rental options, with one-bedroom units averaging $1,203 and two-bedroom units at $1,513. San Antonio generally has lower housing costs than Austin or Dallas, with one-bedroom apartments averaging $1,052 and two-bedroom units around $1,300. Rural areas often provide even lower housing costs, though they may come with higher transportation expenses due to increased driving distances and limited public transit. Utility costs can also vary, with cities like El Paso reporting lower average utility bills. These regional differences highlight the importance of researching specific locations when evaluating the cost of living in Texas.