Is $100,000 a Good Salary in Texas?

A $100,000 salary in Texas is often perceived as a strong income, yet its actual purchasing power varies significantly based on individual circumstances and location within the state. What constitutes a “good” salary is subjective, influenced by household size, lifestyle choices, and specific region. This analysis will explore how key living expenses, geographical variations, income comparisons, typical budgeting strategies, and Texas’s unique tax structure collectively define the value of a $100,000 annual income.

Understanding Key Living Expenses

The cost of living in Texas is generally lower than the national average, estimated to be about 7% less overall. For a single individual, the average monthly cost of living is approximately $3,700, encompassing various essential expenditures. Housing costs represent a significant portion, with the median rent for all property types across the state reported at around $1,872 as of June 2024. The average home value in Texas stood at $306,756 in June 2024, influencing potential mortgage payments.

Utility expenses also impact a household budget. The average monthly utility bill in Texas is about $402, though this can fluctuate based on usage and regional rates. Electricity bills, for example, averaged $170.63 per month in 2025, reflecting higher consumption during extreme weather conditions. Transportation costs are a notable consideration, with annual expenditures ranging from $5,477 to $15,530 depending on household composition and travel needs. Auto insurance premiums average around $1,343.03 annually.

Groceries and food costs vary throughout the state, but a typical Texan spends approximately $289 per month on non-restaurant food items. Healthcare is another substantial expense, as Texas has some of the highest healthcare costs nationwide. Individual health insurance premiums average about $500 monthly.

How Location Affects Value

The effective value of a $100,000 salary in Texas is profoundly shaped by geographical location, as living costs differ considerably across the state. Major metropolitan areas, such as Austin, Dallas, and Houston, typically present higher expenses compared to mid-sized cities or smaller towns. For instance, the average home value in Austin was $548,654 in June 2024, significantly higher than Houston’s $271,476 or San Antonio’s $261,501. Rent prices also demonstrate this disparity, with Austin reporting higher median rents for one-bedroom apartments compared to Dallas, Houston, or San Antonio.

Housing affordability, in particular, varies dramatically, influencing overall budgeting for residents. While the cost of living in some areas like Southlake can be 72% higher than the national average, other regions, such as Harlingen, offer more affordable living options. Property values and associated property tax bills are generally lower in rural areas or smaller counties compared to dense urban centers.

Comparing Your Income

A $100,000 salary in Texas places an individual well above the state’s median household income. The American Community Survey indicates a median household income of $76,292 in 2023, adjusted for inflation. This means a $100,000 income is roughly 30% higher than the median for all households in the state.

When compared to the average salary across all occupations and industries in Texas, which was $61,240 as of May 2023, a $100,000 salary also stands out significantly. This income level indicates a competitive earning position within the state’s economic landscape.

Budgeting and Financial Allocation

For an individual earning a $100,000 gross salary in Texas, a significant portion of income will be allocated to federal taxes and other mandatory deductions. Federal income tax for a single filer at this income level would be approximately $17,053 annually, based on 2024 tax brackets. Additionally, FICA taxes, covering Social Security and Medicare, would amount to about $7,650 per year. These deductions reduce the gross annual income to an estimated net income of approximately $75,297, or about $6,275 per month.

From this monthly net income, a hypothetical allocation might involve prioritizing housing, which could consume between 25% to 35% depending on location and type. Transportation costs might account for 8% to 15% of the budget, while groceries and food could range from 5% to 10%. Healthcare expenses, including insurance premiums and potential out-of-pocket costs, might represent 5% to 10% of the monthly budget. The remaining funds could then be distributed among savings, debt repayment, and discretionary spending, allowing for a comfortable lifestyle with careful financial management.

Texas Tax Considerations

Texas offers a distinct tax environment that directly impacts the disposable income of its residents, notably the absence of a state individual income tax. This unique feature allows individuals to retain a larger portion of their gross earnings compared to states that levy an income tax. The state primarily generates revenue through other channels, including sales and property taxes.

While the lack of state income tax is advantageous, Texas has one of the highest property tax rates in the nation, averaging around 1.8% of a property’s assessed value. This rate can vary significantly depending on the specific county, city, and school district where a property is located. For homeowners, these property taxes represent a substantial annual expense. In addition to property taxes, Texas imposes a state sales tax of 6.25% on most retail sales, leases, and rentals of goods and services. Local jurisdictions can add up to an additional 2%, resulting in a combined sales tax rate that can reach up to 8.25% in some areas.