Is $60,000 a Year a Good Salary in Texas?

A $60,000 annual salary in Texas is a common inquiry for those considering relocation or evaluating their financial standing. Texas has a varied economic landscape, influenced by its large area and diverse population centers. Understanding this income’s purchasing power requires examining various financial factors, from daily expenses to the state’s tax structure.

Understanding the Cost of Living in Texas

Understanding a $60,000 annual salary in Texas begins with understanding daily expenses. Housing costs are a significant component, varying considerably across the state. In 2024, the median rent for all property types across Texas was around $1,276 per month. For those considering homeownership, the average home value in 2024 was approximately $306,756, though this fluctuates by city or region.

Home insurance in Texas averages $2,919 to $5,989 annually, higher than the national average due to weather events. Property taxes are also a notable expense for homeowners, often higher than the national average despite no state income tax.

Utilities are a substantial monthly expenditure. The average utility bill in Texas, including electricity, water, gas, internet, and trash, ranges from $283 to $362 per month, depending on the city. Electricity costs average $170.63 per month for residential users. Transportation expenses are another consideration, with full-coverage car insurance averaging $2,700 to $2,718 per year in 2024.

Food costs, including groceries and dining out, impact a budget. Estimates suggest around $289.25 per person per month for groceries. Dining out adds to this, with an inexpensive restaurant meal costing around $20. Healthcare expenses vary based on insurance coverage and individual health needs. Miscellaneous expenses for entertainment, personal care, and clothing should also be factored into a budget.

The Impact of No State Income Tax

Texas has no state income tax, directly affecting the take-home pay for a $60,000 annual salary. This means a Texan earning $60,000 does not have state income tax deducted from their gross income, unlike residents in many other U.S. states. This can result in a higher net income and greater disposable funds compared to an equivalent gross salary in a state with income tax.

Despite this advantage, federal taxes still apply to all income earners in Texas. Federal income tax, Social Security, and Medicare taxes are withheld from wages. For 2024, the combined Social Security and Medicare tax rate is 7.65% for employees. While the absence of state income tax benefits Texans, this advantage can be offset by higher property taxes, a significant revenue source for local governments in Texas.

Comparing $60,000 to Average Incomes

To contextualize a $60,000 annual income, compare it against Texas’s broader income landscape. The median household income in Texas was around $76,292 in 2023, slightly lower than the national median. For an individual, a $60,000 salary is below the median household income, suggesting it might be challenging for a single earner to support a household without careful budgeting.

The average individual income in Texas can fluctuate based on various data sources and methodologies. However, a $60,000 salary generally positions an individual within a reasonable income bracket, though perhaps not significantly above average for all workers. Factors such as the specific industry, years of professional experience, and educational background significantly influence individual income levels. Certain specialized fields or roles may command higher salaries, while entry-level positions might fall below this mark.

How Location Affects Spending Power

The value of a $60,000 salary in Texas is profoundly shaped by the specific geographic location within the state. Major metropolitan areas such as Austin, Dallas, and Houston typically present a higher cost of living, particularly concerning housing. For instance, in August 2025, the average rent for a one-bedroom apartment was approximately $1,440 in Austin, $1,416 in Dallas, and $1,197 in Houston. These figures illustrate that a significant portion of a $60,000 income would be allocated to housing in these urban centers.

In contrast, mid-sized cities and suburban areas often offer a more comfortable lifestyle on the same income due to lower expenses. Cities like San Antonio, for example, had an average one-bedroom rent of about $1,101 per month in August 2025, which is notably lower than Austin or Dallas. Suburban communities surrounding major metros can also provide a balance, offering proximity to urban opportunities with reduced housing costs. Commuting expenses, however, might increase in these scenarios.

Rural areas across Texas generally provide the most financial comfort for a $60,000 salary, owing to significantly lower housing and, at times, transportation costs. While specific data for rural rent averages less than major cities, the cost of living index in these regions is typically much lower. This allows for greater discretionary income and potentially a higher quality of life, although access to certain amenities or job opportunities might be more limited. The stark differences in housing, utilities, and transportation costs between these diverse regions underscore the importance of location in determining the effective spending power of a $60,000 income in Texas.