What Is a Good Salary for a Single Person in Texas?

A “good salary” for a single person in Texas is highly individualized, shaped by personal circumstances, lifestyle, and location. No single income figure universally defines comfortable living, as expenses and opportunities vary significantly. Understanding factors that influence financial well-being is important for determining an adequate income.

Key Components of the Cost of Living in Texas

The overall cost of living in Texas is lower than the national average, about 7% to 8% less expensive. For a single individual, the average total personal consumption expenditure in Texas was approximately $45,114 per year, or about $3,760 per month, based on 2021 data. This statewide average masks considerable variation, with costs in major metropolitan areas differing substantially from those in smaller towns or rural communities.

Housing

Housing represents the largest portion of living expenses. The average rent for a one-bedroom apartment across Texas is around $1,258 per month. Rents are considerably higher in urban centers like Austin, where median rent can be around $2,300 per month, or Dallas-Fort Worth at $2,000 per month. Conversely, cities such as Amarillo, Killeen, and Lubbock offer more affordable options, with one-bedroom apartments starting around $844 per month.

Transportation

Transportation expenses are another significant component of a single person’s budget. Annual transportation costs for an individual in Texas can range from approximately $5,477. While public transportation is available in some larger cities, most areas in Texas necessitate car ownership. Fuel costs tend to be lower than the national average, which can help mitigate overall transportation spending.

Food

Food costs for a single person in Texas average around $285 per month for groceries. This figure can fluctuate based on dietary choices. Dining at restaurants also adds to the monthly food budget.

Utilities

Utility expenses for a single individual in Texas range from $402 to $424 per month. This covers electricity, natural gas, internet, and water services. Electricity bills can be higher during the hot summer months due to increased air conditioning usage.

Healthcare

Healthcare costs for an individual are estimated at $6,593 annually. Monthly health insurance premiums average around $500, varying from $340 to $680 depending on the plan, age, and health needs. Deductibles can range from $1,000 to over $5,000, with out-of-pocket maximums reaching up to $9,450.

Taxes

Texas does not impose a state income tax on wages. The state sales tax rate is 6.25%, with local jurisdictions adding up to an additional 2%, resulting in a combined sales tax rate that can reach 8.25%. Property taxes are collected by local entities such as counties, cities, and school districts. These taxes are determined by the appraised value of a home and the specific tax rates set by local authorities. The average effective property tax rate in Texas is approximately 1.8% of the assessed property value, which can be higher than the national average.

Income Levels for Single Individuals in Texas

The median income for single-person households in Texas is $41,698. The average income per person, or per capita income, is $39,446. For full-time workers in Texas, the median annual salary was $56,836.

While these figures represent statewide averages, the income needed for a comfortable lifestyle differs based on individual expectations and location. Analyses suggest a single person without children might need an annual salary of approximately $75,000 to live comfortably. In more expensive urban centers, such as Austin, an individual may require an even higher income, potentially around $100,000 annually, to maintain a comfortable standard of living.

Various factors contribute to an individual’s earning potential within Texas. Educational attainment plays a significant role, with occupations requiring at least a bachelor’s degree yielding higher salaries. Professional experience and the specific job role also influence income levels. The local job market within different Texas cities and regions can further affect salary ranges for similar positions.

Assessing Your Personal Financial Needs

Determining a suitable salary for your situation in Texas involves a personalized assessment of your financial needs and aspirations. Create a detailed personal budget that categorizes your expenses. Fixed expenses, such as rent or mortgage payments, insurance premiums, and loan repayments, remain consistent each month. Variable expenses, including groceries, transportation, utilities, and discretionary spending, fluctuate based on usage and lifestyle choices. Tracking these expenditures provides a clear picture of where your money is going.

Beyond covering monthly expenses, consider your personal financial goals. This includes establishing an emergency fund, holding three to six months’ worth of living expenses. Saving for retirement, whether through employer-sponsored plans or individual retirement accounts, is important. Additionally, setting aside funds for short-term goals, such as a down payment on a home, a new vehicle, or planned travel, helps align your income with your future ambitions.

Your individual lifestyle choices directly influence the salary required to achieve your definition of a good standard of living. Frequent dining out, regular entertainment, luxury purchases, or extensive travel will necessitate a higher income compared to a more frugal approach. Personal preferences regarding housing size, neighborhood amenities, and transportation methods also have a substantial impact on overall costs. For instance, choosing to live in a less expensive area or utilizing public transport where available can reduce the income needed for comfort.

Comparing your current or target income against your personalized budget and financial goals helps assess alignment. If your income falls short of covering your needs and desired savings, adjustments may be necessary, either by increasing income or re-evaluating spending habits. Conversely, an income that comfortably supports your lifestyle and allows for consistent progress toward financial goals indicates a strong financial position.