What Is a Good Salary in Austin, Texas?

A “good” salary is subjective, influenced by individual circumstances and location-specific economic factors. In Austin, Texas, understanding what constitutes a sufficient income is particularly relevant due to its dynamic economic environment. The city’s rapid development and increasing popularity directly impact financial considerations for residents.

Understanding Austin’s Cost of Living

The cost of living in Austin directly impacts how far income stretches. Housing expenses are the largest component, with median home prices typically ranging from $550,000 to $570,000. Average monthly rent for an apartment can be around $1,440, with a two-bedroom unit averaging around $2,160. One-bedroom units in downtown Austin average about $2,200, while similar accommodations outside downtown are around $1,800 per month.

Transportation costs also contribute, even with public transportation available through Capital Metro. A monthly public transit pass can be around $33.25. For car owners, the average cost of gas is approximately $4.20 per gallon, and annual car insurance averages about $2,471 for full coverage.

Utility expenses average around $150 to $170 per month for electricity, water, trash pickup, and gas. This is generally comparable to or slightly below the national average. Electricity costs can increase significantly during summer months due to air conditioning use. Internet service typically ranges from $50 to $100 monthly.

For groceries, a single person might spend between $260 and $350 per month. Dining out adds to the food budget, with an inexpensive meal averaging around $21 and a three-course dinner for two at a mid-range restaurant potentially costing $100. Healthcare costs in Austin are generally higher than the national average.

Austin’s Income Benchmarks

Objective income data provides a baseline for earning potential in Austin. The median household income was $91,461 as of 2023, and the average annual household income was $130,163. For individuals, the median salary is around $65,250. Austin’s median household income is approximately 116.45% of the U.S. median household income.

Income distribution varies across age groups. Householders aged 25 to 44 tend to have the highest median household income at about $101,589, followed by those aged 45 to 64 at $100,550. A middle-class household in Austin in 2024 would need to earn between $59,604 and $178,830 annually, with the median middle-class household income being $89,415.

Key industries in Austin, including technology, healthcare, education, and government, offer varying salary ranges. The average wage across all industries is around $33 to $34 per hour. Texas does not levy a state income tax, which can mean more disposable income for residents. However, this is balanced by higher property and sales taxes.

Personal Factors Shaping a “Good” Salary

Individual lifestyle choices significantly influence what a person considers a “good” salary. A desired lifestyle that includes frequent dining out, regular travel, or luxury purchases will necessitate a higher income to maintain. Conversely, a more frugal approach to spending can make a lower income feel more adequate, as financial comfort is deeply rooted in personal spending habits and aspirations.

Household composition also plays a substantial role in determining salary adequacy. A single individual typically requires less income to cover expenses than a couple or a family with children. Each additional dependent increases the financial obligations for housing, food, healthcare, and other necessities, necessitating a higher household income to achieve comparable financial stability.

Existing debt and ongoing financial obligations, such as student loans, credit card balances, or car payments, directly impact an individual’s net disposable income. A salary that might be comfortable for someone without debt could feel insufficient for someone managing significant loan repayments, as these commitments reduce the amount of money available for discretionary spending or savings.

Personal financial goals, including saving for retirement, accumulating a down payment for a home, or investing for future wealth accumulation, also shape salary needs. Individuals with ambitious savings targets will require a higher income to meet both their daily expenses and long-term financial objectives, making these goals a significant driver of perceived sufficient earning levels.

Commute preferences and the desire to live in specific neighborhoods can also influence salary requirements. Living closer to work or in a highly sought-after area often means higher housing costs, which in turn demands a larger income. Balancing the convenience of a short commute or the appeal of a particular locale with its associated expenses is a common financial consideration.

Austin’s Economic Landscape

Austin’s economy is characterized by dominant industries that contribute significantly to its job market. The technology sector, known as “Silicon Hills,” is prominent, alongside healthcare, education, and government.

The city has experienced consistent job market growth, indicating a healthy demand for labor that positively influences salary potential and job security. Austin ranked as the 5th fastest-growing major metro for job growth in 2024, adding 28,500 jobs with a growth rate of 2.1%. Strongest job gains have been observed in education and health services, financial activities, and construction.

The job market in Austin is competitive, attracting a diverse talent pool due to economic opportunities and quality of life. This competition can affect salary negotiations, as employers may have a larger selection of qualified candidates. Despite this, Austin’s unemployment rate of 3.5% in February 2025 remained below the national average.