What Is a Good Yearly Salary in Texas?

A good yearly salary in Texas is a subjective concept, shaped by individual circumstances, location, and personal financial aspirations. What one person considers sufficient, another might find restrictive. This article provides data and context to help individuals understand the financial landscape and determine what a “good” salary means for their unique situation.

Statewide Salary Landscape in Texas

Texas presents a dynamic economic environment. The median household income in Texas was approximately $79,060 in 2023. This figure represents the midpoint, meaning half of all households earned more and half earned less. For comparison, the median household income in Texas tends to be slightly lower than the national median.

The distinction between median and average income is important; the median identifies the middle value, while the average can be skewed by extremely high earners. Texas’s economy is driven by diverse sectors, including energy, technology, and manufacturing. The state’s consistent economic growth is supported by a pro-growth regulatory climate, a large workforce, and a strategic location facilitating global trade. Notably, Texas does not levy a state income tax, which can impact take-home pay compared to states that do.

Cost of Living Across Texas Regions

The cost of living varies significantly across Texas, impacting the salary needed to maintain a desired lifestyle. Housing costs represent a substantial portion of expenses, with major metropolitan areas exhibiting diverse price points. For instance, average rent can range from approximately $1,700 in San Antonio to $1,945 in Houston, $2,000 in Dallas, and $2,050 in Austin. Property taxes for homeowners can be higher than in some other states, typically ranging from 1.5% to 2.5% of the home’s value, funding local services like schools.

Utility expenses fluctuate based on location and usage. The average monthly utility bill in Texas ranges from approximately $377 to $460, encompassing electricity, natural gas, water, and trash services. Electricity costs can be particularly high during warmer months due to air conditioning usage. Groceries are a variable expense, with a single person spending around $280 to $289 per month, and a family of four averaging about $200 per week.

Transportation costs, while often lower than the national average due to Texas’s oil reserves and lower gas prices, remain a notable expense given the state’s vastness and reliance on personal vehicles. Annual transportation costs for a single adult can be around $5,477, increasing for families. Healthcare expenses in Texas are generally higher than the national average, with individual monthly insurance premiums averaging about $500 and family premiums around $1,200. These varying costs mean that a salary considered good in one region of Texas might not afford the same quality of life in another.

Influential Factors on Earning Potential

An individual’s earning potential in Texas is shaped by several interconnected factors. The industry in which one works plays a substantial role, with sectors such as energy, information technology, and advanced manufacturing often offering higher compensation due to demand for specialized skills. Texas has a significant presence in these industries, attracting major companies and fostering a competitive job market. Conversely, service-oriented industries may have different salary structures.

Education level directly impacts earning potential, with higher degrees and specialized certifications generally correlating with increased income. Possessing a bachelor’s degree, master’s degree, or professional certifications can open doors to roles requiring advanced knowledge and commanding higher salaries. Specialized skills, particularly in emerging technologies or high-demand fields, further enhance an individual’s market value. Years of experience and career progression also contribute significantly to salary growth. As professionals gain expertise and take on greater responsibilities, their compensation typically increases, reflecting their accumulated knowledge and contributions.

Evaluating Your Personal Salary Needs

Determining a “good” salary ultimately requires a detailed personal assessment, integrating statewide data with individual financial goals and lifestyle choices. Begin by outlining your personal financial objectives, such as savings targets, debt repayment plans, and retirement contributions. Consider your desired lifestyle, including housing preferences, transportation needs, and discretionary spending. Family size and any associated costs, such as childcare or healthcare, also play a significant role in calculating necessary income.

Creating a comprehensive personal budget is a practical step, incorporating the cost of living data relevant to your specific Texas region. This budget should account for housing, utilities, groceries, transportation, healthcare, and other regular expenses. Understanding your total monthly and annual expenditures allows you to identify the salary needed to cover these costs comfortably. Finally, align your career aspirations and earning potential, considering the influential factors discussed previously, with your calculated personal financial needs. This strategic alignment ensures that your professional trajectory supports your desired financial well-being within the diverse economic landscape of Texas.