What Is the Median Income in Texas?

Income is a key economic indicator, reflecting the financial well-being of individuals and households within a region. It provides a snapshot of the economic landscape, showing wealth distribution and purchasing power. This data is essential for understanding consumer behavior and informing policy decisions at state and local levels.

Understanding Median Income

Median income represents the middle point in an income distribution, with half of incomes above and half below this figure. This statistical measure differs from the mean, or average, income, calculated by summing all incomes and dividing by the number of earners. The median is considered a more representative measure of typical income because it is less affected by extreme outliers, such as a few very high or very low incomes. For instance, wealthy individuals would inflate the mean, but have little impact on the median. Therefore, median income provides a clearer picture of the financial situation for the majority of the population.

Overall Median Income in Texas

The U.S. Census Bureau reported the median household income in Texas as $76,292 for 2023. This figure encompasses the total money received by everyone aged 15 and over within a household, including wages, pensions, investments, and public assistance. The data for these estimates are primarily derived from the American Community Survey (ACS).

Variations in Texas Median Income

Median income in Texas exhibits variations across different categories, reflecting the state’s diverse economic landscape. Distinctions exist between household, individual, and family income metrics, each providing a unique perspective. For example, while the median household income in Texas was $76,292 in 2023, the median income for single-person households was $41,698. The median family income, which considers groups of two or more related people residing together, was $91,752. Per capita income, which includes all individuals, even children, stood at $39,446.

Geographic location plays a significant role in income disparities across Texas. Major metropolitan areas and counties often report higher median incomes compared to rural areas. In 2023, Rockwall County ($124,917), Collin County ($117,588), and Fort Bend County ($113,409) had some of the highest median household incomes. Cities like Flower Mound ($147,490), Frisco ($141,129), and The Woodlands ($140,794) also show higher incomes. Conversely, cities like Laredo and McAllen-Edinburg-Mission exhibit lower median incomes, reflecting regional economic differences and varying costs of living.

Income levels in Texas relate to demographic factors like age and educational attainment. Householders aged 45 to 64 have the highest median household income at $91,649, reflecting peak earning years. Those aged 25 to 44 follow with $82,249, while householders under 25 and those 65 and over have lower median incomes, at $41,078 and $55,974 respectively. Higher educational attainment correlates with greater earning potential. Occupations requiring a bachelor’s degree, for instance, tend to have higher annual earnings than those requiring less postsecondary education.

Sources and Nuances of Income Data

Median income data primarily originates from federal statistical agencies, with the U.S. Census Bureau as a leading source. The American Community Survey (ACS) and Current Population Survey (CPS) collect detailed demographic, social, economic, and housing information from households nationwide, including Texas. The Census Bureau releases income and poverty data reports annually, with ACS 1-year estimates providing recent figures each fall. While the Bureau of Labor Statistics (BLS) provides wage and employment data, the Census Bureau is the primary source for comprehensive median income statistics. Income data represents a snapshot in time and may not fully account for cost of living differences across areas, and definitions of household or family can also influence reported figures.