Quick answer
Texas has 7 major cities with an average 1BR rent of $1,327/month. The cheapest is El Paso at $1,050/mo; the priciest is Austin at $1,650/mo. Texas has no state income tax — on $100K that's roughly $5,000-$9,000/year you keep vs California. The catch: Texas property tax averages 1.6-2.3% annually, among the highest in the US. For renters, it's a pure win. For homeowners, a $450K home costs you $7,200-$10,300/year in property tax.
State Guide · TX
Cost of Living in Texas (2026)
Texas has been the #1 destination for domestic migration since 2016, driven by Austin tech (Tesla, Apple, Google, Dell, Meta, Oracle), Houston energy (ExxonMobil, Shell, Chevron), Dallas-Fort Worth corporate (Toyota NA HQ, AT&T, American Airlines), and San Antonio military/healthcare. Roughly 500,000+ people move to Texas each year — primarily from California, Illinois, and New York.
The state covers enormous geographic and cultural ground: Austin is closer in vibe to Denver or Portland than to Dallas; the Gulf Coast (Houston, Galveston) feels nothing like the Hill Country; West Texas and El Paso are effectively a different state. Weather varies from humid-subtropical (Houston) to semi-arid (Dallas) to desert (El Paso). All of urban Texas gets brutal summers — 95°F+ is common from mid-May through September, with Houston humidity making it feel 10°F hotter.
The political environment has shifted rightward at the state level in the 2020s, which matters for newcomers: abortion is banned after ~6 weeks, gun laws are permissive, and public schools in several districts have become politically charged. Austin, Houston, Dallas, and San Antonio are blue islands within a red state — this creates some tension on local policy but doesn't change day-to-day life much.
Last updated: October 21, 2026
Texas at a Glance
Cities Tracked
7
Avg 1BR Rent
$1,327
Avg Home Price
$379K
Avg Walk Score
45/100
Texas Cities Ranked by Rent
Cheapest to most expensive. Click any city for the full guide.
| City | 1BR Rent | Home Price | Utilities | Walk |
|---|---|---|---|---|
| El Paso | $1,050 | $320K | $145 | 52 |
| San Antonio | $1,180 | $285K | $175 | 36 |
| Houston | $1,280 | $305K | $190 | 48 |
| Fort Worth | $1,280 | $340K | $175 | 34 |
| Plano | $1,400 | $475K | $155 | 58 |
| Dallas | $1,450 | $380K | $175 | 46 |
| Austin | $1,650 | $548K | $175 | 41 |
What Nobody Tells You About Texas
Real trade-offs most relocation guides gloss over.
Summer heat is genuinely dangerous — 100°F+ days stretch from June through September, and the grid has failed multiple times (Uri 2021, summer 2023). Outdoor time is limited to early morning or after sundown.
Property taxes are the trade-off for no income tax. On a $450K home you'll pay $7,500-$10,500/year in property taxes — the highest in the country alongside New Jersey and Illinois.
Car dependency is near-total outside a few Austin and Houston neighborhoods. You will drive everywhere, including to the grocery store. Expect $400-$600/mo in all-in car costs.
Car insurance and homeowners insurance are rising fast — Texas homeowners insurance averages $3,500-$4,500/year (well above the $2,000 US average) driven by hail, hurricanes, and tornado risk.
Abortion access is effectively zero for anyone past ~6 weeks pregnant. Many medical providers also refuse to manage miscarriages or pregnancy complications. People of childbearing age should factor this in.
K-12 public schools are underfunded relative to the national median and teacher salaries lag. Well-regarded districts (Eanes in Austin, Plano in Dallas, Highland Park) drive housing premiums of $100K+ over surrounding areas.
ERCOT (the Texas power grid) is separate from the national grid and has failed during both extreme cold (Feb 2021 killed 700+) and extreme heat events. Home generators are common in Texas suburbs for a reason.
Frequently Asked Questions
Is Texas really cheaper than California for a software engineer?
Usually yes, but less than people assume. A $200K total comp in SF translates to roughly $180K in Austin — the 10% haircut is made up by $0 state income tax (saves $13,000/year at that salary) and rent that's roughly half ($1,650 Austin 1BR vs $3,400 SF). Net you're $25K-$35K ahead in Austin, not $50K+. Home buying tilts it further toward Texas — median Austin home is ~$500K vs $1.3M in SF.
How much is property tax in Texas?
Property tax rates are set locally and range from 1.6% to 2.8% of appraised value. Austin-area effective rate is ~1.9%, Dallas 2.2%, Houston 2.4%, San Antonio 2.0%. On a $450K Austin home that's ~$8,500/year. There's a state-mandated 10% annual cap on appraisal increases for homesteads, so your bill can't spike more than 10%/year.
Which Texas city is best for remote workers?
Austin is the default answer for its tech scene, walkable pockets, and airline access — 1BR $1,650/mo, walk score 42 (higher than Dallas/Houston). Dallas has more affordable housing and a deeper service economy. Houston is cheapest of the big four ($1,280/mo 1BR) with excellent food and diversity but humid and sprawling. San Antonio is the wildcard — cheapest of the four, charming, but thin on tech jobs if you ever need to job-hunt locally.
Can I afford a house in Texas on a $100K salary?
Yes in most Texas cities except central Austin. On $100K, you can afford a roughly $350K-$400K home with 10-20% down — that buys a median home in San Antonio, Houston outer ring, Dallas suburbs, and Fort Worth. In Austin proper, $400K buys a small condo or a house 30-45 minutes out. Don't forget property tax: on a $400K home, budget $600-$800/month for taxes on top of P&I.