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Texas cost of living & income (2026)

Quick answer: Texas has a cost-of-living index of 90.7 (100 = national baseline), an illustrative estimated annual cost of living of about $45,350, median household income of $79,721, combined average sales tax about 8.20%, and regular gas about $3.460/gal in the June 2026 AAA snapshot used on the hub.

COL index90.7100 = US baseline
Est. annual COL$45,350
Median HH income$79,721
Sales tax (comb.)8.20%
Gas (87 octane)$3.460/galJune 2026 AAA
Largest cityHouston (2,314,157)

Taxes & economy

Income tax: None

Sales tax: 6.25% state (combined avg. ~8.20%)

Major industries: Energy (oil/gas/renewables), technology, agriculture, aerospace, manufacturing, trade, tourism

Climate snapshot

Summer high ~95°F (July, varies widely) · Winter low ~41°F (January, Houston area)

Culture (context)

The Alamo / Space Center Houston

Open the interactive 50-state map & table — sort, filter, and use the dual ranker on the full explorer.

What this means for you

What this means for you: a basket priced at 100 on the national baseline is indexed at 90.7 in Texas. A salary that buys that basket at the baseline would need about 90.7% of that salary to buy the same basket here. That is index math from this snapshot, not a tax-equalized offer and not your rent.

Compare a salary: Texas vs California on the explorer.

How to read this page

  1. Read the quick answer for Texas' cost-of-living index, estimated annual cost, median income, sales tax, and gas price.
  2. Open the 50-state explorer and compare Texas with another state. The salary line multiplies pay by the other index divided by this index.
  3. Use the mortgage, rent, and paycheck calculators with your own numbers. This page does not compute a tax return.

Related calculators: mortgage · rent · paycheck.

Related states

Similar cost-of-living index in this dataset:

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FAQ

What is Texas' cost of living index?

Texas' cost-of-living index is 90.7 (national baseline 100) in this 2026 classroom snapshot.

What is the estimated annual cost of living in Texas?

The explorer lists an illustrative estimated annual cost of living of about $45,350 for Texas.

What is median household income in Texas?

Median household income in Texas is $79,721 in this dataset.

What is the combined average sales tax rate in Texas?

The combined average sales tax rate shown for Texas is 8.20%. State and local rules vary; see the Tax Foundation citation on the hub.

Does Texas have a state income tax?

State income tax in Texas: None.

What was regular gas in Texas in this snapshot?

87-octane gas is listed at $3.460 per gallon (AAA, June 2026) in the explorer data.

How should a household read Texas' cost-of-living index?

The index is 90.7 against a US baseline of 100. A salary that buys a basket at the baseline would need about 90.7% of that salary to buy the same basket in Texas in this snapshot. It is not a tax bill, a rent quote, or financial advice.

Sources: Tax Foundation (sales tax), BEA / ACS (income & COL), AAA gas (June 20, 2026). Educational, not financial, tax, or relocation advice.