Cost of Living in Texas

Texas has no state income tax! This means that if you work in Texas, your paycheck will be free of taxes other than the federal income taxes. The absence of state income tax will make your take-home pay higher and provide more income for the basic cost of living purchases. Texas does, however, have a statewide 6.25% sales tax. There may be additional local sales or use taxes up to 2% depending on where you live. Texas generates a lot of tax revenue from royalties and taxes on oil and natural-gas production. ( 2024-03-27 salary.com )

Texas is ranked number 51 out of all states in overall healthcare access and affordability. Healthcare costs make up a significant part of the cost of living. The ability to afford healthcare as well as the ability to access care are key indicators of how much you will be paying for this important resource if you move to another state. Affordability is generally measured by the rates set for insurance coverage in a state, as well as the out-of-pocket expenses that need to be paid by you when receiving the care. If rates or out-of-pocket expenses are high, your cost of living will increase. Access to healthcare is how easy or difficult it may be to receive the care. Access is measured by identifying barriers that might prevent the delivery of care such as the inability to obtain insurance coverage, having to travel long distances to health care centers and lack of sufficient facilities and/or healthcare professionals. The timeliness of care, how fast you can get to see a healthcare provider, is another important measure. ( 2024-03-27 salary.com )

Texas has one of the highest state-wide average temperatures during the summer months of June, July, and August. If you live in Texas, it is likely that your air conditioner will be running non-stop for most of the summer. This could contribute to higher energy costs during the summer based on your thermostat setting and preference for a cool indoor climate. A hot summer is usually followed by cooler temperatures during the winter months when heating expenses may be low. Because the cost of living is linked to energy costs, expect an increase in those costs during the summer months if you live in Texas. ( 2024-03-27 salary.com )