Texas Cost of Living: What It Really Takes to Live There in 2025

When people talk about the Texas cost of living, the total amount of money needed to cover basic expenses like housing, food, transportation, and taxes in the state of Texas. Also known as Texas living expenses, it's one of the most debated topics for families, remote workers, and retirees looking to stretch their dollars. Unlike states with high taxes and strict rent controls, Texas offers no state income tax, which instantly changes how much you keep from every paycheck. But that’s just one piece of the puzzle.

The real question isn’t just whether Texas is cheap—it’s where the hidden costs hide. Texas housing prices, the average cost to buy or rent a home across major cities like Austin, Dallas, Houston, and San Antonio have jumped over 40% in the last five years. What used to be a $200,000 starter home in Fort Worth now sits near $300,000. Renters aren’t much better off—studio apartments in downtown Austin now average $1,800 a month, up from $1,300 in 2020. And don’t assume suburbs are cheaper; commute times and gas prices eat into those savings.

Texas utilities, the monthly bills for electricity, water, internet, and trash services in Texas homes are another surprise. Texas has one of the most deregulated power markets in the U.S., which sounds good until you get a summer bill that hits $300 because of air conditioning. In Houston, the average electric bill is nearly 25% higher than the national average. Water rates are rising too, especially in drought-prone areas like El Paso. And while internet is usually decent, rural areas still struggle with slow speeds and high prices.

Then there’s Texas taxes, the local property, sales, and other taxes that fund schools, roads, and services in Texas. No income tax sounds great—until you realize property taxes are among the highest in the country. In some counties, you pay over 2% of your home’s value every year. A $350,000 house could mean $7,000 in property taxes annually. Sales tax? It’s 8.25% statewide, and local add-ons can push it to 10%. That $50 grocery run becomes $55 before you even get to the checkout.

Food, healthcare, and childcare? They’re not cheap either. A gallon of milk costs more in Dallas than in Chicago. Daycare for one child runs $1,100 a month in Houston—higher than in New York City. And while doctors might not charge as much as in California, insurance premiums are steep because of high malpractice rates and fewer providers in rural zones.

So is Texas affordable? It depends on your job, your location, and how you manage your spending. If you’re moving for a high-paying tech or oil job, the math works. But if you’re on a fixed income or working remotely with a median salary, you’ll need a sharp budget. The state’s growth has made it a magnet—but also a pressure cooker for everyday costs.

Below, you’ll find real breakdowns from people who’ve lived through it: what they paid for rent, how much their power bill spiked, which neighborhoods are actually worth it, and what they wish they’d known before moving. No fluff. Just the numbers, the trade-offs, and the truth about life in Texas in 2025.