Texas cost of living
Can you afford to live in the Lone Star State?
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Texas draws thousands of newcomers every year with its vibrant cities, diverse communities and wide-open spaces. For families and individuals considering a move, it’s important to understand exactly how far your dollar will go in the state’s varied economy.
To determine the cost of living in Texas, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Texas spend $52,299 each year on goods and services, on average.
Jump to insightTThe median rent in Texas is $1,258, versus the national median rent of $1,639.
Jump to insightResidents in Texas spend $286.19 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $2.76 in Texas.
Jump to insightRecent data shows that employees in Texas pay $1,645 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Texas
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Texas was $52,299 in 2023. This figure reflects what Texans typically pay each year for housing, health care, groceries, energy and a range of other goods and services.
Here’s a breakdown of the largest spending categories in Texas:
| Category | Annual per-capita cost in Texas |
|---|---|
| Housing and utilities | $9,428 |
| Health care | $7,411 |
| Food and beverages for off-premises consumption | $4,123 |
| Gasoline and other energy goods | $1,500 |
| All other personal consumption expenditures | $29,836 |
| Total cost | $52,299 |
Housing costs in Texas
Housing is often the largest monthly expense for Texas residents. According to 2025 data from Apartments.com, the average rent in Texas is $1,258, while the national average rent is $1,639. Local costs vary — major metropolitan areas like Austin and Dallas tend to have higher prices, while smaller towns offer more affordable options. The U.S. Census Bureau’s 2023 American Community Survey details the typical rates:
- One-bedroom rent: $1,261
- Two-bedroom rent: $1,396
- Three-bedroom rent: $1,644
- Four-bedroom rent: $2,129
If you are planning to purchase a home, the median home price in Texas is $353,000, compared with the U.S. median home price of $446,638.
Property taxes can also impact your monthly budget. Texas ranks No. 7 in the nation for highest effective property tax rates, with an average rate of 1.36%.
» COMPARE: Best moving companies in Texas
Food costs in Texas
Food expenses in Texas can shift dramatically depending on your shopping habits and how often you eat out. The latest data from the U.S. Census shows the average weekly grocery bill in Texas is $286.19, compared with the U.S. average of $270.21.
Your total food costs will reflect your daily habits — those who frequently dine out in cities like Houston or San Antonio may notice higher monthly expenses than residents in smaller towns who cook at home. Taking advantage of local produce, shopping at bulk stores or seeking out weekly specials can help families and individuals keep grocery costs in check.
Transportation costs in Texas
Driving is a part of life for many Texans, so transportation costs are a significant budget item. The average price for a gallon of regular gas in Texas is $2.76, compared with the U.S. average of $3.13.
Auto insurance is another key consideration. The average annual premium in Texas for full coverage is $1,470.12, while the national average is $1,258.
Health care costs in Texas
Health care remains one of the most important — and sometimes unpredictable — expenses for Texas families. The typical employee contribution for employer-sponsored health insurance in Texas is $1,645 per year. Employers cover the remaining $6,535 out of the total annual premium of $8,180.
Across the country, workers pay an average of $1,640 per year toward a total premium of $8,182.
Utility costs in Texas
Utility bills can fluctuate with Texas weather, especially during hot summers. The average monthly electric bill in Texas is $165.82, compared with $136.84 across the U.S.
For natural gas, Texans pay $14.15 per thousand cubic feet, compared with the national average of $12.92.
FAQ
Does Texas have a high cost of living?
No, Texas does not have a particularly high cost of living. Most essentials — including housing — cost less than what you would pay in many other states.
Is Texas a good place to live?
Yes, Texas is a good place to live if you’re seeking a state that attracts many new residents each year and offers a lower cost of living. Texas stands out for its growing population, and people are moving to the Lone Star State for the affordable housing and strong job opportunities found in several regions.
» RELATED: Best moving companies
Is Texas good for renters?
Yes, Texas is fairly good for renters. Renters benefit from a good quality of life, and rental prices tend to be lower than the national average.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?.” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
