Texas Cost of Living & Economic Score

Federal Bureau of Economic Analysis data on price levels, real income, and household-budget impact for Texas. Last updated 2024.

InflationRank Score

C+
InflationRank Score
78 / 100
Texas ranks around the U.S. national average for cost-of-living-adjusted economic conditions.
Cost level (RPP)
96.4
3.6% below U.S. average
Real per-capita income
$57.0K
2K below U.S. ($59K)
Property tax
1.81%
vs U.S. avg 1.02%
Sales tax
8.20%
combined state + local avg
State income tax (top)
None
top marginal rate
Home insurance (avg)
$2,820/yr
~$300K coverage

Cost of living in Texas

According to the U.S. Bureau of Economic Analysis, prices in Texas run 3.6% below the U.S. average (Regional Price Parity index 96.4 on a base of 100). The state sits in the South region. That puts it close to the middle of the U.S. cost-of-living distribution.

Real per-capita personal income — what local residents actually earn after adjusting for cost of living — is $57.0K (vs $59K nationally). Locals have somewhat lower real purchasing power than the U.S. average, even after accounting for the state's cheaper or comparable price level.

Notable cost factors: no state income tax, above-average property tax (1.81%), elevated homeowners insurance (~$2,820/yr).

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About the InflationRank Score

The InflationRank Score is a proprietary 0–100 composite that summarizes a place's cost-of-living and economic conditions on a familiar A–F grading scale. Higher scores reflect a better cost-of-living-adjusted economic situation.

The composite weighs three dimensions sourced from federal government datasets: cost level (how local prices compare to the national average), inflation pressure (recent direction and pace of cost movements), and income resilience (real, cost-adjusted earning power of local residents). The score is anchored to the U.S. national average and reviewed annually as federal data refreshes.

Underlying data is drawn from authoritative federal economic agencies and public housing datasets. See full data sources →