Texas · Population 967,862 · Updated March 2026
How far your income goes in Austin
State-level tax rates that affect your costs
Austin has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 134 (where 100 equals the national median), Austin residents can expect to pay median rent of $1,655/month while earning a median household income of $91,461/year.
The median home value in Austin, TX is $512,700, with typical monthly owner costs around $1,747 including mortgage, insurance, and taxes. The median rent-to-income ratio of 21.7% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
Texas has no state income tax, which can represent significant savings compared to high-tax states. Combined with a 6.25% sales tax rate and 1.6% effective property tax rate, the overall tax environment helps keep costs manageable in Austin.
Common questions about living costs in Austin
Compare the cost of living in Austin, TX with 299 other major U.S. cities