Texas · Population 2,300,419 · Updated March 2026
How far your income goes in Houston
State-level tax rates that affect your costs
Houston offers a below-average cost of living, giving residents more purchasing power compared to many US cities. With a cost index of 88 (where 100 equals the national median), Houston residents can expect to pay median rent of $1,313/month while earning a median household income of $62,894/year.
The median home value in Houston, TX is $253,400, with typical monthly owner costs around $1,316 including mortgage, insurance, and taxes. With a rent-to-income ratio of 25.1%, Houston falls within the generally affordable range, though it's approaching the 30% burden threshold.
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 Houston.
Common questions about living costs in Houston