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
Compare the cost of living in Houston, TX with 299 other major U.S. cities