Katy, TX

Above Avg · 120

Texas · Population 23,900 · Updated March 2026

$1,609
Median Rent / Month
$107,332
Median Income
$376,800
Median Home Value
$1,839
Owner Costs / Month

Affordability

How far your income goes in Katy

18.0%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Texas

State-level tax rates that affect your costs

0%
Income Tax (Top Rate)
6.25%
Sales Tax
1.6%
Property Tax Rate

Estimated Annual Costs

$19,308
Annual Rent
$0
State Income Tax
$6,029
Property Tax (est.)

Cost of Living Overview

Katy has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 120 (where 100 equals the national median), Katy residents can expect to pay median rent of $1,609/month while earning a median household income of $107,332/year.

The median home value in Katy, TX is $376,800, with typical monthly owner costs around $1,839 including mortgage, insurance, and taxes. The median rent-to-income ratio of 18.0% 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 Katy.

Frequently Asked Questions

Common questions about living costs in Katy

What is the cost of living in Katy, TX?
The cost of living index in Katy, TX is 120 (US average = 100). Median monthly rent is $1,609, median household income is $107,332/year, and the median home value is $376,800.
Is Katy, TX affordable?
No, Katy is more expensive than the national average with a cost index of 120. The rent-to-income ratio is 18.0%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Katy, TX?
The median gross rent in Katy, TX is $1,609 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $19,308.
What is the median household income in Katy?
The median household income in Katy, TX is $107,332 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Texas?
Texas has a top income tax rate of 0%, a sales tax of 6.25%, and an effective property tax rate of 1.6%. Notably, there is no state income tax.