Cost of Living: Houston, TX vs San Jose, CA (2026)

Houston

Texas
88
VS

San Jose

California
254

Houston is 166% cheaper than San Jose.

$1,313/mo ↓ 50%
Median Rent
$2,617/mo ↑ 99%
$62,894/yr ↓ 56%
Median Income
$141,565/yr ↑ 125%
$253,400 ↓ 79%
Home Value
$1,187,800 ↑ 369%
$1,316/mo ↓ 53%
Owner Costs
$2,775/mo ↑ 111%
2,300,419
Population
990,054

Tax Comparison

0%
Income Tax
13.3%
6.25%
Sales Tax
7.25%
1.6%
Property Tax
0.71%

Affordability

25.1%
rent-to-income
Affordability
22.2%
rent-to-income

Detailed Comparison

When comparing Houston, TX and San Jose, CA, the overall cost of living indices are 88 and 254 respectively (national median = 100). Rent is $1,304/month cheaper in Houston, saving renters about $15,648/year.

Median household income is $78,671/year higher in San Jose. Home values also differ significantly — the median in Houston is $253,400 compared to $1,187,800 in San Jose.

Texas has no state income tax, giving Houston residents a significant tax advantage over California's 13.3% rate.

Frequently Asked Questions

Houston vs San Jose — common questions

Is Houston or San Jose cheaper to live in?
Based on our cost index, Houston is cheaper to live in with an index of 88 compared to 254 (US average = 100).
What is the rent difference between Houston and San Jose?
Median rent in Houston is $1,313/month and in San Jose it's $2,617/month — a difference of $1,304/month.
Which city has higher income, Houston or San Jose?
Median household income is $62,894 in Houston and $141,565 in San Jose. Median household income is $78,671/year higher in San Jose.
How do taxes compare between Texas and California?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. California has 13.3% income tax, 7.25% sales tax, and 0.71% property tax.
Should I move to Houston or San Jose?
It depends on your priorities. Houston has a cost index of 88 with median rent of $1,313/mo, while San Jose has a cost index of 254 with rent of $2,617/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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