Texas's cost of living index is 90.8 — 9.2% below the US average of 100 (MERIC (C2ER index), Second Quarter 2026). The index averages the cities that take part in the survey, so it describes those areas rather than the whole state. Compare purchasing power and equivalent salaries across states.
CoL Index
90.8
US avg = 100 · MERIC (C2ER index), Second Quarter 2026
vs. National Avg
-9.2%
Less expensive
Median Income
$79,721
Median household · Census ACS 2024 1-year
Equiv. at US Avg
$87,798
Same purchasing power
| CoL Index | 90.8 | MERIC (C2ER index), Second Quarter 2026 — composite, US avg = 100 |
| vs. National | 9.2% | Below average cost |
| Median Household Income | $79,721 | Texas median — Census ACS 2024 1-year |
| National Purchasing Power | $87,798 | Equivalent $ at US avg CoL |
| Overall Category | Moderate | CalcHub band of the index: Low < 90 ≤ Moderate < 100 ≤ High < 115 ≤ Very High |
| Population | 31,709,821 | Census Bureau estimate, July 1, 2025 |
With a cost of living index of 90.8, Texas is 9% below the national average. Lower costs in Texas mean your dollar goes further. A salary of $79,721 in Texas provides the equivalent purchasing power of $87,798 in a state at the national average.
Housing is typically the largest driver of cost of living differences between states.Texas's typical home value of $299,400 is well below the U.S. typical value of $368,700 (Zillow Home Value Index, August 2026). Other factors include state income tax (none in Texas), sales tax (6.25% state rate), and property taxes (1.31% effective rate).
