Cost of Living in Houston, TX
Houston's cost of living index is 96 — making it 4.2% more affordable than the US national average. To maintain your current standard of living here, you would need to earn $96,000 for every $100,000 of national-average income.
The Houston Tax & Cost Impact
Since Texas has no state income tax, moving to Houston provides an immediate "automatic raise" of roughly 5-10% for most W-2 employees compared to high-tax states.
Decision Matrix
- ✓Housing: Housing is a value-play compared to national tiers.
- ✓Savings Rate: To save $2,000/mo here, you need a gross household income of ~$80,640.
COL Index
96
100 = national avg
Monthly Budget
$4,800
vs $5,000 national
Population
2.3M
Metro area
State Tax
None
Texas
Monthly Cost Breakdown
Estimated monthly costs in Houston vs national average for a typical household.
| Category | National Avg | Houston | Difference |
|---|---|---|---|
| Housing | $1,650 | $1,551 | -$99 |
| Groceries | $650 | $629 | -$21 |
| Transportation | $800 | $771 | -$29 |
| Healthcare | $400 | $389 | -$11 |
| Utilities | $300 | $288 | -$12 |
| Other | $1,200 | $1,162 | -$38 |
| Total | $5,000 | $4,800 | -$200 |
Salary Equivalent
To maintain the same standard of living in Houston, a national-average salary translates to:
$50,000 nationally
$48,000
$75,000 nationally
$72,000
$100,000 nationally
$96,000
$150,000 nationally
$144,000
What Your Salary Gets You in Houston
Here's how different salary levels translate to monthly purchasing power in Houston, TX, where the cost of living is 4% below the national average.
Cities With Similar Cost of Living
More Affordable Alternatives
El Paso, TX85FAQ: Cost of Living in Houston
Is Houston expensive to live in?
Houston's cost of living index is 96, which is near the national average of 100. Housing is typically the biggest factor, with estimated monthly rent around $1,584.
What salary do I need to live comfortably in Houston?
To maintain a middle-class lifestyle in Houston, you'd need approximately $72,000 per year, which is equivalent to a $75,000 salary at the national average cost of living.
How does Houston compare to other cities?
Houston is comparable in cost to Milwaukee, Tucson, Kansas City. More affordable alternatives include El Paso.