Atlanta, GA vs Austin, TX Cost of Living (2026)

Atlanta has a cost of living index of 94.6, about 5.4% below the national average. Housing runs below the national baseline, with a housing index of 83.2. Typical apartment rent is about $1,500 a month, and median home values are around $418,200. The median household income is approximately $74,000.

A $100,000 salary in an average-cost city stretches to about $105,700 in Atlanta. That extra room can make it easier to save, pay down debt, or stretch for a better housing setup. Most everyday categories stay manageable here, although transportation still runs a bit high.

Georgia has a flat state income tax of 5.49% as of 2024, with a planned reduction to 4.99% over coming years. That's a moderate rate. There is no Atlanta city income tax. Sales tax in Fulton County runs around 8.9%, which is on the higher side. Property taxes in the city of Atlanta are moderate by national standards, and homestead exemptions reduce the effective burden for owner-occupants.

One practical cost consideration in Atlanta is transportation. The metro is heavily car-dependent, and the expressway network is congested during peak hours. MARTA rail covers portions of the city and the airport but does not reach most suburbs. Vehicle ownership, insurance, and fuel represent a significant portion of monthly expenses for most Atlanta households. Car insurance rates in Georgia are above the national average, typically running $1,600 to $2,200 per year for a standard policy.

Austin has a cost of living index of 95.6, about 4.4% below the national average. The housing index is 96.8, so housing still does a lot to shape the local budget. Typical apartment rent is about $1,774 a month, and median home values are around $492,364. The median household income is approximately $88,000.

A $100,000 salary in an average-cost city stretches to about $104,600 in Austin. The difference is real, but it is small enough that housing choice matters more than the metro average by itself. Most day-to-day categories stay close to the national baseline.

Texas has no state income tax, which is a real financial advantage. At a $100,000 gross salary, the absence of state income tax puts several thousand additional dollars in take-home pay compared to someone earning the same amount in a state with a 5 to 10% income tax. That advantage partially explains why Austin has attracted significant corporate relocations and individual migration from higher-tax states.

Property taxes in Texas are notably high and represent an important offset to the income tax advantage. Effective property tax rates in the Austin metro often run 1.8 to 2.2% of assessed value annually. On a $500,000 home, that's $9,000 to $11,000 per year in property taxes alone, on top of a mortgage. Buyers evaluating affordability should include the property tax figure explicitly in their monthly cost calculations, as it represents a cost that is materially higher than in most other states.