Austin, TX Cost of Living (2026)

Austin has a cost of living index of 115, about 15% above the national average. The housing index is 148, which tells a significant part of the story: housing costs roughly doubled between 2019 and 2023 before softening somewhat in 2024. A one-bedroom apartment in Austin now averages around $1,500 to $1,900 per month, and median home prices sit near $500,000. The median household income is approximately $75,000, which was comfortable against Austin's cost structure five years ago but is more stretched today.

For someone moving from an average-cost city, a $100,000 salary is worth about $87,000 in Austin. That's a modest premium compared to coastal cities but still reflects a market that has moved significantly from its affordable-Texas reputation. Workers coming from California or New York will find meaningfully lower housing costs, while those from Dallas or Houston will find Austin slightly more expensive.

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.