Austin, TX vs Raleigh, NC Cost of Living (2026)

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.

Raleigh has a cost of living index of 94.7, about 5.3% below the national average. Housing runs below the national baseline, with a housing index of 87.5. Typical apartment rent is about $1,492 a month, and median home values are around $453,944. The median household income is approximately $72,000. Raleigh has seen rapid growth driven by the Research Triangle Park corridor, which houses major employers in technology, pharmaceuticals, and research.

A $100,000 salary in an average-cost city stretches to about $105,600 in Raleigh. 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 healthcare still runs a bit high.

North Carolina has a flat state income tax of 4.5%, which is straightforward and relatively low. There is no Raleigh city income tax. Sales tax in Wake County runs about 7.25%. Property taxes in Wake County are moderate, with effective rates around 0.8 to 1.0% of assessed value.

One specific dynamic in Raleigh: the growth of Research Triangle Park companies has created significant salary variation within the metro. Tech workers at IBM, Cisco, or SAS often earn $120,000 to $180,000 or more, while service, healthcare support, and government workers may earn $45,000 to $70,000. The same apartment costs the same for both groups, so workers at the lower end of the income spectrum face more budget pressure than the city-level median income suggests.