What's the Average Salary in Texas and Is It Enough to Live Comfortably?

The question of income adequacy varies dramatically depending on where you settle. For those considering Texas, understanding both the average salary in Texas and the region’s cost of living becomes crucial when planning a move. Recent research shows that residents across the Lone Star State face a particular challenge: while the state offers several affordable options, the median income falls slightly short of what’s needed for comfortable living in many areas.

According to a comprehensive SmartAsset study utilizing MIT’s Wage Calculator, the income requirements vary significantly across Texas cities. For a single individual with no dependents, approximately $75,000 annually represents a reasonable threshold for comfortable living. A family of four requires roughly $175,000 or more. These projections follow the widely-used 50/30/20 budgeting principle—allocating half your income toward essential needs, 30% for discretionary wants, and the remaining 20% for debt management, savings, and investment opportunities.

Understanding Texas’s Cost of Living vs. Median Income

The average salary in Texas presents an interesting paradox. According to 2023 data cited by the Austin American-Statesman, Texas workers earned a median annual salary of $68,744, positioning the state 12th nationally. Yet this figure falls somewhat short of the $75,000 benchmark identified for single-person comfortable living. This gap highlights why location selection within Texas proves so important—costs fluctuate considerably across different metropolitan areas.

The challenge facing Texas residents isn’t unique, but it’s notable. Individuals and families nationwide have grappled with rising expenses, making financial planning increasingly complex for those contemplating relocation. The state’s reputation for affordability compared to coastal regions remains partially justified, though certain cities command premium pricing.

Most Affordable Cities: How Houston and Other Texas Cities Compare

When examining Texas’s most affordable metro areas, four cities emerged as particularly attractive in the SmartAsset analysis. Houston topped the rankings for both single residents and families of four, offering the lowest cost-of-living requirements in the study. Beyond Houston, El Paso, Laredo, and Lubbock all demonstrated strong affordability characteristics, making them viable destinations for budget-conscious relocators.

These four communities represent genuine opportunities for individuals seeking value without sacrificing quality of life. Houston’s dominance reflects its diverse economy, robust job market, and relatively moderate housing costs compared to other major metropolitan centers.

Why Austin Stands Apart: A Premium Cost of Living

Notably absent from the affordability rankings is Austin, Texas’s state capital and tech hub. The city has evolved into a premium market requiring substantially higher income thresholds. Single individuals need approximately $100,000 annually to maintain a comfortable lifestyle, while families of four require around $224,000—significantly above the state average requirements.

This premium reflects Austin’s transformation into a major technology and entrepreneurial center, attracting both companies and talent that drive up local costs. For budget-conscious movers, Austin represents the exception rather than the rule within Texas’s generally affordable landscape.

What Constitutes an Adequate Income Level?

Financial experts at SoFi note that determining “good” income depends on multiple variables: family size, specific location, and individual spending patterns. Most Texas workers earn between $45,000 and $100,000 annually, representing the broad middle ground of Texas employment.

The SmartAsset methodology offers important context for these figures. Rather than simply listing basic living expenses, researchers doubled the calculated “needs” component to create realistic salaries that encompass not just survival but genuine comfort—including discretionary spending and financial security measures. This approach provides more meaningful guidance than basic subsistence calculations.

Understanding Texas’s average salary in Texas requires balancing these various data points. While the state’s median income trails slightly behind comfortable-living thresholds in many areas, strategic city selection can close this gap significantly. Houston and other affordable metros offer genuine opportunities for those prioritizing cost-effectiveness, whereas premium markets like Austin demand higher earning power but offer corresponding urban amenities and economic opportunities.