What You Really Need to Earn to Live Comfortably in Texas

Living costs vary dramatically across the US, and Texas presents an interesting case study. Recent research from SmartAsset reveals that salary requirements differ significantly depending on where you settle within the state—and some Texas cities demand considerably more income than others.

The Austin Premium: Where Salary Expectations Jump

Before examining the broader Texas landscape, it’s worth noting the outlier: Austin. This tech hub breaks the mold for the state. Individual earners looking to live independently need approximately $100,000 annually, while families of four require around $224,000. These figures significantly exceed the state average, reflecting Austin’s surging housing costs and popularity among remote workers.

Most Affordable Texas Cities: Where Your Salary Stretches Further

The good news is that much of Texas remains accessible. According to SmartAsset’s analysis using the MIT Wage Calculator, Texas boasts four cities among the nation’s five most affordable options for both individuals and families.

Houston emerges as the most budget-friendly choice across both categories. A single person can live comfortably on approximately $75,000 annually, while a family of four needs roughly $175,000 or more. Beyond Houston, El Paso, Laredo, and Lubbock offer similar affordability, making them attractive alternatives for cost-conscious relocators.

Understanding the 50/30/20 Framework

These salary figures aren’t arbitrary. SmartAsset applies the 50/30/20 budgeting method as the standard for “comfortable” living. This approach allocates income as follows: 50% toward essential needs (housing, food, utilities), 30% for discretionary wants (entertainment, dining out), and 20% for debt repayment, savings, and investment. Understanding this framework helps contextualize why certain salary levels are recommended for specific regions.

The Reality Gap: What Texans Actually Earn

Here’s the challenge: Texas’s median annual salary in 2023 stood at $68,744, placing the state 12th nationally. This falls short of the $75,000 benchmark needed for a single person to live comfortably in Houston, according to data from the Austin American-Statesman. For families or those in higher-cost areas, the gap widens considerably.

Defining “Good” Salary in Texas

Determining what constitutes a good salary in Texas depends heavily on individual circumstances. According to SoFi, most individual earners in the state make between $45,000 and $100,000 annually. However, this range encompasses vastly different living experiences depending on location within Texas and personal spending patterns.

For those considering relocation within the US, Texas’s regional variation means your salary requirements could range from $75,000 in Houston to $224,000 in Austin—a dramatic difference that reflects broader trends in American real estate and cost of living disparities.