CITY COMPARISON
Dallas vs Austin Cost of Living: Which Is Cheaper in 2026?
Data updated May 2026. Rent from Zillow ZORI, taxes from the Tax Foundation, cost-of-living index from BEA.
Dallas to Austin keeps you in Texas, so neither city touches your income. Texas has no state income tax. The comparison comes down to cost of living and what kind of metro you want.
Dallas has a lower overall cost of living than Austin and similar rent. Austin runs a bit pricier but posts stronger school ratings and a deeper tech presence.
Is Dallas or Austin cheaper to live in?
At a $100,000 salary, moving from Dallas to Austin costs roughly $2,200 a year in disposable income. At $150,000 the gap narrows to about $2,200 a year in Dallas's favor.
Dallas wins narrowly on cost, with a lower overall cost of living and comparable rent. Austin counters with better schools and a stronger tech scene. No income tax either way, so this is a lifestyle and career call.
DISPOSABLE INCOME: MOVING DALLAS → AUSTIN
AT A $100,000 SALARY
in Dallas's favor
AT A $150,000 SALARY
in Dallas's favor
Assumes the same gross salary in both cities (the remote-work case) and a single filer renting at the local median. Positive means Austin leaves more money after tax, housing, and everyday costs.
Full cost breakdown: Dallas vs Austin
Here is where every dollar goes in each city, at two salary levels. Taxes, housing, and everyday costs are all in.
AT A $100,000 SALARY
| Line item | Dallas | Austin |
|---|---|---|
| Gross salary | $100,000 | $100,000 |
| Federal income tax | -$15,000 | -$15,000 |
| State income tax (0%) | -$0 | -$0 |
| FICA (Social Security + Medicare) | -$7,650 | -$7,650 |
| Housing (median rent) ($1,290/mo) Austin: ($1,250/mo) | -$15,480 | -$15,000 |
| Other living costs (COL index 102) Austin: (COL index 119) | -$30,300 | -$32,850 |
| Sales tax on spending (8.2%) | -$1,739 | -$1,886 |
| Disposable income / year | $29,831 | $27,614 |
AT A $150,000 SALARY
| Line item | Dallas | Austin |
|---|---|---|
| Gross salary | $150,000 | $150,000 |
| Federal income tax | -$27,000 | -$27,000 |
| State income tax (0%) | -$0 | -$0 |
| FICA (Social Security + Medicare) | -$11,475 | -$11,475 |
| Housing (median rent) ($1,290/mo) Austin: ($1,250/mo) | -$15,480 | -$15,000 |
| Other living costs (COL index 102) Austin: (COL index 119) | -$30,300 | -$32,850 |
| Sales tax on spending (8.2%) | -$1,739 | -$1,886 |
| Disposable income / year | $64,006 | $61,789 |
Dallas vs Austin: taxes, rent, and schools at a glance
| Metric | Dallas | Austin |
|---|---|---|
| State income tax | None | None |
| Median 1-bedroom rent | $1,290/mo | $1,250/mo |
| Combined sales tax | 8.2% | 8.2% |
| Cost-of-living index (US avg = 100) | 102 | 119 |
| School composite rating (1-10) | 6/10 | 7/10 |
Who should pick Dallas?
Pick Dallas if you want a lower cost of living and a massive, varied job market spanning finance, tech, and corporate headquarters. The metro is huge, and your money goes a little further than in Austin.
Who should pick Austin?
Choose Austin if schools or the tech and creative scene are your priority. It costs a bit more on the overall index, but for those reasons many people decide the premium is worth it.
How we calculated this
Disposable income is gross salary minus federal income tax, state income tax, FICA, housing, everyday non-housing costs, and sales tax on discretionary spending. Federal tax uses 2026 effective rates after the standard deduction for a single filer. State income tax is a single-bracket approximation for mid-six-figure earners. Housing is the median 1-bedroom rent. Non-housing costs scale with the BEA cost-of-living index. Sales tax is applied to roughly 70 percent of discretionary spending, since groceries and many services are reduced-rate or exempt in most states.
The numbers on this page assume the same gross salary in both cities. That is the remote-work scenario, and it is the cleanest way to isolate the cost-of-living difference. If a new job would rebase your salary by city, plug both real offers into the tool below.
Run your own Dallas vs Austin numbers
The interactive Move-To-City tool lets you set different salaries for each city, enter your actual rent, switch filing status, and see the full FIRE-timeline impact of the move.
Open the Move-To-City tool →KEEP READING
Educational only, not financial advice. Cost-of-living estimates are modeled approximations from public data and will not match any individual budget exactly. Verify rent, tax, and salary figures for your own situation before making a move.