CITY COMPARISON
Dallas vs Houston 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 Houston is an intra-Texas move, so the income tax is identical: zero. The comparison comes down to cost of living, climate, and what you want a Texas metro to look like.
Both metros have similar rent and a comparable cost of living. Houston runs warmer and more humid. Dallas runs a touch cooler with a more spread-out feel. The job markets are huge in both, with Houston anchored in energy and medicine and Dallas anchored in finance, tech, and corporate headquarters.
Is Dallas or Houston cheaper to live in?
At a $100,000 salary, moving from Dallas to Houston frees up roughly $1,500 a year in disposable income. At $150,000 the gap widens to about $1,500 a year in Houston's favor.
Effectively a wash on cost. Both have no state income tax, similar rent, and a similar cost of living. The choice usually comes down to industry fit and climate preference.
DISPOSABLE INCOME: MOVING DALLAS → HOUSTON
AT A $100,000 SALARY
in Houston's favor
AT A $150,000 SALARY
in Houston'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 Houston leaves more money after tax, housing, and everyday costs.
Full cost breakdown: Dallas vs Houston
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 | Houston |
|---|---|---|
| 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) Houston: ($1,260/mo) | -$15,480 | -$15,120 |
| Other living costs (COL index 102) Houston: (COL index 95) | -$30,300 | -$29,250 |
| Sales tax on spending (8.2%) | -$1,739 | -$1,679 |
| Disposable income / year | $29,831 | $31,301 |
AT A $150,000 SALARY
| Line item | Dallas | Houston |
|---|---|---|
| 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) Houston: ($1,260/mo) | -$15,480 | -$15,120 |
| Other living costs (COL index 102) Houston: (COL index 95) | -$30,300 | -$29,250 |
| Sales tax on spending (8.2%) | -$1,739 | -$1,679 |
| Disposable income / year | $64,006 | $65,476 |
Dallas vs Houston: taxes, rent, and schools at a glance
| Metric | Dallas | Houston |
|---|---|---|
| State income tax | None | None |
| Median 1-bedroom rent | $1,290/mo | $1,260/mo |
| Combined sales tax | 8.2% | 8.2% |
| Cost-of-living index (US avg = 100) | 102 | 95 |
| School composite rating (1-10) | 6/10 | 5/10 |
Who should pick Dallas?
Pick Dallas if your industry is finance, tech, telecom, or corporate management. The metro hosts more Fortune 500 headquarters than almost anywhere outside New York.
Who should pick Houston?
Choose Houston if your work is in energy, healthcare, or any field anchored to the Texas Medical Center. The job market in those sectors is among the deepest in the country.
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 Houston 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.