CITY COMPARISON
Houston 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.
Houston to Austin is an intra-Texas move, so the tax question is settled before you start. Neither city taxes income, because Texas has no state income tax.
That leaves cost of living and lifestyle. Houston's overall cost of living is lower than Austin's, and rent is close between the two. Austin posts stronger school ratings and a denser tech scene.
Is Houston or Austin cheaper to live in?
At a $100,000 salary, moving from Houston to Austin costs roughly $3,700 a year in disposable income. At $150,000 the gap narrows to about $3,700 a year in Houston's favor.
Houston wins on raw cost, with a lower overall cost of living and similar rent. Austin wins on schools and on its tech and creative job market. With no income tax in play, this is a lifestyle and career decision.
DISPOSABLE INCOME: MOVING HOUSTON → AUSTIN
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 Austin leaves more money after tax, housing, and everyday costs.
Full cost breakdown: Houston 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 | Houston | 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) ($1,260/mo) Austin: ($1,250/mo) | -$15,120 | -$15,000 |
| Other living costs (COL index 95) Austin: (COL index 119) | -$29,250 | -$32,850 |
| Sales tax on spending (8.2%) | -$1,679 | -$1,886 |
| Disposable income / year | $31,301 | $27,614 |
AT A $150,000 SALARY
| Line item | Houston | 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) ($1,260/mo) Austin: ($1,250/mo) | -$15,120 | -$15,000 |
| Other living costs (COL index 95) Austin: (COL index 119) | -$29,250 | -$32,850 |
| Sales tax on spending (8.2%) | -$1,679 | -$1,886 |
| Disposable income / year | $65,476 | $61,789 |
Houston vs Austin: taxes, rent, and schools at a glance
| Metric | Houston | Austin |
|---|---|---|
| State income tax | None | None |
| Median 1-bedroom rent | $1,260/mo | $1,250/mo |
| Combined sales tax | 8.2% | 8.2% |
| Cost-of-living index (US avg = 100) | 95 | 119 |
| School composite rating (1-10) | 5/10 | 7/10 |
Who should pick Houston?
Pick Houston if you want the lower cost of living and a huge, diverse job market, especially in energy, healthcare, and shipping. Your dollar stretches further here than in Austin.
Who should pick Austin?
Choose Austin if schools matter or you want into its tech and creative scene. You pay a bit more for the overall cost of living, but the school ratings and the job market in those fields are stronger.
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 Houston 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.