CITY COMPARISON
Los Angeles 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.
Los Angeles to Austin is a well-traveled route for tech and creative workers leaving California. The tax story drives it. California taxes income at a high rate. Texas does not tax wage income at all.
Austin rent and cost of living sit well below Los Angeles. You drop the state income tax and cut housing costs in the same move.
Is Los Angeles or Austin cheaper to live in?
At a $100,000 salary, moving from Los Angeles to Austin frees up roughly $28,300 a year in disposable income. At $150,000 the gap widens to about $32,900 a year in Austin's favor.
Austin wins clearly for most earners. No Texas income tax, much lower rent, and a lower overall cost of living. Los Angeles only competes when an industry, usually entertainment, keeps you anchored there.
DISPOSABLE INCOME: MOVING LOS ANGELES → AUSTIN
AT A $100,000 SALARY
in Austin's favor
AT A $150,000 SALARY
in Austin'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: Los Angeles 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 | Los Angeles | Austin |
|---|---|---|
| Gross salary | $100,000 | $100,000 |
| Federal income tax | -$15,000 | -$15,000 |
| State income tax (9.3%) Austin: (0%) | -$9,300 | -$0 |
| FICA (Social Security + Medicare) | -$7,650 | -$7,650 |
| Housing (median rent) ($2,260/mo) Austin: ($1,250/mo) | -$27,120 | -$15,000 |
| Other living costs (COL index 161) Austin: (COL index 119) | -$39,150 | -$32,850 |
| Sales tax on spending (8.85%) Austin: (8.2%) | -$2,425 | -$1,886 |
| Disposable income / year | -$645 | $27,614 |
AT A $150,000 SALARY
| Line item | Los Angeles | Austin |
|---|---|---|
| Gross salary | $150,000 | $150,000 |
| Federal income tax | -$27,000 | -$27,000 |
| State income tax (9.3%) Austin: (0%) | -$13,950 | -$0 |
| FICA (Social Security + Medicare) | -$11,475 | -$11,475 |
| Housing (median rent) ($2,260/mo) Austin: ($1,250/mo) | -$27,120 | -$15,000 |
| Other living costs (COL index 161) Austin: (COL index 119) | -$39,150 | -$32,850 |
| Sales tax on spending (8.85%) Austin: (8.2%) | -$2,425 | -$1,886 |
| Disposable income / year | $28,880 | $61,789 |
Los Angeles vs Austin: taxes, rent, and schools at a glance
| Metric | Los Angeles | Austin |
|---|---|---|
| State income tax | 9.3% | None |
| Median 1-bedroom rent | $2,260/mo | $1,250/mo |
| Combined sales tax | 8.85% | 8.2% |
| Cost-of-living index (US avg = 100) | 161 | 119 |
| School composite rating (1-10) | 6/10 | 7/10 |
Who should pick Los Angeles?
Stay in Los Angeles if your career lives in entertainment or another field physically rooted in the city. The tax and housing costs are high, so the reason to stay has to carry real weight.
Who should pick Austin?
Choose Austin if you can bring California pay into a no-income-tax state. Austin has a genuine tech and creative scene, and the cost of living lets you keep the difference instead of spending it on rent.
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 Los Angeles 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.