CITY COMPARISON
NYC 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.
New York to Austin is one of the most-searched moves in the country, and the money reason is simple. New York taxes your income at the state and city level. Texas does not tax wage income at all. On a six-figure salary that gap alone is real money every year.
Rent is the other half of the story. A Manhattan one-bedroom runs more than double an Austin one-bedroom, and Austin's overall cost of living sits far below New York's. The catch is that Austin salaries are often lower, so the move works best if you keep your New York pay through a remote arrangement.
Is NYC or Austin cheaper to live in?
At a $100,000 salary, moving from NYC to Austin frees up roughly $34,700 a year in disposable income. At $150,000 the gap widens to about $38,100 a year in Austin's favor.
Austin wins on raw numbers for almost everyone. Texas has no state income tax, rent is roughly half of New York's, and the broader cost of living is much lower. New York only pulls ahead if a job there pays enough more to cover both the tax and housing gap, which is a high bar.
DISPOSABLE INCOME: MOVING NYC → 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: NYC 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 | NYC | Austin |
|---|---|---|
| Gross salary | $100,000 | $100,000 |
| Federal income tax | -$15,000 | -$15,000 |
| State income tax (6.85%) Austin: (0%) | -$6,850 | -$0 |
| FICA (Social Security + Medicare) | -$7,650 | -$7,650 |
| Housing (median rent) ($2,660/mo) Austin: ($1,250/mo) | -$31,920 | -$15,000 |
| Other living costs (COL index 187) Austin: (COL index 119) | -$43,050 | -$32,850 |
| Sales tax on spending (8.53%) Austin: (8.2%) | -$2,571 | -$1,886 |
| Disposable income / year | -$7,041 | $27,614 |
AT A $150,000 SALARY
| Line item | NYC | Austin |
|---|---|---|
| Gross salary | $150,000 | $150,000 |
| Federal income tax | -$27,000 | -$27,000 |
| State income tax (6.85%) Austin: (0%) | -$10,275 | -$0 |
| FICA (Social Security + Medicare) | -$11,475 | -$11,475 |
| Housing (median rent) ($2,660/mo) Austin: ($1,250/mo) | -$31,920 | -$15,000 |
| Other living costs (COL index 187) Austin: (COL index 119) | -$43,050 | -$32,850 |
| Sales tax on spending (8.53%) Austin: (8.2%) | -$2,571 | -$1,886 |
| Disposable income / year | $23,709 | $61,789 |
NYC vs Austin: taxes, rent, and schools at a glance
| Metric | NYC | Austin |
|---|---|---|
| State income tax | 6.85% | None |
| Median 1-bedroom rent | $2,660/mo | $1,250/mo |
| Combined sales tax | 8.53% | 8.2% |
| Cost-of-living index (US avg = 100) | 187 | 119 |
| School composite rating (1-10) | 6/10 | 7/10 |
Who should pick NYC?
Stay in New York if your career depends on being there in person: finance, media, fashion, or a network that only exists in the city. The salary premium has to be large and durable to beat the tax and rent math, but for some careers it genuinely is.
Who should pick Austin?
Pick Austin if you can carry a New York or remote salary into a no-income-tax state. That is the strongest version of this move. You free up thousands a year in tax, cut your housing cost roughly in half, and the schools rate higher too.
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 NYC 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.