Quality of Life

California vs Texas: Cost of Living

Texas is cheaper overall by 44.2 cost-of-living points, but Texas has no state income tax, but Texas has lower median home values.

California

CA · West

138.5

Composite cost of living index (100 = national average). Lower = more affordable.

Texas

TX · South

Winner

94.3

Composite cost of living index (100 = national average). Lower = more affordable.

Visual comparison

California138.5

Texas94.3

Difference: 44.2 points — Texas leads.

National Rankings

Where They Rank Nationally

See where both states fall among all 50 states for cost of living.

California #48 · 138.5

Texas #18 · 94.3

Best Worst

10 Best States — Cost of Living

Lower is better

West Virginia

83.6

Mississippi

85.5

Arkansas

87.6

Kentucky

88.0

Alabama

88.6

Oklahoma

88.6

Missouri

90.0

Kansas

90.2

Iowa

91.0

#10

Ohio

91.0

Selected states

#48

California

138.5

#18

Texas

94.3

California ranks 48th and Texas ranks 18th nationally for cost of living.

Overview

Cost of Living in context

A fast-reading view of the tradeoffs behind the raw cost numbers.

Overall

Texas feels cheaper overall

Texas has the lower cost-of-living index, beating California by 44.2 points on the overall affordability baseline.

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Housing

pay about 2.4x more for a home

Texas has the lower median home value, while buying in California costs materially more at the median.

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Rent Pressure

Texas puts less pressure on a median paycheck

Median rent takes a smaller share of household income in Texas than in California, which makes monthly budgeting easier.

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Taxes

Texas has no state income tax

Texas gives residents a cleaner paycheck-level tax advantage, while California still taxes income at the state level.

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Cost stack

California

Overall affordability

Cost of living index: 138.5
Regional price parity: 113.4
Regular gas price: $5.929/gal
Electricity price: 30.29 c/kWh

Housing

Median gross rent: $1,856/mo
Median home value: $693,700
Owner costs w/ mortgage: $3,001/mo
Owner costs w/o mortgage: $882/mo

Taxes

State income tax: 13.30%
State sales tax: 7.25%
Property tax: 0.70%

Income

Median household income: $84,097
Income after median rent: $5,152
Minimum wage: $16.50/hr

Laws

Gun laws: Restrictive
Alcohol system: License State
Marijuana status: Legal

Texas

Overall affordability

Cost of living index: 94.3
Regional price parity: 97.2
Regular gas price: $3.824/gal
Electricity price: 15.69 c/kWh

Housing

Median gross rent: $1,232/mo
Median home value: $294,400
Owner costs w/ mortgage: $2,211/mo
Owner costs w/o mortgage: $703/mo

Taxes

State income tax: None (0%)
State sales tax: 6.25%
Property tax: 1.49%

Income

Median household income: $66,963
Income after median rent: $4,348
Minimum wage: $7.25/hr

Laws

Gun laws: Permissive
Alcohol system: License State
Marijuana status: Medical

What stands out

Texas has lower median home values.
Texas has no state income tax.
Texas has the lower overall cost index.
California has the higher median household income.

Affordability ratios

Owner costs to income

California: 21.0%

Texas: 18.0%

What this means