Living in Austin in 2025 presents a unique financial picture. With a Cost of Living Index of 99 (where 100 is the national average), it is considered more affordable than the typical US city. Austin combines a vibrant cultural scene with the financial benefit of 0% state income tax. While housing costs have risen, it remains more affordable than coastal tech hubs. This guide breaks down the real costs of housing, food, and transportation to help you decide if Austin is right for your budget.
Cost of Living in Austin, TX (2025 Edition)
Live Tax-Free in the Live Music Capital
Data Verified: Jan 2026 • IRS • BLS • Zillow
Interactive Lifestyle Calculator
Adjust the numbers below to match your actual situation in Austin.
Lifestyle & Salary AdjusterDefaults
$
Estimated Monthly Net$5,200
Tax Rate
17% (Fed + Austin State)
TightBalancedWealthy
Thriving (Score: 100)
ExcellentYou have plenty of room for savings and fun!
Monthly Costs for Austin
$
$
$
$
Needs Ratio
45%
Basics vs Net Income.
Goal: <50%
Leftover / Mo
$2,670
For Savings, Debts, Fun.
Try to invest this!
What do these numbers mean?
- Needs Ratio: Percentage of your net pay going to essentials. Lower is better.
- Leftover: Your "Freedom Money". This is what you have for lifestyle, travel, and building wealth.
Want to see how other salaries compare?Scroll Down for Benchmarks & City Comparisons
Advertisement
See Detailed Salary Breakdowns for Austin
🏛️ The Tax Bite
Taxes play a huge role in your take-home pay. One of the massive perks of Austin is the 0% State Income Tax. Fortunately, there is no verified local city income tax levied directly on employees in Austin, simplifying your paycheck calculations slightly.
Advertisement
Expense Breakdown (Monthly)
Median Rent (1bd)
$1,700
Groceries
$350
Utilities
$180
Transport
$100
🏠 Housing Reality
Housing is rightfully the biggest concern for newcomers. The median rent for a 1-bedroom apartment in Austin currently hovers around $1,700/month. For families or those needing more space, a 3-bedroom unit jumps to approximately $2,900.
To put this in perspective, you would need a net monthly income of roughly $5,100 to adhere to the standard "30% rule" for housing affordability.
🛒 Daily Expenses & Transport
Beyond rent, daily expenses in Austin add up. Expect to budget around $350 monthly for groceries per person, and $180 for basic utilities (electricity, heating, cooling, garbage).
Transportation costs, estimated at $100, can vary significantly depending on whether you rely on public transit or own a vehicle. Transit costs are relatively moderate compared to other major metros.
Compare with Other Cities
Frequently Asked Questions
Is Austin expensive to live in?
Compared to many major metros, Austin is relatively affordable with a Cost of Living index of 99.Housing is the primary driver of these costs.
What is a good salary in Austin?
To live comfortably in a 1-bedroom apartment (following the 50/30/20 rule), a single person should aim for a gross salary of at least $61000. Families or those wanting to save aggressively may need significantly more.