Is $200K A Good Salary In Texas?

With its low cost of living and lack of state income tax, Texas is an appealing place for many professionals looking to stretch their salaries. But is $200,000 actually considered a good salary there compared to other parts of the country? The answer depends on your lifestyle, where in Texas you live, and how you define a “good” salary.

In short: $200k is well above the median household income in Texas and would generally be considered a very good salary in most parts of the state, especially for single-income households. However, in some metro areas like Austin, it may only qualify as middle class for families.

Cost of Living in Texas

When considering whether $200k is a good salary in Texas, it is important to take into account the cost of living in the state. Overall, Texas has a relatively low cost of living compared to many other states.

Housing, goods/services cost 13% less than national average

One of the main reasons why the cost of living in Texas is lower is the affordable housing options. The cost of housing in Texas is approximately 13% less than the national average. This means that individuals earning $200k in Texas may be able to afford a larger and more comfortable home compared to other states with higher housing costs.

In addition to housing, goods and services in Texas are also relatively cheaper. This includes groceries, transportation, healthcare, and entertainment. Residents can enjoy a lower overall cost of living, allowing them to stretch their income further.

Major metros like Houston and Dallas are more expensive

While Texas as a whole has a lower cost of living, it is important to note that major metropolitan areas like Houston and Dallas tend to be more expensive. This is due to higher housing costs and a higher demand for goods and services in these cities.

Individuals earning $200k in these areas may still have a comfortable lifestyle, but their purchasing power may be slightly diminished compared to smaller cities or rural areas in Texas.

No state income tax saves residents thousands per year

One major advantage of living in Texas is the absence of state income tax. This means that residents can keep more of their hard-earned money in their pockets. For someone earning $200k, this can result in significant savings.

It is estimated that Texas residents save thousands of dollars per year by not having to pay state income tax.

Salaries and Income Levels in Texas

When considering whether a salary of $200k is good in Texas, it’s important to understand the overall income levels in the state. According to the U.S. Census Bureau, the median household income in Texas is around $63,000.

This means that half of the households earn more than this amount, while the other half earns less.

Median household income is $63k in Texas

The median household income serves as a benchmark for understanding the overall economic situation in an area. In Texas, a household with an income of $200k is significantly above the median. This indicates that individuals earning this salary are well above average in terms of income.

$200k is in top 10% of incomes statewide

Another way to gauge the value of a $200k salary in Texas is by comparing it to the income distribution in the state. According to data from the Texas Workforce Commission, a salary of $200k places an individual in the top 10% of income earners in the state.

This means that only a small portion of the population earns at or above this level.

Tech hub Austin has significantly higher incomes

It’s worth noting that income levels can vary within different cities and regions of Texas. For example, Austin, often referred to as a tech hub, has a higher cost of living and generally higher incomes compared to other parts of the state.

In fact, according to a report from the Austin Chamber of Commerce, the average annual wage in Austin is around $66,000, which is higher than the statewide median income.

Lifestyle Supported by $200k Salary

Living comfortably is a top priority for many individuals and families, and a $200k salary in Texas can certainly support a desirable lifestyle. Let’s take a closer look at how this salary can impact various aspects of one’s life.

Can afford a nice house in a midsize city or suburbs

With a $200k salary, individuals and families can afford to purchase a beautiful home in a midsize city or the suburbs. Texas offers a variety of cities with affordable housing options, allowing individuals to find their dream home without breaking the bank.

Whether it’s a charming bungalow or a spacious family home, a $200k salary can go a long way in securing a comfortable living space.

Enough for comfortable living in major metros if dual income

In major metropolitan areas like Dallas, Houston, or San Antonio, the cost of living can be higher compared to midsize cities. However, with a dual-income household, a $200k salary can still provide a comfortable standard of living.

It’s important to consider the combined income of both partners, as this can greatly impact the financial flexibility and ability to afford a desirable lifestyle in these bustling cities.

May only be middle class in Austin

Austin, the capital of Texas, has experienced rapid growth in recent years. With this growth comes increased living costs, making it a more expensive city to reside in. While a $200k salary can still provide a comfortable life, it may only place individuals or families in the middle-class bracket in Austin.

It’s important to consider other factors such as housing prices, education costs, and healthcare expenses when determining the overall affordability of living in this vibrant city.

Purchasing Power vs. Other States

Goes much further than coastal states like California

When it comes to purchasing power, a $200k salary in Texas can go much further compared to coastal states like California. The cost of living in Texas is generally lower than in California, especially when it comes to housing.

According to Zillow, the median home price in Texas is around $200,000, while in California, it’s over $700,000. This means that with a $200k salary, you can afford a more spacious and comfortable home in Texas compared to what you might get in California.

Additionally, other expenses like groceries, transportation, and healthcare also tend to be more affordable in Texas compared to coastal states. This means that your $200k salary can stretch further, allowing you to enjoy a higher standard of living and potentially save more money for the future.

Similar lifestyle to other central/southern states

While $200k may not be considered a high salary in some high-cost cities like New York or San Francisco, it can still provide you with a comfortable lifestyle in Texas. Texas offers a diverse range of cities and towns, each with its own unique charm and amenities.

Whether you prefer the bustling city life of Houston or the relaxed atmosphere of Austin, $200k can allow you to enjoy a similar lifestyle to other central and southern states.

With this salary, you can afford to dine at nice restaurants, take vacations, and participate in recreational activities without feeling financially strained. Texas is known for its vibrant cultural scene, outdoor activities, and affordable entertainment options, ensuring that you can make the most of your salary and enjoy a fulfilling lifestyle.

Less purchasing power than low-cost states like Ohio

While $200k can provide a comfortable lifestyle in Texas, it’s important to note that the purchasing power may not be as high as in low-cost states like Ohio. According to the Missouri Economic Research and Information Center, Texas ranks 23rd in terms of its cost of living index, while Ohio ranks 8th.

This means that the cost of goods and services in Ohio may be lower compared to Texas.

However, it’s important to consider other factors as well, such as job opportunities, quality of life, and overall economic conditions, when deciding on the attractiveness of a particular state. Texas offers a thriving economy, diverse industries, and a strong job market, which can offset the slightly lower purchasing power compared to states like Ohio.


While a $200k salary would be considered well above average in Texas, the state’s relatively low cost of living means it may not go quite as far as it would in some other parts of the country. Overall, it provides a very comfortable living, especially for dual income households, but those looking for an ultra-affluent lifestyle may need to relocate to a global city like New York or San Francisco.

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