Austin guide

How much does it cost to live in Austin?

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This article is part of our Moving to Austin guide.

Last updated October 19, 2026

A single adult with no kids needs about $49,300 a year before taxes to cover basic costs in Austin, according to MIT’s Living Wage Calculator for Travis County. That works out to $23.69 an hour. Rent is the biggest line, and it’s the good news: the average 1-bedroom is about $1,305 a month, down 10% from a year ago. Texas has no state income tax, but sales tax is 8.25% and property taxes are high, so you pay through other channels.

Living wage, 1 adult$49,279/yrMIT, Travis County, Feb 2026
Average 1-bedroom$1,305/moZumper, Oct 2026, down 10% YoY
State income tax$0Sales tax 8.25% instead
Bus monthly cap$41.25CapMetro, through Jan. 9, 2027

What does a basic budget look like in Austin?

MIT’s Living Wage Calculator estimates what it takes to cover basic needs with no savings or extras. For one adult with no children in Travis County, it lands at $49,279 a year before taxes (updated February 15, 2026). Here’s how that breaks down. The monthly column is the annual figure divided by 12.

ExpensePer yearPer month (approx.)
Housing$18,213$1,518
Transportation$8,465$705
Taxes$7,237$603
Food$4,159$347
Other necessities$4,067$339
Medical$3,075$256
Civic (community and recreation)$2,583$215
Internet and mobile$1,479$123
Total before taxes$49,279$4,107

Two things stand out. Housing eats more than a third of the budget. And transportation is the second-biggest cost, because MIT assumes you drive. In Austin, that’s realistic for most people. If you can live car-light, your number can drop a lot.

How much is rent in Austin right now?

Zumper’s Austin page, updated October 18, 2026, shows these averages:

  • Studio: $1,369 a month, down 5% from a year ago.
  • 1-bedroom: $1,305 a month, down 10%.
  • 2-bedroom: $1,650 a month, down 14%.

Why are rents falling? Austin built apartments faster than almost anywhere. Marcus & Millichap estimates the city’s apartment stock grew about 33% from 2020 through 2025, according to a September 2026 CRE Daily report. Vacancy peaked at 15.8% in late 2024. Landlords responded with deals: in July 2026, 37% of stabilized Austin units offered concessions, the highest share among the 50 largest U.S. markets, per RealPage data in the same report. The slide may be ending. Northmarq measured a small rise in effective rents in the second quarter of 2026, the first after 12 straight quarterly drops.

For you, that means room to negotiate. Ask about free weeks, waived fees and the effective rent after discounts. Our guide to how renting works in Austin covers deposits, fees and lease rules. To compare large buildings by size, age and amenities, browse our sister site, AustinApartmentBuildings.com.

How do taxes work in Austin?

  • No state income tax. Texas doesn’t tax wages. You still pay federal income tax and payroll taxes.
  • Sales tax is 8.25%. That’s 6.25% to the state, 1% to the city and 1% to a special district, which in most of Austin is CapMetro (Kintsugi, September 2026). A few ZIP codes split the local share differently, but the total is 8.25% across Austin.
  • Property taxes are high. For a home inside city limits and Austin ISD, the combined rate for the 2025-26 tax year was about $2.05 per $100 of value, adding up the school district, city, county, Austin Community College and Central Health (Neuhaus Realty Group, March 2026). In August 2026, the City Council raised the city’s own rate to about 58 cents per $100 for the coming year, the most allowed without a vote.

Renters don’t get a property tax bill, but landlords build it into rent. That’s part of why the “no income tax” savings don’t go as far as people expect. Your paycheck stretches further, but you give some of it back at the register and through rent.

What do utilities cost?

Most of Austin gets electricity from Austin Energy, a city-owned utility. Unlike Dallas or Houston, you don’t shop for an electricity provider. City of Austin Utilities sends one bill for electric, water, trash and city fees. Suburbs like Round Rock or Pflugerville may use different providers.

  • Electricity: The 2026-27 city budget included a 3.1% Austin Energy increase, about $3.66 a month for the average home (CBS Austin, August 2026). Summer bills run highest because of air conditioning.
  • Water and wastewater: Austin Water’s 2027 budget put the typical single-family water and wastewater bill at about $108 a month, up from about $100 (Austin Water, July 2026). Apartment renters usually use less, and many pay water through the landlord.
  • Trash, drainage and other fees: These also went up. The city estimates a typical ratepayer will pay about $14.34 more a month for all utilities and fees combined under the new budget (City of Austin, August 2026).

Add internet and a phone plan. MIT budgets $1,479 a year, or about $123 a month, for both.

How much does it cost to get around?

With a car

  • Insurance: Insurify puts the Austin average at about $221 a month for full coverage and $127 for liability-only, both above the Texas average (October 2026). Your record, age and ZIP code move this a lot.
  • Gas: Prices change week to week, so check today’s Austin average on AAA’s Texas gas prices page.
  • Registration: New residents have 30 days to register. Travis County requires an emissions inspection first. The state fee is $50.75 plus a $1 TexasSure charge and county fees, and most new residents pay a $90 new-resident tax (TxDMV).

That’s before a car payment, parking, tolls and repairs. MIT’s $8,465 a year for transportation is a reasonable floor for one car.

Without a car

CapMetro is cheap. A local bus ride is $1.25, and MetroRail or express rides are $3.50. If you pay with the Umo app or a reloadable card, fares stop at $2.50 a day and $41.25 a month (CultureMap Austin, July 2026). Fares go up in January 2027: local rides to $1.50 and commuter rides to $4.00 (CBS Austin, September 2026). The local caps rise to $3.00 a day and $49.50 a month at the same time (CapMetro). Light rail is planned but not running yet. See how public transit works in Austin and whether you need a car.

How much will you spend on food?

MIT budgets $4,159 a year for one adult in Travis County, or about $347 a month. That’s a cook-at-home grocery budget, not eating out.

How does Austin compare with other big cities?

Using the same MIT calculator for one adult, no children (all updated February 15, 2026):

County (city)Living wage per hourNeeded per year, before taxesHousing per year
New York County (Manhattan)$38.21$79,469$35,525
Fulton County (Atlanta)$26.73$55,599$19,875
Cook County (Chicago)$25.44$52,909$17,405
Travis County (Austin)$23.69$49,279$18,213
Dallas County (Dallas)$23.31$48,489$17,805
Harris County (Houston)$21.63$44,989$14,744

Austin is the priciest of the three big Texas metros, but only slightly above Dallas. It’s below Atlanta and Chicago overall and needs about 38% less income than Manhattan by this measure. One surprise: MIT’s housing estimate for Austin is higher than Chicago’s. Austin’s lower total comes from the other lines in the budget.

Austin ranks 3rd of the nine cities in our Big City Moving Index on how easy it is to afford alone: a typical one-bedroom takes about 32% of the income MIT says one adult needs there. The index puts rent, the income you need, minimum wage, taxes and transit for all nine cities side by side.

What do jobs in Austin pay?

The average wage across all jobs in the Austin-Round Rock-San Marcos metro was $35.85 an hour in May 2025, about $74,600 a year for full-time work. The national average was $33.54 (BLS, August 2026). Pay varies widely by field:

  • Computer and math jobs: $58.73 an hour on average.
  • Healthcare practitioners: $48.95.
  • Office and administrative support: $25.20.
  • Healthcare support: $20.67.
  • Food prep and serving: $16.50.

Compare those to MIT’s $23.69 living wage. Many service jobs pay less than what one adult needs, which is why roommates are common. Texas minimum wage is still the federal $7.25. More in our Austin job market guide, and start with moving to Austin for the big picture.

Frequently asked questions about the cost of living in Austin

What salary do you need to live in Austin?

For one adult with no kids, MIT puts the bare-bones figure at $49,279 a year before taxes. To save money or live alone in a newer building, plan on more.

Is Austin cheaper than Dallas or Houston?

No. By MIT’s measure, Austin costs slightly more than Dallas County and about $4,300 a year more than Harris County (Houston). Austin’s falling rents have narrowed the gap.

Does no state income tax make Austin cheap?

It helps, but Texas makes up for it with an 8.25% sales tax and high property taxes. Renters pay property taxes indirectly through rent.

Can you live in Austin without a car to save money?

Some people do, especially near downtown, UT and major bus lines. With the $41.25 monthly fare cap, transit costs far less than car insurance alone, but service is thin in many suburbs.

Sources

Go Big City Team
Author: Go Big City Team

More Austin questions

Back to the Austin guide →
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Next step: see the full Moving to Austin guide for rent, costs, transit, weather, jobs and neighborhoods in one place.

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