New to America: What is the Average Monthly Cost of Living in Texas?
Texas shares a border with Mexico, so it’s no surprise that the state has a significant population of immigrants from its neighboring country and others. It’s estimated that nearly two million immigrants call Texas home.
And while Texas may be a gateway to other states, many of the newly arrived choose to make the Lone Star State their new home. So we thought it would be helpful to take a look at the average monthly cost of living in Texas.
We’ll explain what cost of living (COL) is, some common monthly expenses, and where you can find the lowest COL in Texas.
Cost of living defined
Like a lot of things, the cost of living varies between states. The state with the highest cost of living is Hawaii, and the lowest is Mississippi.
Cost of living represents the amount of money needed to cover necessary expenses to maintain a certain standard of living in a particular place and time. Necessary expenses include:
Housing
Utilities
Food
Transportation
Healthcare
Taxes
Education
Clothing
Entertainment
A good way to compare the COL between places is to look at the COL index. This number can tell you how expensive or inexpensive a place is in relation to the national average. If a place has a COL index below 100, that means it’s less expensive than the national average. If the COL index is above 100, it’s more expensive than the national average.
For 2022, Texas’s COL index is 94.2, making it the 15th lowest COL state in the U.S. Compare that to Hawaii, which has the highest COL index at 193.3, and Mississippi, with the lowest COL index at 83.3.
Common monthly expenses in Texas
The average monthly cost of living in Texas is $3,305, which is $39,661 per year. Here are some of the most common monthly expenses broken down:
Housing: $900-$1,641
Electricity: $132
Gas (for the home, not vehicles): $111
Cable and internet: $115
Water: $37
Groceries and food per person: $275.75
Transportation: $426-$1,158
Healthcare per person: $482
Childcare per child: $816-$1,258
One expense you won’t have in Texas is individual income tax. Texas is one of nine states that that doesn’t have them, a big reason some people choose to settle there.
Lowest cost of living cities in Texas
If you want to live in the Lone Star State but without the hefty price tag, these are the most affordable cities in Texas:
Harlingen: COL Index of 77.3
McAllen: COL Index of 77.7
Amarillo: COL Index of 81.7
Upwardli can help
While there are a lot of differences between regions, states, and cities in the U.S., we all use the same financial system. So no matter where you decide to live, personal finance is the same. But you still have to learn a new system which can be overwhelming.
Upwardli to the rescue! Upwardli was created to help new immigrants understand and set up their financial lives in America. We can help you learn how our financial system works and build a credit history, an essential aspect of American finance. Wherever you are, Upwardli is here for you!
