Dallas Cost of Living Calculator

Is it cheaper to live in Texas than California?

For most relocating families, yes, Texas is cheaper than California, mainly because Texas has no state income tax while California's top brackets reach 13.3 percent. The honest catch is that Texas property tax and home insurance run higher, so the real savings depend on your income, your home value, and the suburb you choose. The calculator above nets all of it out for your situation.

The reason a simple "you'll save" headline is misleading is that the win and the cost live in different line items. Your income tax drops to zero the day you become a Texas resident. At the same time, your property tax rate roughly doubles compared to California's effective rate, and your homeowner's insurance jumps because Texas is one of the highest insurance states in the country. A high earner with a modest home usually comes out well ahead. A modest earner buying an expensive home can come out behind. That is why this tool gives you a net number instead of a feel good number.

Your no state income tax savings

Texas is one of nine states with no individual income tax. For a family relocating from California, New York, Illinois, or another high tax state, this is the single biggest line in your favor. The calculator applies the full 2026 state brackets, standard deduction, and exemptions for your origin state and filing status, then compares them against Texas zero. A married household earning $200,000 leaving California keeps roughly $10,000 a year that used to go to Sacramento. Leaving New York, the figure is similar. Leaving a flat tax state like Illinois at 4.95 percent, it is smaller but still real.

Want the deeper picture, including how the no income tax math interacts with property tax over time? Read the full California versus Texas comparison and our cost of living in Dallas guide.

The honest part: where Texas costs more (property tax and insurance)

This is the section other calculators leave out. Two Texas costs go up, and a trustworthy tool names them on the same screen as the savings.

Property tax

Texas has no income tax partly because it leans on property tax instead. DFW suburb combined rates run between about 1.64 percent and 1.96 percent of value per year, depending on the city, the school district, and any municipal utility district or public improvement district assessments in newer master planned neighborhoods. Compare that to California's roughly 0.71 percent effective rate. The good news for families is the Texas homestead exemption, which removes $140,000 of value from your school district taxes, plus extra exemptions for seniors and disabled veterans. The calculator applies these for you.

Home insurance

Texas is among the highest home insurance states in the nation, with typical annual premiums around $4,000 to $4,900, driven by hail, wind, and severe storms. This is the insurance analog to the property tax story, and it belongs in your monthly budget from day one. Your premium scales with your home value and your exact risk, so the calculator shows it as a range, never a single fixed figure.

Summer electricity

Texas heat means heavy air conditioning use and high summer electric bills. Texas also runs a deregulated retail electricity market, so you choose your provider and plan. Budget for higher cooling costs from June through September. We surface this in your results so it does not surprise you after the move.

What your money gets you across DFW

One of the most powerful moments in a relocation is seeing what your budget becomes in a market priced very differently from the coasts. Instead of pretending you would buy a same-dollar home, the calculator shows a typical home in each named DFW suburb, from value suburbs like McKinney, Allen, and Plano to premium ones like Southlake and Colleyville, with the real property tax and monthly payment on each. Many families discover their money buys substantially more home in a value suburb, which is often what makes the higher property tax and insurance worth it, and you do not have to choose the flashiest suburb to come out ahead.

A note on square footage: we describe each suburb's typical home using its actual median price and median size, but we do not convert your budget into a square footage, because price per square foot is higher on smaller homes than on larger ones, which would mislead. The honest comparison is your budget against the real median home in each suburb.

Ready to go suburb by suburb? Explore the full DFW suburb guide or let the 4-Lever Suburb Matcher narrow the list to the suburbs that fit your family.

Your estimated monthly payment: principal and interest versus all in PITI

The calculator shows your mortgage two ways on purpose. The first number is principal and interest only, the precise, apples to apples figure you can compare from one home to the next. The second is your estimated all in monthly payment, or PITI, which adds the Texas property tax and the insurance estimate on top so you see what you would actually budget. We label the PITI an estimate because property tax varies by exact address and exemptions, newer suburbs may carry MUD or PID assessments, insurance is quote driven, and HOA dues are not included unless you add them.

Moving from California, New York, or Illinois to Dallas

The calculator serves all 50 states and DC, but the most common DFW relocation routes are from California, New York, and Illinois. From California, the income tax savings are the headline and the equity translation is dramatic. From New York, the no income tax win is similar and you escape some of the highest property taxes in the country, so DFW can actually be a property tax improvement depending on your origin county. From Illinois, you trade a 4.95 percent flat income tax and very high property taxes for no income tax and a different property tax structure. Enter your real numbers above to see which of these applies to you.

What salary do you need to live comfortably in DFW?

According to the MIT Living Wage Calculator for the Dallas Fort Worth metro, a single adult needs about $50,205 a year to cover basic costs, and roughly $96,970 to live comfortably. A two adult, two child family needs about $101,852 for the basics and around $214,490 to live comfortably. Because Texas has no state income tax, more of that gross salary stays in your pocket than it would in a high tax state, which is exactly what the income tax line in the calculator measures.