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Living in Texas · 2026

Is $38,000 enough to live in Texas?

Single adult · TX · 2026 tax brackets · Real cost-of-living data

Statewide verdict:Manageable

Monthly take-home

$2,720

Avg monthly expenses

$2,407

Avg monthly surplus

$313

Savings potential

~12%

After-tax take-home in Texas

Gross salary$38,000
Federal income tax− $2,454
State income tax− $0
Social Security− $2,356
Medicare− $551
Annual take-home$32,639
Effective tax rate14.11%

How $38,000 feels in Texas cities

Rent: HUD FMR 2026 · Food: USDA Low-Cost Plan × COL · Transport/Utilities/Healthcare: BLS CES × COL

Houston

COL index: 1.08× national avg

Manageable
Rent (1BR)
$1,400
Food
$440
Transport
$189
Utilities
$178
Healthcare
$216
Total: $2,423/mo
Surplus: $297/mo
Rent burden: 51.5% — Unaffordable (> 50%)
Full Houston analysis →

Dallas

COL index: 1.13× national avg

Manageable
Rent (1BR)
$1,500
Food
$462
Transport
$198
Utilities
$186
Healthcare
$226
Total: $2,572/mo
Surplus: $148/mo
Rent burden: 55.1% — Unaffordable (> 50%)
Full Dallas analysis →

Austin

COL index: 1.28× national avg

Very tight
Rent (1BR)
$1,800
Food
$519
Transport
$224
Utilities
$211
Healthcare
$256
Total: $3,010/mo
Surplus: $-290/mo
Rent burden: 66.2% — Unaffordable (> 50%)
Full Austin analysis →

San Antonio

COL index: 1.00× national avg

Comfortable
Rent (1BR)
$1,250
Food
$418
Transport
$175
Utilities
$165
Healthcare
$200
Total: $2,208/mo
Surplus: $512/mo
Rent burden: 46.0% — High (35–50%)
Full San Antonio analysis →

Fort Worth

COL index: 1.08× national avg

Manageable
Rent (1BR)
$1,400
Food
$449
Transport
$189
Utilities
$178
Healthcare
$216
Total: $2,432/mo
Surplus: $288/mo
Rent burden: 51.5% — Unaffordable (> 50%)
Full Fort Worth analysis →

El Paso

COL index: 0.85× national avg

Comfortable
Rent (1BR)
$950
Food
$387
Transport
$149
Utilities
$140
Healthcare
$170
Total: $1,796/mo
Surplus: $924/mo
Rent burden: 34.9% — Manageable (25–35%)
Full El Paso analysis →

50 / 30 / 20 Budget Planner

Based on your monthly take-home of $2,720 ($32,640/yr)

Needs 50%Wants 30%Savings 20%
Needs50%

$1,360

per month

  • ›Rent / mortgage
  • ›Groceries
  • ›Utilities
  • ›Insurance
  • ›Minimum debt payments
  • ›Transportation
Wants30%

$816

per month

  • ›Dining out
  • ›Streaming services
  • ›Gym
  • ›Hobbies
  • ›Travel
  • ›Shopping
Savings20%

$544

per month

  • ›Emergency fund
  • ›401(k) / IRA
  • ›Investments
  • ›Down payment fund
  • ›Debt payoff (extra)

Needs / year

$16,320

Wants / year

$9,792

Savings / year

$6,528

Salary Intelligence

Financial pressure in Houston

Rent alone would take 51% of take-home income. This salary creates significant financial pressure in this city — a $56,000 annual income or lower rent is needed to reach affordability.

Lifestyle score: 3.5/10 (Challenging)

Lifestyle Assessment

A $38,000 salary supports a challenging single lifestyle in Houston, Texas. After essential expenses, approximately $297/month (~11% of take-home) is available for savings or discretionary spending.

Purchasing Power

Houston is near the national cost-of-living average (index: 1.08). $38,000 here is roughly equivalent to $65,093 in San Francisco or $30,963 in an affordable city like Birmingham.

State & National Benchmark

$38,000 is 11% below the Texas individual median of $42,500. Consider negotiating a higher salary or exploring higher-paying roles in this state.

State individual median

$42,500

-11%

State household median

$73,035

-48%

Tax reduction strategies

Maximize 401(k) Contributions — Up to $5,170 in federal tax (22% bracket)
Contribute to a Traditional IRA — Up to $1,540 in federal tax (22% bracket)

$38,000 vs. Texas income benchmarks

Individual median (Texas)

$42,500

-11% vs. this salary

Household median (Texas)

$73,035

-48% vs. this salary

Source: US Census Bureau ACS 2023

Related salary insights

Explore other salary levels in Texas

$40,000$60,000$100,000$150,000$200,000$300,000
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Reviewed by

Finance Editor

CPA, 10+ years in personal finance

Data Sources

Data updated monthly using government datasets.