Austin–Round Rock–Georgetown
Austin, Texas — salaries, cost of living & taxes (2026)
Austin is the only Texas metro that genuinely competes with the West Coast tech ecosystem on salary — and it's the only one where housing costs come close to matching it. The state capital is also home to the University of Texas, a tier-1 venture capital scene, and a remote-friendly creative class that arrived during the COVID-era boom and (mostly) stayed.
The job market
Tech (Apple, Tesla, Indeed, Oracle, Google), state government, university and academic medical center jobs, plus a film and music economy that punches above its weight. Senior engineering roles routinely break $300k total comp at established firms; startup pay tracks Bay Area roughly 10–15% lower for the same level.
Top industries: Technology, State government, Higher education, Healthcare, Film & music.
Housing & cost of living
Austin's median home price has fluctuated heavily since 2022 but remains above $560k inside the city — the highest among Texas's largest cities. Property tax effective rates around 1.97% mean a typical homeowner pays $11,000+/year on a $560k home. Rent in central neighborhoods (Downtown, East Austin, Mueller) regularly exceeds $2,500/month for a one-bedroom.
Taxes in Austin
No state income tax means a $200k Austin offer is meaningfully better post-tax than a $200k Seattle offer (Washington has no income tax either, but its 7% capital gains tax above $262k starts to bite for tech RSU holders). Sales tax is 8.25%; Travis County property tax is in the high end of TX averages.
Should you move here?
Best for tech workers, founders, and high-earning remote workers who want a real cultural scene and don't mind the heat or traffic. Less compelling for first-time homebuyers under $130k income — you'll be priced out of the central core.
What people love: No state income tax, strong six-figure tech salaries, and a young, college-educated workforce drive most relocations.
What to watch out for: Home prices and property taxes are the highest among major Texas metros, and traffic on I-35 is notorious.
Estimate your Austin take-home
Texas charges $0 state income tax, but your federal bill is real. Drop in your salary to see what you keep:
Estimates use 2026 projected federal brackets, the standard deduction for your filing status, and current FICA rates. Texas has no state income tax, so your gross is not reduced by any state withholding.
Frequently asked questions
What's the median household income in Austin?
The median household income in Austin is approximately $91,500. That's a Census ACS estimate; individual neighborhoods vary widely.
What's the property tax rate in Austin?
Austin's effective property tax rate is approximately 1.97% — combined city, county, school district, and special-district rates. On a $400,000 home, that's roughly $7,880 per year. File for the homestead exemption to cap annual increases at 10% and lower the school district appraised value.
Does Austin have a city or local income tax?
No. Texas has no state income tax, and no Texas city levies a local income tax on wages. Sales tax in Austin is 8.25%.
How does Austin compare to other Texas cities for cost of living?
Austin's cost of living index is approximately 119 (U.S. average = 100). That's above-average, driven primarily by housing.
Is Austin a good place for remote workers?
Austin works well for remote workers because Texas charges no state income tax. If you work for an out-of-state employer from Austin, your wages are Texas-source and untaxed at the state level — except for cases involving New York's convenience-of-employer rule. See our remote worker guide for details.