Texas Salaries 2025
No state income tax with growing tech and energy sectors
Median Household Income
Texas Salary Overview 2025
Texas has emerged as one of America's most attractive states for workers seeking high salaries, low taxes, and affordable living. The state's median household income of approximately $67,000 sits slightly below the national median of $74,580, but the absence of state income tax and moderate cost of living provide substantially greater purchasing power than coastal states.
The Lone Star State's economy is remarkably diverse: energy (oil, gas, renewables) in Houston, technology in Austin, finance and telecommunications in Dallas, and healthcare and manufacturing throughout. This diversity creates resilience—while other states suffer from single-industry dependence, Texas offers opportunities across virtually every sector.
2025 continues Texas's growth trajectory. Austin's tech scene rivals Silicon Valley for startups, Houston's energy sector is expanding into renewables, and Dallas attracts corporate headquarters fleeing high-tax states. Population growth (adding ~1,000 new residents daily) drives housing costs up in major metros but remains far below California or New York levels. For national context, see salary trends 2025 and average US salary.
Texas Salary Snapshot
| Metric | Texas | National Average |
|---|---|---|
| Median Household Income | $67,000 | $74,580 |
| Mean Household Income | $92,000 | $97,300 |
| Per Capita Income | $34,000 | $37,638 |
| State Income Tax | 0% | Varies (0–13.3%) |
| Cost of Living Index | 92 (8% below avg) | 100 |
| Property Tax (avg) | 1.8% (high) | 1.1% |
Texas compensates for zero income tax through higher property taxes (averaging 1.8% vs 1.1% nationally) and sales tax (6.25% state + up to 2% local). However, workers without significant property still save substantially. Use our salary calculator for conversions.
Texas Salaries by Metro Area
| Metro Area | Median Household | COL Index | Key Industries |
|---|---|---|---|
| Austin-Round Rock | $85,000 | 105 | Tech, government, education |
| Dallas-Fort Worth | $75,000 | 98 | Finance, telecom, healthcare |
| Houston-The Woodlands | $70,000 | 96 | Energy, healthcare, aerospace |
| San Antonio | $60,000 | 88 | Military, healthcare, tourism |
| El Paso | $52,000 | 82 | Military, manufacturing, logistics |
Austin-Round Rock-Georgetown
Median Household Income: $85,000
Texas's tech capital and the fastest-growing major metro in the US. Tesla's Gigafactory, Apple's expanded campus, Oracle's relocated headquarters, and countless startups drive salaries approaching Bay Area levels for top talent. Software engineers earn $120,000–$200,000+, with senior roles at major companies reaching $180,000–$300,000 total compensation. The "Silicon Hills" nickname reflects genuine industry concentration. Cost of living has risen significantly but remains 40–50% below San Francisco.
Dallas-Fort Worth-Arlington
Median Household Income: $75,000
America's fourth-largest metro by population and a major corporate headquarters hub. AT&T, American Airlines, Toyota North America, Charles Schwab, and numerous financial services companies provide strong white-collar employment. Tech presence growing rapidly (particularly in Plano and Frisco). Finance professionals earn $80,000–$200,000+, tech salaries approach Austin levels, and healthcare is robust throughout.
Houston-The Woodlands-Sugar Land
Median Household Income: $70,000
Energy capital of the world with expanding diversification. ExxonMobil, Chevron, BP America, Shell, and thousands of energy companies anchor the economy. Petroleum engineers earn $100,000–$180,000+, with executives reaching $250,000–$500,000+. The Texas Medical Center (world's largest) drives healthcare employment—physicians earn $250,000–$500,000+, nurses $70,000–$100,000. NASA's Johnson Space Center adds aerospace. Remarkably affordable housing compared to comparable economic centers.
San Antonio-New Braunfels
Median Household Income: $60,000
Military-heavy economy (multiple Air Force bases, Army installations) combined with healthcare and growing tech. USAA (insurance/banking), H-E-B (grocery), and Valero Energy are major employers. Lower salaries than Austin/Dallas but significantly lower cost of living—excellent value for families. Cybersecurity sector growing due to military connections.
Texas Salaries by Industry
| Industry | Average Salary | Top Metros |
|---|---|---|
| Technology (Software) | $110,000–$180,000 | Austin, Dallas |
| Energy (Oil & Gas) | $90,000–$160,000 | Houston, Midland |
| Energy (Renewables) | $80,000–$140,000 | Houston, Austin |
| Healthcare | $65,000–$130,000 | Houston, Dallas, San Antonio |
| Finance/Banking | $75,000–$150,000 | Dallas, Houston |
| Aerospace/Defense | $85,000–$150,000 | Houston, Dallas, San Antonio |
| Construction/Trades | $45,000–$85,000 | Statewide |
| Manufacturing | $50,000–$90,000 | Houston, El Paso, San Antonio |
Technology Boom
Austin has transformed into a legitimate tech hub rivaling Seattle and attracting talent from Silicon Valley. Major companies (Apple, Google, Meta, Amazon, Tesla, Oracle) have significant Austin presence, with salaries 10–20% below Bay Area but 40–50% lower cost of living—often yielding better purchasing power. Software engineers earn $120,000–$200,000+, with senior/staff roles at major companies reaching $180,000–$300,000 TC. Dallas and Houston tech scenes growing rapidly. See our software engineer salary guide.
Energy Sector
Houston remains the undisputed global energy capital. Traditional oil and gas pays extremely well: petroleum engineers $100,000–$180,000+, geologists $90,000–$150,000, operations managers $120,000–$200,000. The industry is cyclical—booms bring hiring and raises, busts bring layoffs. 2025 shows strong activity with moderate oil prices. Renewable energy (wind, solar) growing rapidly, with engineers earning $80,000–$140,000.
Healthcare
Texas healthcare salaries run slightly below coastal averages but offer excellent purchasing power. The Texas Medical Center in Houston (world's largest medical complex) employs 100,000+ workers. Physicians earn $250,000–$500,000+ depending on specialty, RNs $65,000–$95,000, nurse practitioners $110,000–$140,000. Rural areas face shortages with signing bonuses and loan forgiveness.
Texas Tax Advantage: Real Savings
| Annual Income | CA State Tax | TX State Tax | Annual Savings |
|---|---|---|---|
| $75,000 | ~$3,500 | $0 | $3,500 |
| $100,000 | ~$5,700 | $0 | $5,700 |
| $150,000 | ~$10,400 | $0 | $10,400 |
| $200,000 | ~$15,500 | $0 | $15,500 |
| $300,000 | ~$25,000 | $0 | $25,000 |
| $500,000 | ~$45,000 | $0 | $45,000 |
The Complete Picture
Texas's zero income tax provides substantial savings, particularly for higher earners. However, the full comparison requires considering:
Property taxes: Texas averages 1.8% vs California's 0.75%. A $500,000 home costs ~$9,000/year in Texas property tax vs ~$3,750 in California. This reduces (but doesn't eliminate) the income tax advantage for homeowners.
Sales tax: Texas 6.25–8.25% combined vs California 7.25–10.75%. Similar burden.
Net advantage: For renters and those with moderate homes, Texas tax savings remain substantial—$5,000–$25,000+ annually for typical professionals. High earners with expensive homes see reduced but still positive savings.
Texas Cost of Living Comparison
| Expense | Austin | Dallas | Houston | San Antonio |
|---|---|---|---|---|
| 1BR Apartment (avg) | $1,800 | $1,500 | $1,400 | $1,200 |
| Median Home Price | $550,000 | $380,000 | $340,000 | $300,000 |
| Gas (per gallon) | $2.80 | $2.75 | $2.70 | $2.70 |
| Groceries Index | 95 | 92 | 90 | 88 |
Purchasing Power Comparison
A $100,000 salary in Texas provides equivalent purchasing power to approximately:
San Francisco: $175,000–$185,000
New York City: $155,000–$165,000
Los Angeles: $145,000–$155,000
Seattle: $130,000–$140,000
This substantial advantage explains why Texas attracts workers from coastal states even when nominal salaries are similar or slightly lower. A software engineer earning $180,000 in Austin often enjoys a better lifestyle than one earning $220,000 in San Francisco.
Highest Paying Jobs in Texas 2025
| Occupation | TX Average | Top Metro |
|---|---|---|
| Surgeon | $300,000 | Houston, Dallas |
| Anesthesiologist | $320,000 | Houston |
| Psychiatrist | $280,000 | Dallas, Austin |
| Petroleum Engineer | $145,000 | Houston, Midland |
| Software Engineer (Senior) | $160,000 | Austin |
| IT Manager | $140,000 | Dallas, Austin |
| Financial Manager | $135,000 | Dallas, Houston |
| Lawyer | $130,000 | Dallas, Houston |
| Pharmacist | $125,000 | Statewide |
| Engineering Manager | $150,000 | Austin, Houston |
Texas high earners benefit doubly: strong salaries plus zero state income tax. A surgeon earning $400,000 saves $35,000+ annually vs practicing in California. For more, see highest paying jobs 2025.
Texas Minimum Wage 2025
Texas Minimum Wage: $7.25/hour (federal minimum)
Texas follows the federal minimum wage and has not enacted a higher state minimum. However, market wages significantly exceed this floor in most areas—entry-level retail and food service positions typically pay $12–$16/hour in major metros due to competition.
| Entry-Level Role | Typical Wage | Notes |
|---|---|---|
| Fast Food | $12–$15/hr | Above minimum due to competition |
| Retail | $13–$17/hr | Target, Costco pay $15+ baseline |
| Warehouse (Amazon) | $17–$20/hr | Plus benefits |
| Entry Admin | $15–$18/hr | Office environments |
While the legal minimum remains low, Texas's tight labor market effectively sets higher practical minimums in urban areas. For detailed minimum wage data, see our minimum wage by state guide.
Corporate Relocations Driving Growth
Texas has attracted remarkable corporate relocation activity, particularly from California:
Major Headquarters Moves
Tesla: Relocated headquarters from Palo Alto to Austin (2021)
Oracle: Moved headquarters from Silicon Valley to Austin (2020)
Hewlett Packard Enterprise: Relocated to Houston (2020)
Charles Schwab: Moved headquarters to DFW (2020)
Caterpillar: Relocated to DFW (2022)
Toyota North America: Moved to Plano (2017)
Major Expansions
Apple: $1B Austin campus, 15,000+ employees
Google: Expanding Austin presence significantly
Meta: Austin engineering hub
Amazon: Major fulfillment and AWS presence across Texas
Samsung: $17B semiconductor fab in Taylor (near Austin)
These moves create jobs across all levels—from executives to administrative support—and signal continued Texas economic growth.
Frequently Asked Questions
How much do I save with no state income tax?
Depends on income. $75K earner saves ~$3,500 vs California, $150K saves ~$10,400, $300K saves ~$25,000+. Property taxes partially offset this for homeowners but renters capture full savings.
Is Austin too expensive now?
Austin has become Texas's most expensive city, with housing costs roughly doubling since 2020. However, it remains 40–50% cheaper than Bay Area and offers excellent tech salaries. $100K income provides comfortable single living; families typically need $150K+ household for middle-class lifestyle with homeownership.
What's the job market like in 2025?
Strong across sectors. Tech continues hiring despite some national slowdowns. Energy sector healthy with moderate oil prices. Healthcare faces nursing shortages (opportunity for workers). Construction booming due to population growth. Unemployment remains below national average.
Should I move from California to Texas?
Common calculation: take your California salary, subtract 10–15% for typical Texas adjustment, add back 6–10% tax savings, then factor in 30–50% lower housing costs. Many workers come out significantly ahead. Career considerations matter—Austin tech matches California for many roles; other fields may see smaller Texas job markets.
What about the weather?
Hot summers across Texas (100°F+ common), mild winters in south Texas, occasional ice storms in Dallas. Houston humid year-round. Austin/San Antonio moderate. Climate is legitimate quality-of-life factor—air conditioning essential, outdoor activities seasonal.