Texas Savings Rate Calculator — Updated 2026

Texas (TX) · No state income tax · Property tax: 1.80% · Median home (ZHVI): $295,000

As of Apr 2026 · Sources: Zillow ZHVI, Tax Foundation, Census ACS, Freddie Mac PMMS

Written by Jere Salmisto·Reviewed by CalcFi Editorial·Methodology
TL;DR

Texas cost-of-living index is 97.1 (US = 100). Median home: $295,000, property tax 1.80%, no state income tax (2026).

Source: Zillow ZHVI / Tax Foundation, 2026-04-19

Your savings rate — the percentage of gross income you save — is the most important factor in building wealth. In Texas, with no state income tax, more of your gross income reaches your bank account, making it easier to hit a 20%+ savings rate target. The cost of living index of 97.1 determines your expense floor — moderate living costs give you more room to save aggressively. Target at least 20% for financial independence, adjusting for Texas's specific cost profile.

Texas Financial Snapshot (2026) — Savings Rate Calculator

Median income + cost-of-living scale the savings rate for the savings rate calculator in Texas. Every row cites a primary public dataset. Numbers reflect the most recent vintage available; refresh cadence is documented in the methodology.

MetricTexasSource
Median home value (ZHVI)$295,000[1]
Minimum wage$7.25/hr[2]
Median household income$81,490/yr[3]
Top marginal income tax rateNone[4]
Cost-of-living index (BEA RPP)97.1 (US = 100)[5]

How the Savings Rate Calculator Math Works Under Texas Law

The Savings Rate Calculator runs a well-known formula (principal × rate, discounted cash flow, amortization, or equivalent) client-side and layers on Texas's tax and cost-of-living inputs. State-specific numbers — brackets, exemptions, and averages — come from public federal / state datasets cited in the sources section.

★Reality Score— Bigger picture for Texas — score your full money snapshot, free.See my full picture →
3-minute readout across rent, debt, and savings — not a credit pull.

Worked Examples: Savings Rate Calculator in Texas Cities

Same formula, different inputs. Each city name links to its own pSEO page where the calculator is pre-filled with local medians.

CityMedian homeMedian rentHUD FMR 2BRMedian income
Houston, TX$307,493$1,610/mo$1,475/mo$80,458
Dallas, TX$364,734$1,645/mo$1,525/mo$87,155
San Antonio, TX$279,026$1,391/mo$1,275/mo$74,297
Austin, TX$427,045$1,579/mo$1,450/mo$97,638
Fort Worth, TX$330,000$1,354/mo$1,250/mo$66,200

Sources: Zillow ZHVI + ZORI[1], HUD FMR[2], Census ACS[3], Freddie Mac PMMS[4].

How Texas Compares to Neighboring States

Moving one state over changes the savings rate numbers. Compare median home value (Zillow ZHVI), top marginal income tax rate, effective property tax rate, and the BEA all-items Regional Price Parity across Texas and its border states.

StateMedian homeTop inc taxProp tax rateRPP (US=100)
Texas (this page)$295,000None1.80%97.1
Arkansas side-by-side$198,0003.90%0.64%86.8
check Louisiana$215,0003.00%0.55%88.7
New Mexico equivalent$305,0005.90%0.80%91.0
Oklahoma equivalent$205,0004.75%0.90%88.7

Sources: Zillow ZHVI[1], state Departments of Revenue / Tax Foundation[2], Tax Foundation property taxes[3], BEA Regional Price Parities[4].

What Changes Your Result in Texas

  • Texas cost-of-living drag:Line-item costs in Texas deviate from the US mean by whatever the BEA all-items RPP deviates from 100. Weight your budget toward the state average rather than the national average.

Related Calculations for Texas

These calculators share inputs with the savings rate formula, so pair them to pressure-test your answer from multiple angles.

  • Texas's budget planner rules — savings rate emerges from the budget.
  • Texas net worth numbers for 2026 — savings rate drives net worth trajectory.
State Index · Salary

How does Texas compare to the other 49?

Sourced from primary government data. All 50 states ranked, click any state for the breakdown.

See Texas vs all 50 states→

How Texas Compares

MetricTexasNational AvgARLANM
Median Home Price$295,000$420,000$275,000$285,000$345,000
Property Tax Rate1.8%1.07%0.62%0.55%0.8%
State Income TaxNone4.6%*4.9%4.25%4.9%
Avg Insurance Cost$4,240/yr$1,544/yr$1,440/yr$1,920/yr$1,440/yr
Cost of Living Index97.1100849193
Household Income — p25$42,656$41,401$32,400$27,664$30,792
Household Income — p50 (median)$80,800$83,592$64,553$60,000$64,000
Household Income — p75$152,118$153,000$115,675$113,423$122,600

*Average of states that levy an income tax. 2026 estimates. Texas has no income tax but the 6th-highest property tax rate in the nation.[3] Income percentiles from DQYDJ/Census CPS 2024[4].

Texas Financial Planning Tips

Tip

Track take-home pay: no state income tax means only federal + FICA apply — one of the simpler payroll pictures in the U.S. in Texas.

Tip

Anchor savings goals to the Texas cost of living index (97.1). A national 20% savings rate needs adjustment up or down depending on local expense floors.

Tip

Use tax-advantaged accounts first: 401(k), HSA, IRA. Since Texas has no income tax, Roth accounts may be especially attractive — you lock in today's zero-state-tax cost forever.

Frequently Asked Questions: Savings Rate Calculator in Texas

How does the savings rate work in Texas?
The savings rate calculator runs the standard client-side formula and layers on Texas's zero state income tax, 1.8% property tax rate, and cost-of-living index of 97.1. All inputs stay in your browser.
What is the cost of living in Texas?
Texas's cost of living index is 97.1 (100 = national average). Living in Texas is 3% less expensive than the U.S. average.
How does Texas's cost of living affect my financial planning?
Texas's cost of living index of 97.1 directly impacts budgeting, savings targets, and retirement planning. With costs 3% below average, your savings goals are more achievable, and retirement funds stretch further. The median home price of $295,000 and property taxes at 1.8% are major factors in housing affordability.
What tax advantages are available in Texas?
Texas has no state income tax, which is itself a significant tax advantage — residents keep more of their earned income, investment gains, and retirement withdrawals compared to taxed states. Focus on federal tax optimization through retirement accounts, HSAs, and applicable deductions like property taxes at 1.8%.
Does Texas have state income tax?
No. Texas is one of seven states with no state income tax. However, Texas has the 6th-highest property tax rate in the nation (1.80%), which partially offsets the income tax savings.
What is the Texas homestead exemption?
Texas provides a $100,000 homestead exemption on school district taxes, plus additional exemptions for over-65 and disabled homeowners. This can save $1,000-$3,000+ annually.
Why are Texas property taxes so high?
Texas relies on property taxes as a primary revenue source because there is no state income tax. School districts, counties, cities, and special districts each levy their own rates, which combine to produce the high effective rate.
Can I do a cash-out refinance in Texas?
Yes, but Texas limits cash-out refinances and HELOCs to 80% of your home's appraised value — you cannot borrow against more than 80% equity. This is unique to Texas and set in the state constitution.
Is the savings rate free to use for Texas residents?
Yes — the Savings Rate Calculator is 100% free, with no signup required. All Texas-specific numbers (median home price $295,000, property tax 1.8%, no state income tax) are prefilled from public datasets. Calculations run in your browser; no data is sent to our servers.
Where does the Texas data on this page come from?
Data is sourced from the U.S. Census Bureau (ACS), the Tax Foundation, BLS OEWS wage tables, Zillow ZHVI for home values, and Freddie Mac PMMS for mortgage rates. Each number is timestamped and refreshed via our hourly ETL.
How often is the Texas savings rate updated?
Source data is re-pulled on an hourly cadence for live series (mortgage rates) and on each new vintage release for ACS / Tax Foundation tables. Page caches revalidate every 24 hours via Next.js ISR.
Can I export results from the Texas savings rate?
Yes — every calculator supports CSV / PDF export from the result panel. No account required. Saves stay in your browser; nothing is uploaded.
Does the savings rate replace tax or financial advice?
No. The Savings Rate Calculator provides educational estimates using public data and standard formulas. It is not personalized tax, legal, or investment advice. For decisions with material consequences, consult a licensed professional.

More Calculators

← Back to Savings Rate Calculator

Related Calculators for Texas

Texas Compound Interest CalculatorTexas Retirement Savings CalculatorTexas Savings Goal CalculatorTexas Budget Planner

Calculate for Neighboring States

Savings Rate Calculator for ArkansasSavings Rate Calculator for LouisianaSavings Rate Calculator for New MexicoSavings Rate Calculator for Oklahoma

Savings Rate Calculator by State

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Texas Financial Data (2026)

State Income Tax
None
Property Tax Rate
1.8%
Median Home Price
$295,000
Annual Property Tax (median home)
$5,310
Avg Homeowners Insurance
$4,240/year
Cost of Living Index
97.1 (100 = avg)
State Estate Tax
No
State Abbreviation
TX

Compare Texas with other states

Every number on this page reads from the same CalcFi data repository used by the Live Data pages below — the figures stay consistent.

Home Prices by State

Zillow ZHVI across all 50 states

Property Tax by State

Effective rate × ZHVI = annual bill

Household Income by State

FRED real median + percentile bands

Cost of Living by State

BEA RPP all-items + housing

No-Income-Tax States

Full list + trade-offs

Current Interest Rates

Treasury curve + PMMS + FDIC

How we compute this — methodology

CalcFi pSEO pages combine three inputs: (1) the calculator formula itself, which runs client-side so no inputs leave your browser; (2) state-level financial constants from primary public datasets; and (3) national benchmarks for comparison. The Texas page uses the property tax rate (1.8%), median home price ($295,000), and no state income tax from the sources listed below.

Refresh cadence:state tax brackets and minimum wage rates are reviewed annually after each state's legislative session. Property tax, median home price, insurance, and cost-of-living figures are reviewed annually against the primary sources. Income percentiles are refreshed when the Census CPS/IPUMS releases update (typically September). Page-level dateModified matches the last editorial review date, shown above.

Known limits: statewide averages mask large intra-state variance — county-level property tax and metro-level home prices differ significantly from the figures shown. For the most precise calculations, cross-check the output against your actual county assessor and the latest federal/state tax tables at filing time.

More Cities in Texas

Use Savings Rate Calculator for any city in Texas.

Houston7.5M metroDallas7.8M metroSan Antonio2.6M metroAustin2.3M metroFort Worth960K metroEl Paso870K metroCorpus Christi450K metroLaredo275K metroLubbock340K metroAmarillo310K metroBrownsville430K metroKilleen470K metroBeaumont395K metroMcAllen900K metroFrisco230K metroPlano290K metroMcKinney210K metroRound Rock140K metroIrving260K metroRichardson120K metroLewisville115K metroMesquite150K metroWaco280K metroNew Braunfels108K metroMidland175K metroOdessa162K metroCollege Station265K metroPasadena155K metroTyler235K metroAbilene180K metroSan Angelo122K metroTemple82K metroDenton160K metroAllen108K metro

Sources

Every number on this page cites a primary public dataset. Last reviewed 2026-04-19 (auto-bumped by the next ISR refresh after an ETL run).

  1. U.S. Department of Labor, Wage and Hour Division — State Minimum Wage Laws. dol.gov/agencies/whd/minimum-wage/state. Retrieved 2026-04-19.
  2. Tax Foundation — State Individual Income Tax Rates and Brackets. taxfoundation.org/data/all/state/state-income-tax-rates-2025. Retrieved 2026-04-19.
  3. Composite state financial context (median home price, property tax effective rate, cost of living index) cross-referenced against the primary sources below.
  4. Census Current Population Survey / IPUMS CPS (income year 2024) via DQYDJ state tools. dqydj.com. Retrieved 2026-04-19.
  5. FRED (Federal Reserve Economic Data) — real median household income, unemployment, HPI, LFPR per state — fred.stlouisfed.org. Retrieved 2026-04-19.
  6. Internal Revenue Service — federal individual income tax brackets and standard deductions — www.irs.gov/forms-pubs/about-publication-17. Retrieved 2026-04-19.
  7. FDIC — National Deposit Rates (savings, checking, CD) — www.fdic.gov/resources/bankers/national-rates. Retrieved 2026-04-19.
  8. U.S. Census Bureau — American Community Survey (ACS) 5-year estimates — www.census.gov/programs-surveys/acs. Retrieved 2026-04-19.
  9. Zillow Research — ZHVI (Zillow Home Value Index) + ZORI (Zillow Observed Rent Index) — www.zillow.com/research/data. Retrieved 2026-04-19.
  10. Freddie Mac Primary Mortgage Market Survey (PMMS) — weekly national mortgage rates — www.freddiemac.com/pmms. Retrieved 2026-04-19.
  11. Tax Foundation — Property Taxes Paid as % of Owner-Occupied Housing Value; State Tax Rates and Brackets; Estate/Inheritance; Social Security Taxation — taxfoundation.org/data/all/state. Retrieved 2026-04-19.
  12. NAIC Dwelling Fire, Homeowners Owners, and Homeowners Tenants Insurance Report — content.naic.org/article/homeowners-insurance-report. Retrieved 2026-04-19.
  13. State Departments of Revenue — official bracket + deduction publications (one primary URL per state; linked in the brackets table below) — taxfoundation.org/data/all/state/state-income-tax-rates. Retrieved 2026-04-19.
  14. Bureau of Economic Analysis — Regional Price Parities by State — www.bea.gov/data/prices-inflation/regional-price-parities-state-and-metro-area. Retrieved 2026-04-19.
  15. U.S. Department of Labor — State Minimum Wage Laws — www.dol.gov/agencies/whd/minimum-wage/state. Retrieved 2026-04-19.
  16. HUD Fair Market Rents — 50th-percentile 2-bedroom FY — www.huduser.gov/portal/datasets/fmr.html. Retrieved 2026-04-19.
  17. BLS Occupational Employment and Wage Statistics (OEWS) — state-level occupational wages — www.bls.gov/oes. Retrieved 2026-04-19.

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