Texas variant. This is a Texas-specific version of the Budget Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Budget Calculator.
Building a budget in Texas starts with the $75,780 median income ($6,315/month) and the local cost of housing - a $305,000 median home and 8.20% combined sales tax.
50/30/20 budget for Texas
The 50/30/20 rule splits after-tax income into needs (50%), wants (30%), and savings/debt (20%). On $6,315/month gross, that's roughly $3,158 needs, $1,895 wants, $1,263 savings - before adjusting for Texas taxes.
With no Texas income tax, more of each paycheck is available to allocate.
About taxes and housing in Texas
Texas has a constitutional ban on a state personal income tax, relying instead on sales and property taxes.
Texas offsets the lack of an income tax with relatively high property taxes near 1.68%, while median home values are around $305,000.
Texas has one of the largest state economies in the nation, led by energy, technology, manufacturing, and trade.
Worked example: $75,780 income
$6,315/month → needs $3,158, wants $1,895, savings $1,263. If housing in Texas exceeds the $3,158 needs cap, trim wants or relocate within the metro.
Quick reference
- State income tax: No state income tax (constitutional ban)
- State sales tax: 6.25% (plus 1.95% avg local)
- Median home value: $305,000
- Median household income: $75,780
- Effective property tax rate: 1.68%
- Avg auto insurance: $2,018/yr
Frequently Asked Questions
What's a good monthly budget in Texas?
Anchor to take-home pay using 50/30/20: about $3,158 needs on the median income, adjusted for Texas taxes.
How much should I save in Texas?
The 50/30/20 rule targets 20% - roughly $1,263/month on the Texas median income.