A
7%
Overall NAT. AVG.
8%
Goods & Services NAT. AVG.
14%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Dallas Texas National
Cost of living10792100
Goods & Services10896100
Groceries10096100
Health care10894100
Housing11483100
Transportation8992100
Utilities111104100

An Overview of Cost of Living in Dallas, TX

Getting a feel for the cost of living in Dallas is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Dallas is 107, which is 7% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

The cost of living in Dallas closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, goods and services, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Dallas can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.

What Do Locals Say About the Cost of Living in Dallas?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 32 locals to understand their opinions on the cost of living in Dallas. The results indicated that 34% found it reasonably priced with decreasing prices of goods and services, while 66% viewed it as quite expensive, with increasing prices.

Is Dallas Affordable?

Is Dallas affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Dallas, the median home price is 13% higher than the national average and monthly rent prices are 17.1% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Dallas boasting a median household income of $54,747, 1% lower than the national average.

What Factors can Influence the Cost of Living in Dallas?

Utilities: Similar to the prices of any other goods or services, utility expenditures can exhibit substantial variability, influenced by factors such as climate, energy sources accessibility, geographical location and state regulations. Costs related to electricity, water, heating, and waste disposal can fluctuate, whether higher or lower, contingent on the city or state. In Dallas, the utilities index is 11.4% higher than the national average.

Subsidies: Certain cities or states may institute government subsidies or assistance programs designed to alleviate the financial burdens associated with the cost of living for their residents. These programs encompass a variety of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Areas that provide fewer subsidies may see an uptick in their overall cost of living.

Healthcare: Healthcare expenditures and insurance premium rates can vary significantly, contingent upon the particular city or state. Factors such as the accessibility of healthcare facilities, out-of-pocket expenses for doctor's appointments, dental care charges, prescription medication costs, and expenses related to specialized medical care can all have an impact on the overall cost of living. In Dallas, healthcare costs are 8.3% higher than the national average.

Where is the Data From?

The Dallas cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Dallas is 16% higher than the Texas average
  • The cost of living in Dallas is 7% higher than the national average
  • Dallas housing is 14% higher than the national average
  • Texas general sales tax is 22% higher than the national average
  • Texas state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Dallas

See all the best places to live around Dallas

Compare Dallas, TX Cost of Living

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$76,634$6,386$1,788$2,299
      Renters$45,047$3,754$1,051$1,352
      A good way to judge both the affordability of the housing and the cost of living in Dallas is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Dallas has a median income of about $76,634 for people who own homes. Based on that number, a maximum of $1,788 should be spent on expenses related to housing. Renters have a slightly different median income, which is $45,047. Based on this average, renters should spend no more than $1,051 on all rental costs if they want to maintain a non-impoverished standard of living.

      Texas Sales Tax

      State General Sales Tax With Max Surtax
      Texas 6.25% 8.25%

      Texas Income Tax

      State Income Tax (Low) Income Tax (High)
      Texas 0% 0%

      Goods & Services

      Item Dallas National avg. Difference
      Haircut $33.29$24.2637.2%
      Beauty Salon $65.85$45.5644.5%
      Toothpaste $3.57$3.703.6%
      Shampoo $1.30$1.281.3%
      Movie $14.60$12.1320.3%
      Bowling $24.53$18.0036.3%

      Groceries

      Item Dallas National avg. Difference
      Ground Beef $5.23$5.8410.4%
      Fried Chicken $1.74$1.5710.8%
      Milk $4.65$4.670.5%
      Potatoes $4.93$4.930.0%
      Pizza $11.30$12.096.5%
      Beer $10.93$10.415.0%

      Health Care

      Item Dallas National avg. Difference
      Optometrist $143.73$125.6814.4%
      Doctor $140.69$135.783.6%
      Dentist $130.53$113.2915.2%
      Ibuprofen $10.62$10.650.3%
      Lipitor $499.87$468.606.7%

      Housing

      Item Dallas National avg. Difference
      Home Price $208,700.00$184,700.0013.0%
      Avg. Mortgage Payment $2,258.00$2,346.693.8%
      Apartment Rent $1,111.00$949.0017.1%

      Transportation

      Item Dallas National avg. Difference
      Gasoline $3.09$3.4610.7%
      Tire Balancing $52.04$59.9213.2%

      Utilities

      Item Dallas National avg. Difference
      All Electricity $219.02$193.9912.9%
      Phone $208.71$192.258.6%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Mesquite CDP, TX6298514.7%
      Horseshoe Bend, TX6218713.4%
      Wilmer, TX4,698909.9%
      Hutchins, TX5,804928.1%
      Cockrell Hill, TX4,200936.9%
      Dallas, TX1,338,8461077.3%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Calgary, AB1,371,990n/a 
      San Diego, CA1,414,54516868.2%
      San Antonio, TX1,529,133955.5%
      Philadelphia, PA1,581,5311022.4%
      Ottawa, ON1,058,126n/a 
      Dallas, TX1,338,8461077.3%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.