| Index | Amarillo | Texas | National |
| Cost of living | 93 | 94 | 100 |
| Groceries | 99 | 98 | 100 |
| Health care | 101 | 98 | 100 |
| Housing | 79 | 83 | 100 |
| Transportation | 98 | 98 | 100 |
| Utilities | 105 | 103 | 100 |
| Lifestyle & Entertainment | 101 | 98 | 100 |
| Household Items | 98 | 98 | 100 |
| Education & Childcare | 96 | 98 | 100 |
Knowing the cost of living in Amarillo allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Amarillo stands at 93, marking it 7% lower than the national average.
The cost of living in Amarillo closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, houshold expenses, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Amarillo can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.
Locals have the inside scoop on their city. So, we polled 21 residents in Amarillo to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 48% find it reasonable with decreasing prices, but 52% think it's quite pricey, with prices that continue to rise.
Wondering if Amarillo is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Amarillo, for example, the median home price is 25.4% lower than what folks pay nationally, and monthly rent is 9.3% lower than the usual rates. Plus, income levels matter too, with Amarillo boasting a median household income of $78,858, which is 3% lower than the national average.
Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Amarillo, is 20.6% lower than the national average.
Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday household expenses, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Amarillo, the standard sales tax rate starts at 6.25%, and the income tax rates commence at 0%.
Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Amarillo, the groceries index is 1.5% lower than the national average.
The cost of living estimates displayed for Amarillo are modeled using a U.S. average baseline of 100, helping provide a useful comparison of local living expenses. Housing calculations include U.S. Census home price and rental data, while all other values are AI-assisted estimates based on regional cost patterns, climate, transportation, and everyday spending expectations. These values are intended for directional comparisons across cities.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $100,873 | $8,406 | $2,354 | $3,026 |
| Renters | $54,894 | $4,575 | $1,281 | $1,647 |
| State | General Sales Tax | With Max Surtax |
| Texas | 6.25% | 8.25% |
| State | Income Tax (Low) | Income Tax (High) |
| Texas | 0% | 0% |
| City | Population | Cost of Living Index | National Avg. |
| Canyon, TX | 16,086 | 97 | 3.3% |
| Palisades, TX | 381 | 99 | 1.0% |
| Bishop Hills, TX | 238 | 108 | 7.6% |
| Timbercreek Canyon, TX | 560 | 116 | 16.4% |
| Lake Tanglewood, TX | 747 | 153 | 53.3% |
| Amarillo, TX | 205,514 | 93 | 6.6% |
| City | Population | Cost of Living Index | National Avg. |
| Sunrise Manor, NV | 205,701 | 104 | 3.7% |
| Aurora, IL | 206,020 | 105 | 5.0% |
| Yonkers, NY | 204,945 | 142 | 41.6% |
| Huntington Beach, CA | 204,313 | 195 | 95.1% |
| Montgomery, AL | 204,291 | 89 | 10.9% |
| Amarillo, TX | 205,514 | 93 | 6.6% |
Here are the best places to live in Texas
These are the largest cities in Texas
Check out the 10 safest cities in Texas
Most Dangerous States In The US