A+
11%
Overall NAT. AVG.
8%
Goods & Services NAT. AVG.
20%
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 Amarillo Texas National
Cost of living8992100
Goods & Services9296100
Groceries9496100
Health care8494100
Housing8083100
Transportation9292100
Utilities97104100

An Overview of Cost of Living in Amarillo, TX

Understanding the cost of living in Amarillo can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Amarillo cost of living index is 89, which is 11% lower than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

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

The most insightful perspective on a city comes from its residents. We recently surveyed 21 locals to gauge their perception of the cost of living in Amarillo. The feedback revealed that 48% of respondents found the cost of living to be reasonable, with prices on the decline, while 52% regarded it as notably expensive with prices that continue to rise.

Is Amarillo Affordable?

Is Amarillo affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Amarillo, for instance, where the median home price falls 24.8% lower than the national average, and monthly rent rates are 7.7% lower than usual. Additionally, median income levels contribute to the equation, with Amarillo flaunting a median household income of $52,941, 4.3% lower than the national norm.

What Factors can Influence the Cost of Living in Amarillo?

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 goods and services, 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%.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Amarillo, the healthcare costs are 15.9% lower than the national average.

Where is the Data From?

The cost of living in Amarillo, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Amarillo is 4% lower than the Texas average
  • The cost of living in Amarillo is 11% lower than the national average
  • Amarillo housing is 20% lower 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 Amarillo

See all the best places to live around Amarillo

Compare Amarillo, TX Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      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$68,935$5,745$1,608$2,068
      Renters$36,674$3,056$856$1,100
      A good indicator of the general affordability of housing in Amarillo, TX, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Amarillo, the median monthly income is $68,935 for those who own their own homes. Under the standard rule, that income level would allow for $1,608 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $36,674, per the median income in the area. That would allow for renters to spend up to $856 on monthly rental expenses.

      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 Amarillo National avg. Difference
      Haircut $28.33$24.2616.8%
      Beauty Salon $49.67$45.569.0%
      Toothpaste $3.63$3.702.0%
      Shampoo $1.25$1.282.6%
      Movie $10.19$12.1316.0%
      Bowling $16.11$18.0010.5%

      Groceries

      Item Amarillo National avg. Difference
      Ground Beef $5.84$5.840.1%
      Fried Chicken $1.32$1.5716.1%
      Milk $4.51$4.673.5%
      Potatoes $4.15$4.9315.9%
      Pizza $10.10$12.0916.4%
      Beer $9.99$10.414.0%

      Health Care

      Item Amarillo National avg. Difference
      Optometrist $77.00$125.6838.7%
      Doctor $114.00$135.7816.0%
      Dentist $91.00$113.2919.7%
      Ibuprofen $10.21$10.654.1%
      Lipitor $450.42$468.603.9%

      Housing

      Item Amarillo National avg. Difference
      Home Price $138,900.00$184,700.0024.8%
      Avg. Mortgage Payment $1,449.46$2,346.6938.2%
      Apartment Rent $876.00$949.007.7%

      Transportation

      Item Amarillo National avg. Difference
      Gasoline $3.19$3.467.7%
      Tire Balancing $54.00$59.929.9%

      Utilities

      Item Amarillo National avg. Difference
      All Electricity $173.26$193.9910.7%
      Phone $209.24$192.258.8%
      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.
      Canyon, TX15,648928.1%
      Palisades, TX367945.9%
      Bishop Hills, TX2311032.6%
      Timbercreek Canyon, TX54911212.1%
      Lake Tanglewood, TX72114645.6%
      Amarillo, TX199,2258910.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Aurora, IL199,3261055.2%
      Glendale, CA199,35719190.5%
      Montgomery, AL199,0548812.2%
      Grand Rapids, MI199,417927.7%
      Huntington Beach, CA199,77818787.4%
      Amarillo, TX199,2258910.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.