An overview of the general cost of living index for McAllen, TX is displayed above for your reference. Residents in McAllen, TX enjoy a cost of living index of 77. This index is 15% lower than the Texas average, and 23% lower than the national average. The following categories are used when determining the cost of living index for any given city: health care (5%), transportation (9%), utilities (10%), groceries (13%), housing (30%), and goods/services (33%). Clearly, housing and goods/services make up the majority of the formula for calculating the cost of living index. Because of this, the general cost of living for any given area can be estimated by looking at the cost of everyday goods in that area. For those living in McAllen, TX, the average cost of goods and services is 16% lower than it is in Texas, and it is 22% lower than the national average.