15 Most Affordable Cities To Live In Texas

American flags displayed in front of a southern home

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Texas is an attractive destination for many people seeking affordability, primarily due to its lack of a state income tax and a relatively low overall cost of living. This allows residents to keep a larger portion of their earnings compared to states with high income taxes, making their paychecks stretch further.

The financial benefits extend to retirees, as Texas also does not tax retirement income or Social Security. While property taxes are on the higher side to compensate for the lack of state income tax, the savings in other areas often make Texas a more affordable option overall for many individuals and families.

The state’s economic power, which is the eighth largest when compared to countries around the world, is driven by powerhouse industries such as energy, technology, and manufacturing.

A 2025 analysis by HOMEiA.com identified these 15 cities among the most affordable in Texas, based on factors like housing, groceries, and transportation costs.

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1. Brownsville, Texas

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Located near the southern tip of Texas, it is known for its exceptionally low cost of goods and services.

2. Amarillo, Texas

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In the Texas Panhandle, Amarillo offers low rent and affordable housing. The city’s stable, slow growth has contributed to its low prices.

3. Killeen, Texas

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Situated in Central Texas, Killeen is recognized for its overall affordability and its proximity to major cities like Austin, Dallas, and San Antonio.

4. Lubbock, Texas

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The home of Texas Tech University, Lubbock has a cost of living that is nearly 20% lower than the national average.

5. Corpus Christ, Texas

United States, Texas: great blue heron (ardea herodias) catching a fish, a flathead grey mullet (mugil cephalus)

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This coastal city has an overall cost of living below the national average, though its costs for utilities are slightly higher due to air conditioning needs.

6. Waco, Texas

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Waco offers an affordable lifestyle and is conveniently located between Dallas and Austin.

7. Abilene, Texas

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With a low cost of living, Abilene is an attractive option for those seeking affordability in West Texas.

8. San Antonio, Texas

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While being one of Texas’s largest cities, San Antonio maintains a cost of living that is 8% below the national average.

9. Tyler, Texas

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Found in East Texas, Tyler is noted for its low living expenses, especially for single-income families.

10. El Paso, Texas

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A study by the El Paso Times in early 2025 ranked it as the most affordable city in Texas, with a cost of living index 15.8% below the national average.