Cost of Living Comparison: Texas vs Pennsylvania

By Maryam on 08/13/2025

Cost of living comparison

Lately, Texas has been all the rage for people seeking new cities to call home. Tech giants are making it their new base, and like moths to a flame, employees are gravitating towards it. And rightly so.

 

Even larger cities such as Dallas, Houston, and Austin promote an overall affordable cost of living. Housing is economical, education is paramount, and jobs are secure. What more would you want? Maybe I should also consider moving to Texas!

 

But what about good old Pennsylvania? PA has been doing this for years. In comparison to other cities on the East Coast, PA has won the cost of living wager.

 

Although let’s be realistic and see if Texas is worth the hype it’s getting, and maybe Pennsylvania might have tough competition.

1) Overall Cost of Living Index

Texas

Texas is infamous for its relatively low cost of living. The overall index falls slightly below the national average. This is all thanks to the low housing costs and no state income tax. If this doesn’t get people to consider moving to Texas, I don’t know what will.

Pennsylvania

Unlike Texas, PA is above the national average in the cost of living statistics. This is due to higher taxes in cities such as Philly and Pittsburgh.

Verdict

PA is modestly more expensive than Texas, but both remain relatively more affordable compared to the high-cost states such as New York or Massachusetts. This indicates that, on average, Pennsylvania is modestly more expensive overall than Texas—but both remain relatively moderate compared to high-cost states.

2) Housing and Utilities

Housing and utilities

Texas

Across the state, housing is more affordable and accessible. The median home prices and rental rates are often around 25% lower than in Pennsylvania. Utility costs tend to fluctuate seasonally.

Pennsylvania

PA has relatively had more stable housing options across the nation. The median home price is around $270,000, which is much less in comparison to other states. For utilities, there is high energy use in summer and winter.

Verdict

I recently had an interaction with one of our old clients who wanted to sell their home in Philadelphia. Since we buy homes for cash, they reached out to see if we would be interested, and of course, we were.

 

As part of our discussions, the client brought up that her company was moving her to Austin, and she couldn’t believe the prices she was getting for her potential new home. She was so amazed that we had to emphasize that it was true.

 

“Home ownership is a key component of every individual and family. Texas seems to get that, and a healthy regulatory control fostering affordability, housing availability, and a thriving cost of living is why you should believe it”.

 

Housing and Utilities favor Texas overall.

3) Taxes

Texas

No state income tax offers substantial savings. The sales tax is around 6.25% statewide, and some local additions may take it up to 8%. Property taxes depend on the district, but they don’t put a massive dent in the income.

Pennsylvania

PA has a flat state tax of around 3%. Sales tax is 6% with local income taxes in several areas. Property taxes can get high in certain big cities, such as Pittsburgh.

Verdict

The tax category significantly favors Texas, especially for those in a higher bracket.

4) Transportation

Transportation impacts the cost of living
  • Texas often enjoys lower gas prices than Pennsylvania due to its closer proximity to refineries.
  • Insurance premiums are lower in many parts of Texas.
  • Major cities like Pittsburgh and Philadelphia have more accessible public transportation, but many residents still rely on cars.

Overall, Texas might offer marginal savings, but commuting costs depend heavily on exact location and lifestyle.

5) Healthcare

Healthcare costs—including doctor visits and hospitalization—tend to be modestly higher in Pennsylvania, especially in metro areas. This could be due to higher local healthcare infrastructure costs and insurance premiums.

6) Quality of Life and Regional Variations

Healthy cost of living resonates a good life

Texas

Tangible savings are a possibility because of no state income tax. Over the years, Texas has enjoyed low housing costs, but Dallas and Austin are now witnessing a rise.

Pennsylvania

PA offers better public transit options that can ease the commuting burdens. There may be higher taxes in urban areas, but the smaller towns remain affordable.

Summary Table

Category                                          Texas Highlights                                                     Pennsylvania Highlights
Overall Index                                     Generally below or near the national average.         At or just above the national average
Housing & Utilities                             Lower housing costs, variable utilities.                      Higher housing & heating costs
Taxes.                                                No state income tax, moderate sales tax                  Income tax + local levies, moderate to high
Transportation.                                  Lower gas and insurance in many areas.                  Public transit options in cities
Healthcare.                                       Generally lower.                                                         Somewhat higher in urban locales
Quality of Life.                                  Warmer climate, growing metros.                             Four seasons, historical locales, transit

 

Final Thoughts

Moving isn’t easy. Nothing related to it is easy. A new home, job, money, stable cost of living, savings, and even the moving truck become a hassle and a stressor. Research is essential. It could end up saving you a lot of money and peace of mind.

 

Based on what we read today, Texas seems to be more budget-friendly overall. But if you value seasonal variety, Pennsylvania offers distinct benefits that may cost more.

 

So, you have your options. Now pick your poison!