When it comes to the cost of living in Dallas, the Big D will not break the bank. Living here is significantly lower compared to the national average. Considering the Lone Star State’s glitzy downtime, its wide array of amenities, country music, scrumptious barbecue, an awesome sports culture, affordable real estate, and of course, a healthy job market, moving here is considered smart.
Wherever you live, the monthly rent or mortgage payments comprise the highest expenses. This is why it is recommended to build your budget based on housing costs first. In Dallas, rent for an average 1-bedroom is $1,309, while for an average 2-bedroom, it’s $2,049. For a 3-bedroom apartment, rent is $2,493, and for a studio apartment rental cost is $1,236. An easy way to help save on rent is to rent with a roommate. In Dallas, splitting rent this way gives you about $288 in monthly savings.
To get a realistic picture of how budgeting works with rental costs, it is helpful to know that if you are renting an average-priced studio apartment in Dallas, your annual salary should be about $44,496 or higher. If you’re renting a 1-bedroom apartment, your salary should be $47,160 or higher. For a 2-bedroom apartment, your annual salary should be $73,764 or higher, and for a 3-bedroom apartment, the salary should be $125,748 or higher.
An average Texan spends $3,177 yearly or $264.75 monthly on groceries. For a family of four, food expenses can reach up to $9,305 annually or $775 monthly. Of course for smart shoppers, this budget will change. Eating out in Dallas is also always a good idea with savory barbecue and that distinct Tex-Mex cuisine. So, if you choose to eat out in a mid-tier restaurant in Dallas, expect to pay around $69 for a three-course meal.
In Texas, a local spends about $5,113 in transportation expenses every year. So, if you’re a family of four, transportation expenses can reach up to $13, 896 each year. However, if annual expenses will rely on public transportation, residents get to save more. In Dallas, the annual cost of local public transportation passes is $1,152. Texas cities are working on projects now to enhance public transport options.
Since healthcare is essential for a good life, making this a fixed expense is the way to go. Annually, the average medical cost for a Texas resident is $2,760. For a family of four, that goes up to $8,694 yearly. Whether you’re someone who has a chronic illness or is a physical patient for the yearly checkups, health insurance will help with rising healthcare costs.
The national monthly average for basic apartment utility expenses in Texas is $240. In Dallas, that average is a bit higher with $263.55 monthly for costs that cover electricity, water, and gas. This rate does not include the other utilities considered essential like cell service and internet connection. If an average American pays $94 for their cellphone bill and about $30-$60 for internet service, then these two fixed monthly expenses can be added to the $263.55 total.
The Big D takes sports seriously so spending on leisure is even encouraged. Whether it’s college-level sports, the rodeo, football, sports is in the fabric of the culture in Texas. A Dallas Cowboys game, for example, will cost you $148 for a ticket. A Houston Texans game will cost an average of $87. For fitness buffs, gym memberships cost about $40.73 monthly. Low-cost fitness options are also available like running where all you need is a pair of sneakers.
Among the other expenses, you need to know when you live in Dallas include sales tax, insurance, and the fact that there is no income tax in Texas. The sales tax rate in Texas is low at 6.25%. This tax combines local-level tax rates so depending on your city of residence, expect a higher rate. When it comes to insurance, rates will depend on what area you live in Texas, especially that the state is prone to severe weather. Finally, the excellent news is residents in Texas save so much because both the state and local governments do not levy income taxes.
The Big D is one of the preferred places to move to with its active business district, cultural activities, sporting events, restaurants, things to do, and places to visit. So whether it’s apartment living or getting a place of your own, there is a neighborhood right for you and your budget.