Comprehensive salary data, cost of living, and employment information for Houston, Texas. Population: 2,304,580.
Reviewed by Alexander O.M., MBA, BSc Engineering•Updated
Houston's $56,019 median household income is below the national average, but the city's cost-of-living index of 96 and the absence of Texas state income tax combine to make Houston one of the better effective purchasing-power metros among major US cities. The economy is dominated by energy: Houston is the world's oil-and-gas capital by corporate headcount, with ExxonMobil, ConocoPhillips, Halliburton, Baker Hughes, and dozens of independent producers and service companies anchored in the metro. That concentration produces unusually high average salaries in petroleum-engineering and geology fields — Houston's wage premium for those roles is among the highest in the world. Healthcare is the second major cluster: the Texas Medical Center, the world's largest medical complex, employs over 100,000 people and includes MD Anderson Cancer Center (routinely ranked the top cancer hospital in the US), Baylor College of Medicine, and Memorial Hermann. Aerospace (NASA Johnson Space Center) and the Port of Houston logistics network fill out the top employment sectors. Property taxes are high (effective rates around 1.8 to 2.5 percent depending on precinct), which partially offsets the income-tax savings. Detailed breakdown follows.
Median Individual
$33,312
per year
Median Household
$56,019
per year
Cost of Living
96
Affordable (US avg = 100)
Population
2.3M
Salary Breakdown for Houston
The median individual income in Houston is $33,312 per year, which works out to approximately $2,776/month or $16.02/hour for full-time workers. The median household income is $56,019.
Cost of Living Adjusted Salary
Houston's cost of living index is 96 (national average = 100). The median salary of $33,312 in Houston has the purchasing power of approximately $34,700 at the national average cost of living. Houston is roughly in line with the national average, making it a balanced option for salary vs expenses.