Updated April 6, 2026
The average salary in Texas in 2026 is approximately $64,800 per year, slightly below the national average of $68,600, but growing rapidly as the state continues to attract major tech, financial, and energy companies from both coasts. Texas has become one of the most economically dynamic states in the US, with Austin in particular transforming into a major technology hub.
Texas’s biggest economic advantage is its complete absence of state income tax, combined with housing costs dramatically below California, despite increasingly competitive wages in technology and finance. This combination has made Texas the top destination for corporate relocations from California and New York over the past five years.
Average Salary in Texas 2026: Dallas, Houston & Austin Pay Guide
Average Salary by City in Texas 2026
| City | Avg. Salary | Key Sectors |
|---|---|---|
| Austin | $82,400 | Tech (Tesla, Apple, Meta, Dell), startups |
| Houston | $72,600 | Energy, petrochemical, healthcare, aerospace |
| Dallas | $74,200 | Finance, tech, telecom, logistics |
| San Antonio | $58,800 | Military, healthcare, tourism |
| Fort Worth | $62,400 | Aviation (AA HQ), manufacturing, logistics |
| El Paso | $48,600 | Military, healthcare, cross-border trade |
NO STATE INCOME TAX
Texas has no state income tax. A software engineer earning $150,000 in Austin keeps approximately $9,000–$12,000 more per year than the same earner in California before accounting for Austin’s lower housing costs, which can save an additional $1,500–$3,000 per month.
Highest Paying Industries in Texas 2026
| Industry | Salary Range | Key Employers / Notes |
|---|---|---|
| Petroleum Engineering | $110,000–$180,000 | ExxonMobil, ConocoPhillips, Pioneer |
| Software Engineering (Austin) | $120,000–$220,000 TC | Tesla, Apple, Meta, Google, Dell |
| Investment Banking (Dallas) | $110,000–$250,000 | Goldman Sachs, JPMorgan DFW offices |
| Healthcare (Physicians) | $240,000–$500,000 | Texas Medical Center (largest in world) |
| Aerospace Engineering | $90,000–$155,000 | NASA JSC, Lockheed, Boeing Dallas |
| Legal (BigLaw Dallas) | $130,000–$350,000 | Associate to partner range |
| Engineering (Energy) | $85,000–$140,000 | Pipelines, refining, LNG |
| Nursing | $70,000–$100,000 | $120,000+ with agency or OT |
Why Companies Are Moving to Texas
Since 2019, Texas has attracted headquarters relocations from Oracle, Hewlett-Packard Enterprise, Tesla, Charles Schwab, McKesson, and dozens of other major corporations. The drivers are consistent: no state income tax for individuals, lower corporate taxes, less regulatory burden, and dramatically lower real estate costs than California or New York, while still offering access to a large, educated workforce.
Austin’s population grew faster than any other major US metro from 2018 to 2024, straining its previously affordable housing market. Home prices in desirable Austin neighbourhoods (Westlake, Travis Heights, South Congress, Mueller) now reach $600,000–$1.2M, though still below comparable San Francisco or LA neighbourhoods.
Texas vs Canada: Which Offers Better Value?
For technology professionals, Texas, particularly Austin, offers total compensation packages 20–40% higher than equivalent Canadian roles in nominal USD/CAD-converted terms. The no-income-tax advantage adds significant after-tax value. However, healthcare insurance costs ($600–$1,200/month for a family) partially offset this advantage compared to Canada’s publicly funded system.
Texas Minimum Wage 2026
Texas has not raised its state minimum wage above the federal minimum of $7.25 per hour, the lowest in the developed world among jurisdictions with a major economy. In practice, market wages for most entry-level positions in Texas’s major cities range from $14 to $18/hour due to labour market competition.
Frequently Asked Questions
What is the average salary in Austin, Texas, in 2026?
The average salary in Austin is approximately $82,400 in 2026, reflecting the city’s transformation into a major technology hub. Senior software engineers at major tech companies earn $150,000–$250,000 in total compensation.
Does Texas have state income tax?
No. Texas has no state income tax. This is one of the state’s most significant financial advantages for high earners relocating from California, New York, or other high-tax states.
University Magazine is part of the 
