Cost-of-Living Comparison — Waco Metro Area¶
This guide helps people relocating from other metros understand how far their dollar goes in the Waco area. For detailed home prices, rent ranges, and property taxes by city, see the Housing & Real Estate Guide.
Bottom Line Up Front¶
Waco is approximately 10–17% cheaper than the U.S. national average depending on the source and lifestyle. Housing is the primary driver of savings. Texas has no state income tax, which is a significant benefit for most earners.
| Source | Waco vs. U.S. Average | Waco vs. Texas Average |
|---|---|---|
| BestPlaces | 16.6% cheaper | 11.5% cheaper |
| RentCafe | 9% cheaper | 2% cheaper |
| Redfin | 10% cheaper | — |
| ERI | 13% cheaper | 4% cheaper |
| Salary.com | 14% cheaper | — |
Variation across sources reflects different methodologies and basket of goods.
Cost-of-Living Index by Category¶
All figures are indexed where 100 = U.S. national average. Below 100 = cheaper than average.
| Category | Waco Score | Notes |
|---|---|---|
| Overall | ~83–90 | 10–17% below U.S. average |
| Housing | ~77 | 22.5% below national average — biggest savings driver |
| Groceries | ~93 | ~7% cheaper than national average |
| Utilities | ~104 | ~4% more expensive than national average (Texas summer A/C) |
| Healthcare | ~102 | ~2% more expensive than national average |
| Transportation | ~92 | Below national average; car-dependent city |
| Miscellaneous | ~95 | Slightly below average |
Source: BestPlaces, RentCafe, ERI (2025–2026 data)
Real Monthly Cost Estimates (February 2026)¶
Single Person¶
- Total estimated monthly cost: ~$2,125/month (excluding rent)
- With 1BR apartment: ~$3,370–$3,455/month all-in
Family of Four¶
- Total estimated monthly cost: ~$4,679/month (excluding rent/mortgage)
- With mortgage on median Waco home (~$210k, 30yr @ ~7%): add ~$1,395/month P&I
Specific Cost Data Points (Numbeo, Feb 2026)¶
| Item | Waco Price |
|---|---|
| 1BR apartment, city center | ~$1,245/mo |
| 1BR apartment, outside center | ~$1,330/mo |
| 3BR apartment, outside center | ~$1,349/mo |
| Basic utilities (915 sq ft) | ~$194/mo |
| Broadband internet | ~$66/mo |
| Mobile phone plan | ~$53/mo |
| Inexpensive restaurant meal | ~$20 |
| Mid-range dinner for two | ~$62.50 |
| McDonald's combo meal | ~$12 |
| Dozen eggs | ~$3.35 |
| Gasoline (per gallon, approx.) | ~$2.76 |
| Monthly public transit pass | ~$40 |
Average monthly net salary in Waco: ~$3,214 (Numbeo, Feb 2026)
Per-City Snapshot Comparison¶
For someone choosing between suburbs, this table provides a quick side-by-side. See Housing Guide for full detail on each city.
| City | Median HH Income | Median Home Value | Poverty Rate | School District | Niche Grade |
|---|---|---|---|---|---|
| Woodway | ~$115,122 | ~$405,000 | Low | Midway ISD (#1 McLennan Co.) | A+ |
| Robinson | ~$95,579 | ~$302,000 | 3.1% | Robinson ISD | A |
| Hewitt | ~$83,798 | ~$252,000 | Low | Midway ISD (#1 McLennan Co.) | A |
| Waco (city) | ~$45,000–$55,000 | ~$194,000–$218,000 | ~24% | Waco ISD | B |
| Bellmead | ~$45,000 | ~$155,000 | ~22% | La Vega ISD | C+ |
| Lacy Lakeview | ~$48,000 | ~$154,000–$160,000 | ~18% | Connally ISD | C+ |
Income and poverty data from U.S. Census / city README files. School grades from Niche.com.
Tax Environment¶
No State Income Tax¶
Texas has no state income tax. For someone earning $80,000/year moving from a state with 5% income tax, this is an immediate ~$4,000/year gain.
Property Tax Rates (2025)¶
Property taxes in Texas are based on a combined rate of several local jurisdictions. While city rates alone are quite low (e.g. $0.36 to $0.75), your actual combined bill (which includes County, local ISD, and community college taxes) will range between 1.7% and 2.3% across McLennan County.
Combined estimated rates (city + county + ISD + community college) per $100 assessed value:
| City | Municipal Rate (only) | Est. Combined Rate | Est. Annual Tax on $250k Home |
|---|---|---|---|
| Waco | $0.7550 | ~$2.254 | ~$5,635 |
| Lorena | $0.5639 | ~$2.064 | ~$5,160 |
| Hewitt | $0.5391 | ~$1.949 | ~$4,872 |
| Lacy Lakeview | $0.5325 | ~$2.013 | ~$5,032 |
| Robinson | $0.5099 | ~$1.927 | ~$4,817 |
| Bellmead | $0.3824 | ~$1.902 | ~$4,755 |
| Woodway | $0.3638 | ~$1.774 | ~$4,435 |
Source: McLennan County Tax Office and local ISD records. Homestead exemptions (which offer up to a $100,000 deduction off school taxes for primary residences) will reduce these nominal estimates. See the Housing Guide for a detailed tax breakdown.
Sales Tax¶
- Texas state sales tax: 6.25%
- City of Waco adds 2% = 8.25% total (same as most Texas cities)
- No city in McLennan County exceeds 8.25%
Utilities Cost Context¶
Utilities run slightly above the national average due to Texas summer air conditioning loads. See Utilities & Internet Guide for provider details.
- Average monthly electric bill: ~$150–$200+ in summer (July–August); ~$80–$120 in mild months
- Natural gas (Atmos Energy): ~$30–$60/month depending on season
- Water/wastewater: ~$50–$100/month depending on city and household size
- Internet: ~$60–$80/month for cable or fiber
Waco vs. Other Texas Cities¶
| City | Overall COL Index | Median Home | State Income Tax |
|---|---|---|---|
| Austin | ~125 (25% above avg) | ~$550,000 | None |
| Dallas | ~105 (5% above avg) | ~$370,000 | None |
| San Antonio | ~92 (8% below avg) | ~$255,000 | None |
| Waco | ~83–90 (10–17% below avg) | ~$194,000–$218,000 | None |
| Temple/Killeen | ~85 | ~$210,000 | None |
Waco offers the lowest cost of living among Texas cities of comparable amenity level.