What Is The Cost Of Living In Oklahoma Vs. Texas?
While Oklahoma has a productive economy, moderate living expenses, and enjoyable four-season living, Texas is culturally diverse, centrally located, and offers abundant job opportunities. If you’re trying to relocate and can’t decide whether Oklahoma or Texas is right for you and your family, cost of living is an important consideration.
Oftentimes, it is the primary factor that people use to determine whether they want to live in one place versus another. So, how do these two states compare when it comes to cost of living?
The cost of living index in Oklahoma is 83.7, meaning it is about 16% more affordable to live in Oklahoma than the national average (100). Texas, on the other hand, has a cost of living index of 93.9, so it is more expensive than Oklahoma but still less than the national average. The median price of a home in Oklahoma is just $146,600, which is about 50% lower than the national average of $291,700. Meanwhile, the median home price in Texas is $243,600 – still under the national average but 66% higher than Oklahoma.
Aside from median housing prices, let’s explore how the cost of living compares in Oklahoma vs. Texas.
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Housing Market in Oklahoma vs. Texas
When you evaluate the fact that the median home price in the state of Oklahoma is only $145,600, it is quite a bit cheaper to purchase a home here than in Texas. With Texas’ median home price of $243,600, you’re looking at spending 66% more for a home in Texas than Oklahoma.
A recent study ranked Oklahoma as the fourth cheapest housing market in the country. Experts suggest that the state is a great place to take advantage of the low-interest rates and buy a home. However, as of 2021, Oklahoma’s housing market continues to boom with a limited supply of properties on the market and a much larger pool of individuals interested in buying.
Because of the competition and supply and demand problem, homes in Oklahoma are more expensive than normal. While it’s a great time to be a seller in Oklahoma, homebuyers need to be a little more strategic. A very similar situation is taking place in Texas too, as home values have increased by roughly 8.5 percent over the last year.
This was a direct result of the limited inventory, with homes on the market receiving several offers and most selling for above the asking price. While it may be an excellent time to be a seller in both Oklahoma and Texas, competition is steep and prices are much more expensive than normal for buyers. Regardless, even with the higher prices, it still remains considerably more affordable to buy a home in Oklahoma than Texas.
Home Prices in Oklahoma vs. Texas Comparison
Median home prices are ultimately based on the specific city and county that you live in in a particular state, and this is the case for both Oklahoma and Texas. The following table outlines some of the major cities in Oklahoma and Texas, along with their applicable median home prices:
City | Median Home Price |
Oklahoma City, OK | $165,200 |
Tulsa, OK | $150,500 |
Norman, OK | 193,800 |
Houston, TX | $220,000 |
Austin, TX | $551,200 |
Dallas, TX | $259,800 |
As you can see from the table above, median home prices vary across both Oklahoma and Texas. While the median home price in Texas is below the national average, there are some cities that are actually considerably above – like Austin with its’ median home price of $551,200. When it comes to Oklahoma, however, it is highly unlikely that you’ll ever pay above the national average for a home. In fact, lower housing costs overall are a significant advantage to living in Oklahoma over Texas.
Housing costs in Oklahoma are almost 50% lower than the national average. Although both states have housing costs below the national average, homes are still between 35 and 40 percent cheaper in Oklahoma than Texas.
Rent Prices in Oklahoma vs. Texas
There are twenty-one total states in the U.S. with average monthly rental rates below $1,000 and only three states with rents below $700 a month. With a statewide average rent of just $699 per month, Oklahoma is considered an incredibly affordable place for renters. Generally speaking, states that have the lowest rental prices also have some of the lowest costs of living, and this is certainly true for Oklahoma.
Though, in Oklahoma, the rental market is almost just as busy as the buyer’s market. Like buying a home, it is also more expensive to rent in the state than it used to be, with rental prices up all across Oklahoma. With that said, the table below provides a more comprehensive look at the average monthly rent in some of the major cities in Oklahoma:
City | Average Rent |
Oklahoma City, OK | $874 |
Tulsa, OK | $760 |
Norman, OK | $987 |
Stillwater, OK | $833 |
Broken Arrow, OK | $1,020 |
Moore, OK | $849 |
During 2019 and 2020, average monthly rent prices dropped in 12 U.S. states, with Texas included. At $1,045, average monthly rental rates in Texas cities are typically below the national average – though, not as affordable as Oklahoma. Like Oklahoma, your actual rent will depend on where you live in Texas. For instance, Flower Mound, Texas has the most expensive rental prices in the state at $1,685, while Brownsville is the cheapest place for renters in Texas, at just $730 per month.
The following table displays a more detailed look at the average rent in some of Texas’ major cities:
City | Average Rent |
Houston, TX | $1,205 |
Austin, TX | $1,619 |
Dallas, TX | $1,383 |
San Antonio, TX | $1,151 |
Fort Worth, TX | $1,273 |
Irving, TX | $1,303 |
Taxes in Oklahoma vs. Texas
There are some distinct differences between the taxes in Oklahoma versus the taxes in Texas, highlighted in detail below.
State Income Tax
Similar to the federal income tax, Oklahoma has a progressive income tax system. This means that the state income tax that you pay in Oklahoma is based on your income, with low-income earners paying lower rates and high-income earners pay higher rates. Oklahoma has six income tax brackets in total, with rates ranging from as low as 0.5% to a top rate of 5% for those who make over $7,200 in taxable income. This top marginal rate is in the bottom half of all the state in the U.S.
Texas, on the other hand, is also one of the few states in the country that does not levy a state income tax of any kind. This means that whether you’re a lawyer, teacher, real estate agent, doctor, or nanny, you are not required to pay a state income tax on your annual earnings in Texas. You do, however, still have to file a federal income tax return and pay your federal income taxes each year.
Sales Tax
The base sales tax in Oklahoma is 4.50%, which alone is the 14th-lowest in the nation. However, Oklahoma has some of the highest local sales taxes in the country. When you combine city and county sales tax rates, they can add up to as much as 7%. This means that you could pay as much as 11.5% in sales tax in Oklahoma.
Texas, on the other hand, has a higher base sales tax rate – at 6.25%. Though, when you consider additional city and county taxes, the highest sales tax rate you could end up paying in Texas is 8.25%. However, rates in most of Texas’ major cities – such as Houston, Dallas, and San Antonio – do hit this limit.
Property Tax
Oklahoma homeowners pay an average of $1,278 a year in property taxes. This average puts the state among the 10 lowest property tax payments in the country. Though, it’s also important to note that home values are considerably lower than average in Oklahoma. This causes the average effective property tax rate (taxes as a percentage of home’s assessed value) to be 0.85%, which is the 25th-lowest in the country. However, rates vary based on the county you live in – from 0.41% in Murray County to as high as 1.16% in Cleveland County.
Dissimilarly, property taxes in Texas are among the highest in the country. Texas’ average effective property tax rate is an astonishing 1.69%, meaning those who own property in Texas pay 1.69% percent of their home’s market value in taxes each year. This equates to a statewide average of $3,390 in annual property taxes for Texas homeowners.
Taxes in Oklahoma vs. Texas Comparison
State | Income Tax | Sales Tax | Property Tax |
Oklahoma | 0.5% – 5% | 4.5% to 11.5% | 0.87% (average effective rate) |
Texas | None | 6.25% – 8.25% | 1.69% (average effective rate) |
Transportation Costs in Oklahoma vs. Texas
Whether you choose to live in Oklahoma or Texas, it’s important that you also consider transportation costs. Expenses like gas prices, new vehicle purchase prices, bus fares, transit passes, and other public transportation costs also play a role in a state’s overall cost of living.
With Oklahoma’s transportation cost index of 89.2 and Texas’ transportation cost index of 103.3, these expenses are more expensive in Texas overall. Based on the table below, you can see that Oklahoma residents enjoy cheaper gas prices, public transportation, and even new vehicle purchase costs.
Cost Factor | Oklahoma | Texas |
Gallon of gas | $2.17 | $2.15 |
Monthly public transit pass | $39.88 | $45.92 |
Taxi trip in downtown (approx. five miles) | $17.17 | $14.26 |
New Volkswagen Golf | $21,750 | $22,016 |
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Entertainment & Miscellaneous Costs in Oklahoma vs. Texas
Cost Factor | Average Price in Oklahoma | Average Price in Texas |
Monthly local gym membership | $30.11 | $33.11 |
Movie ticket | $10.25 | $10.01 |
Pack of cigarettes | $6.98 | $6.85 |
Domestic beer (1 pint) | $3.42 | $3.77 |
Cappuccino (mid-range area) | $3.71 | $4.15 |
Pair of running shoes | $75.12 | $70.86 |
Fast food combo meal | $7.48 | $7.25 |
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Jessica considers herself a home improvement and design enthusiast. She grew up surrounded by constant home improvement projects and owes most of what she knows to helping her dad renovate her childhood home. Being a Los Angeles resident, Jessica spends a lot of her time looking for her next DIY project and sharing her love for home design.
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