With over 30 million inhabitants, Texas is the second most populous state in the USA.

Between 2000 and 2022, Texas added 9,085,073 residents, more than any other state, according to the U.S. Census Bureau.

No state income tax, a booming job market and affordable cost of living are some of the most common reasons people move to the Lone Star State, according to real estate company Redfin.

However, data from the Missouri Economic Research and Information Center shows that Texas is not among the states with the lowest cost of living.

Places with the lowest cost of living in 2023

These are the five states with the lowest cost of living, according to MERIC data:

5. Alabama

4. Missouri

3. Kansas

2. Oklahoma

1. Mississippi

Is life in Texas cheap?

Overall, the cost of living in Texas is more affordable than in most other US states.

Despite its popularity among people looking to relocate, Texas is not among the top 10 states with the lowest overall cost of living. Certain expenses in the state, such as utilities and healthcare costs, scored higher than other states with high overall costs of living.

According to the composite cost of living index data for the first quarter of 2023, Texas ranked 17th among states with the lowest cost of living. The overall cost of living index was 93 – the lowest being Mississippi at 85.3 and the highest being Hawaii at 179.

Here’s a breakdown of how certain expenses were rated in Texas. The cost of living index ranged from 96.6 or less to 134.5 or more.

• Food: 94.8

• Housing: 84.2

• Additional costs: 105.7

• Transportation: 92.6

• Health: 94.1