Is Austin, TX cheaper than Palo Alto, CA?

Based on cost of living data, Austin, TX is 38.4% cheaper than Palo Alto, CA. This translates to saving $2883 per month.

What salary do I need in Austin, TX to live like I do in Palo Alto, CA?

If you earn $150,000 in Palo Alto, CA, you'd need approximately $115,402.04 in Austin, TX to maintain the same standard of living.

How does housing cost compare between Palo Alto, CA and Austin, TX?

Housing in Austin, TX is 56.9% cheaper than in Palo Alto, CA. For a two-bedroom apartment, rent is $1,995/month in Austin, TX compared to $3,266/month in Palo Alto, CA.

How much can I save per month by moving from Palo Alto, CA to Austin, TX?

Moving from Palo Alto, CA to Austin, TX could save you approximately $2883 per month, or $34598 per year, based on a $150,000 salary.

Palo Alto, CA vs Austin, TX: Cost of Living Comparison 2026

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Cost of Living Comparison 2026

📍 Palo Alto, CA — ZIP-level rent data · COL adjusted from Fremont, CA area

Current salary in Palo Alto, CA

Numbers update automatically as you type

You'd save $2.9K/month moving to Austin, TX

$150.0K in your current city equals $115.4K in Austin, TX

Rent data from HUD ZIP-level estimates · COL index from San Jose-Sunnyvale-Santa Clara, CA area

Overall Cost

↓ 38.4%

Less expensive

Monthly Impact

$2,883

Savings

Annual Impact

$34.6K

Per year

Based on monthly living costs (rent, groceries, utilities, transport, healthcare). Home purchase prices shown separately below.

Palo Alto, CA

Population:66K

Cost Index:100

Median Home:$3.33M

Austin, TX

Population:979K

Cost Index:62

Median Home:$558K

Palo Alto, CA

The Golden State

66K

Population

State Tax

Yes

Located in California, this city has a population of 66K residents.

Austin, TX

The Lone Star State

979K

Population

State Tax

No Income Tax

Climate

Humid subtropical

Notable Facts

•Live music capital
•Major tech hub
•SXSW festival city

Major Industries

TechnologyMusic IndustryEducationGovernment

Cost Breakdown by Category

Annual spending: Palo Alto, CA vs Austin, TX

Category	Palo Alto, CA	Austin, TX	Difference	Change
🏠Housing	$6,689/mo	$2,885/mo	↓ $3,805less	56.9%
🛒Groceries	$1,114/mo	$959/mo	↓ $154less	13.9%
🏥Healthcare	$697/mo	$589/mo	↓ $108less	15.5%
🚗Transportation	$1,369/mo	$1,284/mo	↓ $84.68less	6.2%
⚡All Utilities	$458/mo	$541/mo	↑ $82.86more	18.1%
📦Other	$1,775/mo	$1,741/mo	↓ $34.08less	1.9%

🏠Housing

↓ 56.9%

Palo Alto, CA

$6,689

Austin, TX

$2,885

Difference

$3,805

less

🛒Groceries

↓ 13.9%

Palo Alto, CA

$1,114

Austin, TX

$959

Difference

$154

less

🏥Healthcare

↓ 15.5%

Palo Alto, CA

$697

Austin, TX

$589

Difference

$108

less

🚗Transportation

↓ 6.2%

Palo Alto, CA

$1,369

Austin, TX

$1,284

Difference

$84.68

less

⚡All Utilities

↑ 18.1%

Palo Alto, CA

$458

Austin, TX

$541

Difference

$82.86

📦Other

↓ 1.9%

Palo Alto, CA

$1,775

Austin, TX

$1,741

Difference

$34.08

less

🏠Rent Comparison

Studio

From$2,456

To$1,585

↓ $871

1 Bed

From$2,795

To$1,685

↓ $1,110

2 Bed

From$3,266

To$1,995

↓ $1,271

3 Bed

From$4,316

To$2,525

↓ $1,791

Palo Alto, CAZIP-level data

1BR range: $3,240–$3,650/mo

Austin, TXZIP-level data

1BR range: $1,490–$2,350/mo

💡 Note: Rent prices are based on HUD Fair Market Rent data and represent median costs. Actual prices vary by neighborhood, amenities, and condition. Source: HUD Small Area Fair Market Rents FY2026.

$12,101

Monthly in Palo Alto, CA

$7,998

Monthly in Austin, TX

$4,103

Difference

Home Values

Palo Alto

Austin

$3.33M

Median Value

$558K

↑ +3.7%

YoY Change

↓ -5%

↑ +28.5%

5-Year Change

↑ +12.6%

$3.21M - $4.19M

Price Range

$272K - $1.26M

Homes in Austin are 83% less expensive than Palo Alto

Calculate payment - Palo Alto Calculate payment - Austin

Source: Zillow Home Value Index (ZHVI), January 2026

Tax Comparison

Annual tax burden comparison at $150.0K salary

Tax Savings

↑ $10.6K

Per year

Monthly Difference

$886

More take-home

Effective Rate Diff

7.1%

Rate difference

Palo Alto, CA

Federal Income Tax

Effective: 18.9%

$25.5K

California State Tax

Effective: 7.1%

$10.6K

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 31.8%

$47.6K

Take-Home Pay

$8,530/month

$102.4K

Austin, TX

Federal Income Tax

Effective: 18.9%

$25.5K

Texas State Tax

No state income tax

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 24.7%

$37.0K

Take-Home Pay

$9,416/month

$113.0K

Additional Tax Information

Palo Alto, CA Tax Rates

Sales Tax:10.5%

Property Tax:0.8%

Austin, TX Tax Rates

Sales Tax:8.2%

Property Tax:1.8%

💡 Note: Tax calculations are estimates based on 2024/2025 tax brackets for single filers with standard deduction. Actual taxes may vary based on filing status, deductions, credits, and local variations.