Cost of Living in Waco, TX

How far does a $70,000 salary go in Waco? Estimated income taxes on that gross salary total approximately $7,241 per year — Texas levies no state income tax, so that figure covers federal tax only. Subtract rent for a 2-bedroom apartment ($1,240/month based on HUD Fair Market Rents for the Waco metro area) and the estimated annual take-home is $47,879, or roughly $3,990 per month for everything else: food, transportation, savings, and discretionary spending.

The Waco metro has a cost of living index of 77.3 according to the Bureau of Economic Analysis Regional Price Parities (national average = 100). At 23% below the national average, Waco is a genuinely affordable metro where everyday expenses stretch further than in most cities.

At a $70,000 salary, the estimated 2-bedroom rent in Waco represents approximately 21% of gross income. That falls comfortably below the 30% rent-burden guideline, a healthy position for building savings. Texas's zero income tax helps offset the rent burden compared to otherwise similar cities that also levy state income tax.