Dallas is a fast-growing and highly desirable city to live in. It’s ranked city No. 24 on U.S. News & World Report’s “Best Places to Live” list for a good reason. In Dallas, you can find big-city vibes as well as toned-down suburban-style living depending on where you settle down — making it suitable for any lifestyle.
The cost of living in Dallas is 7.7 percent higher than the national average, but it still costs less to live here than in cities like Los Angeles, Boston and Chicago. Within Dallas, the average rent is declining year-over-year, and if you have ever considered moving to Dallas, now is the time!
Before moving to Dallas, you should consider some basic expenses like housing, food and utilities. These are all common things to think about before making your move. The below sections will help you determine if living in Dallas makes sense for you.
- Housing costs in Dallas
- Food costs in Dallas
- Utility costs in Dallas
- Transportation costs in Dallas
- Healthcare costs in Dallas
- Goods and services costs in Dallas
- Taxes in Dallas
- How much do you need to earn in Dallas?
Housing costs in Dallas
Experts predict the Dallas-Fort Worth metroplex to rank as the sixth-hottest housing market in the nation in 2021.
With that being said, you should know that the cost of living in Dallas for housing is 15.9 percent above the national average and properties do not sit on the market long. Don’t let that deter you from rolling your sleeves up and going after what you want. Just keep in mind that the market is pretty competitive.
Some of the most expensive neighborhoods to live in Dallas are Knox/Henderson, East Dallas, Main Street District and Vickery Place. To reside in one of these neighborhoods, you will find yourself paying $2,000 to $2,500 on average monthly rent for a one-bedroom apartment. Don’t worry though — you get your money’s worth. These neighborhoods are known for their walkability factor, unique restaurant options and upscale services.
On the other hand, you can live in neighborhoods like Highland Hills, Southeast Dallas or Riverway Estates and rent a one-bedroom for under $800. It depends on which amenities are important to you and the lifestyle you want to live within the city.
If you’re house hunting, you’ll also find a vast range of options. According to Redfin, the Dallas home market is up 17.1 percent since last year, and the median sale price is $410,000 — well above the national average of $353,000.
Food costs in Dallas
Food costs in Dallas are right around the national average, making it very reasonable to fill your belly and not break the bank. You can balance dining out at fancy rooftop restaurants with cost-effective home-cooked meals since groceries here remain fairly priced.
If you’re shopping for supermarket staples, you’ll see ground beef costs $4.42, a half-gallon of milk costs $1.97 and eggs are $1.15 for a dozen. There are also farmer’s markets on the weekends, specialty grocery stores for unique items or low-cost grocery stores for everyday essentials.
The foodie scene here is incredible, too. The benefit of living in Dallas means the meal options are endless — you can find something to fit any budget. You can score a food truck meal for under $5. Not into that? Scour the city for the best burger and pay $18 a pop.
Living in Dallas means getting used to having casual eateries, mid-priced options or five-star restaurants with highly accredited chefs right at your fingertips.
Utility costs in Dallas
What you pay for utilities will rely on usage, but you can expect them to run 8 percent above the national average. In case you haven’t heard, Texas summers are sizzling hot.
A monthly energy bill is close to $200, higher than in New York, Atlanta and even Los Angeles. Trying to stay cool in Dallas is no joke so just prepare to crank up that A/C.
The monthly cost of a phone bill is around $185, the internet is $45 and water bills are usually under $100. The cost of water is high in Texas due to the dry climate.
Transportation costs in Dallas
It’s very reasonably priced to get around Dallas, whether you own a car, take advantage of public transportation or use ride-booking services in the city. Dallas has a transit score of 45, a walk score of 57 and a bike score of 56.
There are newly built highways and toll roads that make getting from one side of Dallas to the other a breeze. If you own a Toll Tag, you get a special toll rate of 19 cents per mile — worth the initial $40 payment.
Dallas also has the DART (Dallas Area Rapid Transit) system, so if you don’t want to get behind the wheel, you buy a daily pass for $6 or a monthly pass for $96.
Transportation costs in Dallas are 6.8 percent under the national average. A gallon of regular unleaded gas costs $1.92 and is cheaper than in other large, popular Texas cities like Houston and Austin.
Healthcare costs in Dallas
Healthcare requirements vary so much from person to person, so it’s tough to come up with an average for overall healthcare. Just know that whether you are seeking a general family doctor, an emergency comes up or you need special medical attention, Dallas has elite healthcare providers, services, hospitals and facilities.
Medical City Dallas is an example of a leading health care provider. It’s one of the largest in the region and includes 16 hospitals employing over 17,000 employees.
Healthcare costs in Dallas remain steep — 13.8 percent higher than the national average. A doctor visit will run you $121, a trip to the dentist costs $134 and seeing the optometrist is $98.
Goods and services costs in Dallas
Aside from the essential bills, the goods and services category encompasses anything that is not consumable.
Dallas ranks 7.1 percent higher than the national average in this category. Examples include office pens, a new hairbrush, a movie ticket and services like dog grooming, landscaping and home repairs.
Dallas is a very pet and dog-friendly city but just know that a trip to the vet will set you back $64
A trip to a beauty salon averages $45, a movie ticket runs $11 and a yoga costs about $21 per class.
Taxes in Dallas
Fun little fact: There’s no state or local personal income tax in Texas. That means that there are no taxes at a state level for Social Security benefits, pensions, 401(k)s or any other type of retirement income. This helps save a bit of money and offsets the high property taxes, but you don’t have to worry about that if you’re renting.
Texas’ statewide sales tax is a modest 6.25 percent, but total sales taxes, including county and city taxes, sit at 8.25 percent. So, f you spend $100 in Dallas, you can expect to pay $8.25 in sales tax or less.
Dallas residents also benefit from three Texas tax-free weekends where the state and local taxes get waived for specific items.
How much do you need to earn in Dallas?
Experts suggest you not spend more than 30 percent of your annual income on housing.
If you take the average rent price for a one-bedroom in Dallas, which is $1,390, and multiply that by 12, you get what you need for housing for the year — $16,680.
So, to cover for housing that is 30 percent of your annual income, you need to earn at least $55,600 annually in Dallas. For more specific needs you can use our rent calculator.
Living in Dallas
While there are many things to consider before moving to Dallas, this vibrant city has a lot to offer. From budget-friendly living to lavish lifestyles and everything in between, Dallas is a great place to plant your roots and call home.
