Austin vs Sacramento: cost of living compared
Sacramento is 8% more expensive than Austin overall. Austin (TX) has no state income tax; CA tops out around 9.3%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Sacramento generally presents a higher overall cost of living compared to Austin. While housing costs are remarkably similar between the two metros, other significant expenses contribute to Sacramento's higher price tag. This difference means that while your home might cost roughly the same, your day-to-day expenses in Sacramento will likely be noticeably higher, impacting your budget beyond just shelter.
Housing
Both Austin and Sacramento show similar median home prices and rental costs for a one-bedroom. This suggests that the initial investment in housing is comparable. However, property taxes and insurance costs can vary significantly by state. Austin's housing stock often includes a mix of traditional and modern homes, while Sacramento features a range from historic to newer developments, with both offering diverse options.
Taxes and everyday costs
A major difference in everyday spending comes from state income tax; California has a substantial state income tax, while Texas does not. Beyond that, Sacramento's transportation, food, healthcare, and utility costs are all somewhat higher than Austin's. This means that nearly every aspect of daily spending, from groceries to getting around, will be more expensive in Sacramento.
Lifestyle trade-offs
Austin offers a warm, humid subtropical climate with hot summers, while Sacramento has a Mediterranean climate with hot, dry summers and mild, wet winters. Both metros experience similar average commute times. Austin is known for its vibrant cultural scene and outdoor activities, often feeling dynamic and expansive. Sacramento, as a state capital, has a more established, perhaps slightly slower pace, with access to nearby natural attractions.
Bottom line
For households weighing a move, the similar housing costs in Austin and Sacramento are a notable point. However, the absence of a state income tax in Texas, combined with generally lower costs for transportation, food, healthcare, and utilities, means Austin offers a more budget-friendly lifestyle overall. Your purchasing power for daily necessities will stretch further in Austin, despite the comparable housing market.
| Measure | Austin, TX | Sacramento, CA |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 128 |
| Housing index | 132 | 132 |
| Transportation index | 109 | 110 |
| Food index | 102 | 108 |
| Healthcare index | 102 | 108 |
| Utilities index | 112 | 125 |
| Misc index | 102 | 105 |
| Median home price | $498,000 | $498,000 |
| Median 1-bedroom rent | $1,750/mo | $1,750/mo |
| Average commute | 30 min | 30 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Sacramento home with the True Cost Calculator.