Dallas vs Omaha: cost of living compared
Omaha is 19% cheaper than Dallas overall. Dallas (TX) has no state income tax; NE tops out around 5.84%.
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
Omaha offers a significantly lower overall cost of living compared to Dallas, which is slightly above the national average. This substantial difference is primarily driven by housing expenses, which are dramatically more affordable in Omaha. Other categories like transportation, food, and miscellaneous goods and services also contribute to Omaha's more budget-friendly profile, making it a considerably cheaper place to live day-to-day.
Housing
Housing costs present the most striking difference between the two metros. Both median home prices and typical one-bedroom rents are substantially lower in Omaha. While Dallas housing is roughly on par with the national average, Omaha's housing market is noticeably more affordable for both buyers and renters. Property taxes and insurance costs can vary, but the initial purchase price and monthly rent show a clear advantage for Omaha.
Taxes and everyday costs
Beyond housing, daily expenses also lean in Omaha's favor. Transportation costs are considerably lower there, and residents also benefit from lower prices for groceries, healthcare, and utilities. A significant factor is Nebraska's state income tax, which is absent in Texas, impacting take-home pay. This means that everyday spending on essentials will generally be more economical in Omaha.
Lifestyle trade-offs
Dallas offers a warmer, often humid climate with hot summers, while Omaha experiences more distinct four-season weather, including cold winters and hot summers. Getting around Dallas typically involves navigating a larger, more spread-out urban environment, often relying on personal vehicles. Omaha generally has a more relaxed pace and less dense development, with shorter average commute times, though both metros are car-dependent.
Bottom line
For households prioritizing a lower cost of living, Omaha presents a compelling advantage, particularly due to its much more affordable housing market. While Dallas offers a larger metropolitan experience, the financial impact of moving to Omaha would likely result in significant savings across nearly all budget categories. The absence of state income tax in Texas is a notable financial difference, but overall expenses are still higher in Dallas.
| Measure | Dallas, TX | Omaha, NE |
|---|---|---|
| Overall cost of living (US avg = 100) | 105 | 85 |
| Housing index | 99 | 67 |
| Transportation index | 104 | 80 |
| Food index | 98 | 88 |
| Healthcare index | 102 | 90 |
| Utilities index | 105 | 92 |
| Misc index | 98 | 82 |
| Median home price | $358,000 | $238,000 |
| Median 1-bedroom rent | $1,450/mo | $1,000/mo |
| Average commute | 29 min | 22 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Omaha home with the True Cost Calculator.