Texas is one of the largest and most economically diverse states in the United States, with a workforce spanning energy, technology, healthcare, finance, and manufacturing sectors.
As of 2026, the statewide median annual wage in Texas is approximately $54,000–$56,000, based on Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) data.
Texas consistently ranks near the national median for wages, though this statewide figure masks significant variation between high-cost urban centers like Austin and Dallas and more rural areas.
One of the most frequently noted features of working in Texas is the absence of a state income tax, which effectively increases take-home pay compared to workers in states with comparable gross wages but higher state tax rates.
This guide covers Texas salary data by major city, industry, and occupation, with context for understanding how wages compare to the national picture.
For housing and living expense context, see our full breakdown of the cost of living in Texas.
Texas Statewide Wage Data
According to the Bureau of Labor Statistics Occupational Employment and Wage Statistics for Texas, the mean annual wage for all occupations in Texas was approximately $62,000–$65,000, while the median annual wage was approximately $54,000–$56,000.
As with most wage data, the mean is pulled upward by high earners in executive and professional occupations, making the median more representative of typical worker earnings.
Texas employment is spread across a broad range of industries, with no single sector dominating as completely as in some smaller states.
This diversification provides relative economic resilience and means that average wages reflect a blend of high-paying professional and energy-sector jobs alongside large numbers of service, retail, and construction workers who earn closer to the median or below.
Texas vs. National Wage Comparison
The national median annual wage for all occupations was approximately $48,000–$50,000 according to BLS OEWS data for 2024, suggesting that Texas wages are modestly above the national median.
However, the no-state-income-tax advantage means that a worker in Texas earning $54,000 gross typically retains more of that income than a comparable worker in California, New York, or Illinois earning the same gross wage.
Texas's relatively lower cost of housing in most markets (compared to coastal cities) further enhances the real purchasing power of Texas wages for many workers.
Workers benchmarking their income can also consult our guide on the average salary in Florida, another no-income-tax Sun Belt state.
Average Salary by Major Texas City
Wages in Texas vary considerably by metro area, reflecting differences in industry concentration, cost of living, and labor market competition.
Austin
Austin has emerged as one of the fastest-growing tech hubs in the United States, attracting major technology employers and driving wages — particularly for software engineers, data professionals, and product managers — well above the Texas median.
The Austin-Round Rock-Georgetown metropolitan statistical area reports median annual wages among the highest in Texas, with overall median wages approximately 15–25% above the statewide median for full-time workers.
Technology and professional services workers in Austin can expect annual salaries of $80,000–$130,000 or more depending on experience and specialization.
However, Austin's rapid growth has also driven housing costs sharply higher, partially offsetting wage advantages.
Dallas-Fort Worth
The Dallas-Fort Worth metroplex is the largest metro area in Texas and one of the largest in the United States.
DFW has a highly diversified economy including finance, telecommunications, healthcare, logistics, and corporate headquarters of major national companies.
Median wages in the Dallas MSA are broadly in line with the statewide median, with higher concentrations of high-paying finance and corporate management roles in Dallas proper and more variable wages across the broader metro area.
Finance and insurance professionals in Dallas often earn $70,000–$120,000+ depending on role and seniority.
Houston
Houston's economy is closely tied to the energy sector — particularly oil and gas — which drives some of the highest wages in Texas for workers in petroleum engineering, upstream operations, and energy finance.
The Houston-The Woodlands-Sugar Land MSA reports above-average wages relative to other Texas metros for energy-related occupations, with petroleum engineers among the highest-paid workers in the state.
Median wages across all occupations in Houston are broadly similar to or slightly above the Texas statewide median, though wage distributions vary considerably by sector.
San Antonio
San Antonio's economy includes significant healthcare, military, and tourism components, with a somewhat lower wage profile than Dallas, Houston, and Austin.
The San Antonio-New Braunfels MSA reports median annual wages modestly below the Texas statewide median, reflecting a higher concentration of healthcare support, hospitality, and service sector employment.
However, San Antonio's lower housing costs relative to Austin or Dallas mean that real purchasing power may be competitive for workers in certain income ranges.
Healthcare workers, particularly registered nurses and allied health professionals, represent some of the stronger wage earners in the San Antonio metro.
High-Paying Industries in Texas
Certain industries in Texas pay substantially above the statewide median, reflecting specialized skills, market demand, and the concentration of particular sectors in Texas metros.
Technology and Software
Texas's growing technology sector — concentrated in Austin, Dallas, and increasingly Houston — offers some of the highest wages in the state.
Software developers, data scientists, cybersecurity professionals, and cloud engineers can typically expect annual salaries of $90,000–$150,000 or more at mid-career levels.
Texas has actively recruited technology companies to relocate from California and other high-cost states, contributing to continued growth in tech employment and wages.
The BLS Occupational Outlook Handbook provides national wage data for technology occupations that can serve as a benchmark for Texas-specific compensation discussions.
Energy Sector
Texas's oil and gas industry remains a significant source of high-paying jobs, particularly for petroleum engineers, geoscientists, drilling supervisors, and energy finance professionals.
BLS OEWS data consistently shows petroleum engineers among the highest-paid occupations nationwide, with median annual wages exceeding $130,000.
Energy sector wages in Texas tend to fluctuate with oil prices, with compensation often including performance bonuses tied to production metrics.
Healthcare
Healthcare is among the largest employment sectors in Texas, and demand for registered nurses, physicians, physician assistants, and advanced practice nurses continues to grow given the state's large and growing population.
Texas physicians earn median annual wages typically ranging from $200,000 to over $300,000 depending on specialty and practice setting. Registered nurse salary in Texas runs approximately $75,000–$85,000 according to BLS OEWS data, with higher pay in major metro areas and specialized settings.
For those interested in advanced nursing roles, see the nurse practitioner salary guide.
Texas Tax Advantage: No State Income Tax
Texas is one of nine U.S. states with no state individual income tax, meaning workers keep a larger share of gross earnings compared to employees in states like California (top rate 13.3%), New York (up to 10.9%), or Illinois (4.95% flat rate).
According to Census Bureau income data, take-home pay comparisons across states must account for both federal income tax (identical across states for the same income level) and state income tax, which can represent a meaningful difference in net pay for workers earning above median wages.
For a Texas worker earning $60,000 annually, the absence of state income tax might represent an additional $2,000–$3,000 in annual take-home pay compared to a comparable worker in a state with a 3.5–5% flat income tax.
At higher incomes, the advantage grows proportionally.
Texas does impose higher property taxes than many states, which partially offsets the income tax advantage for homeowners, and sales taxes are also on the higher end nationally.
After securing a strong salary, Texas workers should consider channeling the tax savings into a high-yield savings account or retirement contributions to build long-term wealth.
Frequently Asked Questions
What is the average salary in Texas?
According to Bureau of Labor Statistics Occupational Employment and Wage Statistics data, the median annual wage for all occupations in Texas is approximately $54,000–$56,000 as of the most recent survey period.
The mean (average) annual wage is higher, approximately $62,000–$65,000, pulled upward by high earners in executive, technology, and energy sector roles.
Wages vary significantly by city, industry, and occupation.
How does the lack of state income tax affect Texas salaries?
Texas has no state individual income tax, which means workers retain a higher percentage of their gross wages compared to employees in states with state income taxes.
For a worker earning $60,000 annually, this can translate to approximately $2,000–$4,000 more in annual take-home pay compared to a state with a 3.5–6% income tax rate.
At higher income levels, the advantage is larger.
Texas does have higher-than-average property taxes and sales taxes, which partially offset this advantage for residents.
What are the highest-paying jobs in Texas?
Among the highest-paying occupations in Texas based on BLS OEWS data are physicians and surgeons, petroleum engineers, software developers and architects, chief executives, airline pilots, financial managers, and lawyers.
These occupations typically earn annual wages well above $100,000, with physicians and senior executives earning several multiples of the statewide median.
The energy sector and healthcare industry are particularly strong sources of high-compensation employment across the state.
For more detail, see our salary guides for physician salary, lawyer salary, and software engineer salary.
Is Austin a high-salary city in Texas?
Yes.
Austin has become one of the highest-wage metros in Texas driven primarily by growth in the technology sector.
Software engineers, product managers, data scientists, and technology executives in Austin typically earn salaries significantly above the Texas statewide median, often in the $90,000–$150,000+ range for mid-career professionals.
However, Austin's rapid population growth has also driven housing costs substantially higher, which partially offsets the wage advantage in terms of purchasing power and cost of living.
How do Texas wages compare to the national average?
Texas median wages are modestly above the national median for all occupations.
The national median annual wage for all occupations was approximately $48,000–$50,000 per BLS data, while Texas's median is approximately $54,000–$56,000.
In certain high-paying sectors — particularly technology in Austin and energy in Houston — Texas wages are competitive with or exceed national averages for those occupations.
The absence of state income tax also means that Texas workers' after-tax pay compares more favorably to national peers than gross wage figures alone suggest. Once you know your income level, tools for salary negotiation strategies can help you push toward the higher end of your range.
Sources & References
- Bureau of Labor Statistics. 'Occupational Employment and Wage Statistics: Texas.' BLS.gov. — https://www.bls.gov/oes/current/oes_tx.htm
- Bureau of Labor Statistics. 'Occupational Outlook Handbook: Computer and Information Technology.' BLS.gov. — https://www.bls.gov/ooh/computer-and-information-technology/home.htm
- U.S. Census Bureau. 'Income in the United States.' Census.gov. — https://www.census.gov/topics/income-poverty/income.html
- Bureau of Labor Statistics. 'Occupational Employment and Wage Statistics: National.' BLS.gov. — https://www.bls.gov/oes/current/oes_nat.htm
- Bureau of Labor Statistics. 'Occupational Outlook Handbook: Petroleum Engineers.' BLS.gov. — https://www.bls.gov/ooh/architecture-and-engineering/petroleum-engineers.htm
Last updated: April 27, 2026