Cost of Living in Waco, Texas
If you're considering a move to Waco, the most important question is: what does it actually cost to live here? Waco News has compiled the full picture — housing, taxes, utilities, transportation, groceries, healthcare — so you can plan accurately. Updated for 2026.
Quick summary
Estimated annual cost for a family of 4 in Waco
$55,000-$72,000
~20% below US average; one of the most affordable mid-size Texas cities
Housing costs
Median home prices
Median home price$190,000-$280,000
Median rent (2-bedroom)$1,000-$1,400
Property tax rate2.4-2.7%
HOA fees (typical)$0-$50/mo
Waco home prices have risen significantly since 2018 (partly Magnolia/Chip+Joanna effect) but remain well below Texas major-metro averages.
Taxes
State income tax0% (Texas has none)
Sales tax (state + local)8.25%
Property tax rate2.4-2.7%
Vehicle registration (annual)$50-$100
Texas has no state income tax. Property taxes apply but assessed values are typically lower than Houston/Dallas metros.
Utilities
Electricity (monthly avg)$120-$200
Water + sewer (monthly)$40-$70
Natural gas (monthly)$20-$40
Internet (100Mbps+)$55-$85
Trash + recycling (monthly)$15-$25
Transportation
Average commute10-20 min within city; ~90 min to Dallas or Austin
Gas price (per gallon)$2.80-$3.20
Public transit (monthly pass)Limited public bus
Car insurance (annual avg)$1,200-$1,700
Waco is small enough that most destinations are within a short drive. I-35 connects to Dallas and Austin. Car required.
Groceries and food
Family of 4 groceries (monthly)$800-$1,100
Average restaurant meal (2 people)$35-$65
Cost-of-groceries index (US=100)92
Healthcare
Primary care visit (no insurance)$100-$180
Avg family health insurance (employer)$20,000-$24,000/year
Out-of-pocket maximums (typical)$7,000-$13,000
Childcare and education
Daycare (monthly, infant)$800-$1,100
Preschool (monthly, 4yo)$600-$900
Public school (free)Tax-funded
Private school (annual avg)$6,000-$15,000
How Waco compares
Waco is among the most affordable cities in Texas with a population over 100,000. Significantly cheaper than Austin (~50%), Dallas (~30%), or Houston (~25%).
Bottom line
Waco delivers exceptional affordability, especially for families. Strong Baylor presence keeps the local economy diverse. Budget around $55-72k for a comfortable family-of-4 lifestyle. The Magnolia tourism boom has driven recent housing appreciation, so move sooner rather than later if you want today's prices.
Related guides
More from Waco News
Local guides, business directory, and how to reach our readers.