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.

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