A Texas household must earn about $250,000 annually to rank among the top 10% of earners in the state, according to a recent analysis compiled by Visual Capitalist using U.S. Census Bureau data.
That places Texas in the middle tier nationally. Households in the District of Columbia must earn $635,000 to reach the top 10%, while in West Virginia the threshold is $198,000.
The Top 1% In Texas
To rank among the top 1% of earners in Texas, a household must bring in $743,955 per year, according to a separate 2025 SmartAsset analysis based on Internal Revenue Service data adjusted for inflation.
Approximately 128,130 Texans meet that threshold. To fall within the top 5%, a household must earn $284,661 annually.
Nationally, the average income required to enter the top 1% is $731,492.
What It Takes To Cover Basic Costs
Income rankings do not necessarily reflect financial comfort.
MIT’s Living Wage Calculator estimates that a single adult in Texas needs about $45,386 per year to cover basic necessities, including housing, food, transportation, medical expenses, and taxes. Two working adults with two children require roughly $102,460 annually to meet those baseline costs.
Those figures represent minimum living standards, not discretionary spending, retirement savings, or homeownership in higher-cost metro areas.
Cost Of Living Varies Across The State
While Texas’ overall cost of living remains below the national average, expenses vary significantly by region. Housing costs in major metro areas such as Austin and parts of the Dallas-Fort Worth region typically require higher incomes than smaller cities in the Panhandle or South Texas.
The Bureau of Labor Statistics reported in its January 2026 Consumer Price Index release that consumer prices rose 2.4% over the previous 12 months.
In practical terms, earning $250,000 annually places a Texas household among the state’s highest earners. Whether that income provides financial security depends on family size, debt obligations, housing costs, and long-term savings goals.