Updated November 2026. For people and business owners thinking about moving to Texas, and Texans comparing cities before they buy or sell.
For business owners, quality of life in Texas scores well on cost: there’s no personal income tax, and as of November 2026 a business owes no franchise tax below $2.65 million in revenue. Jobs at Texas employers grew 4.4% from 2022 to 2023, against 3.0% nationally (Census). The trade-offs are property taxes, summer heat and a 19.1% uninsured rate under 65.
Texas is a good state to live and work for many people, and the numbers back it up. It grew 8.8% from April 2020 to July 2025, to 31.7 million people, against 3.1% for the US. The typical Texas home was worth $296,400 in September 2026, per Zillow.
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Key takeaways
- Texas reached 31,709,821 people in July 2025, up 8.8% since April 2020 (Census QuickFacts).
- The Texas Constitution bars a state tax on individuals’ net income (Article 8, Section 24-a).
- There’s no state property tax, but local taxes add up; school districts must give a $140,000 homestead exemption.
- Typical home values range from $237,600 in El Paso to $492,000 in Austin (Zillow, September 2026).
- Texas had 670,878 employer establishments in 2023 and 3,318,535 nonemployer businesses in 2024 (Census QuickFacts).
Buying or selling as part of a move? See how a Texas flat fee MLS listing works: Basic is $99, with $0 due to Beycome at closing.
We’ll look at what draws people, what it costs, how the big cities compare, and the trade-offs people don’t always mention. Then a quick Texas vs. Illinois comparison, since many movers weigh the two.
What is quality of life in Texas like for business owners?
Good on costs, mixed on benefits. A Texas owner keeps more of what the business earns, because the state doesn’t tax personal income. The business itself pays the franchise tax only above a revenue line. What you give back shows up in property tax and in health coverage you often have to buy yourself.
| Measure (Census QuickFacts) | Texas | United States |
|---|---|---|
| Employer establishments, 2023 | 670,878 | 8,361,342 |
| Employment change, 2022 to 2023 | +4.4% | +3.0% |
| Nonemployer businesses, 2024 | 3,318,535 | 31,985,874 |
| Median household income, 2020–2024 | $78,476 | $80,734 |
| Mean commute, 2020–2024 | 26.7 minutes | 26.4 minutes |
| Uninsured, under 65 | 19.1% | 9.6% |
Those 3.3 million nonemployer businesses are mostly sole owners: freelancers, contractors, consultants. The Governor’s Office of Small Business Assistance puts the total at more than 3.5 million small businesses. Jobs at Texas employers grew faster than the national rate in 2023, a decent sign for anyone hiring or selling to local companies.
How the franchise tax works
Texas charges most LLCs and corporations a franchise tax instead of an income tax. For reports due in 2026 and 2027, the Comptroller lists a no tax due threshold of $2,650,000 in total revenue. Above it, the rate is 0.75%, or 0.375% for retail and wholesale. Businesses under $20 million can use the EZ computation at 0.331%. Below the threshold you still file, but owe nothing.
Say you run a consulting LLC with $900,000 in revenue. You’d owe no franchise tax and no state income tax on what you take home. In most other states, that take-home pay would also face a state income tax.
The trade-offs
The uninsured rate is the one people miss. At 19.1% of Texans under 65, it’s about double the US rate, so price a marketplace or small-group plan before you move. Median household income runs a little below the US figure, though lower home prices in most metros offset some of it. And property taxes do the work an income tax does elsewhere; if your bill feels high, our guide to appealing a property tax assessment explains the Texas protest window.
Many owners also work from home, so the house matters twice: it’s where you live and where the business runs. That’s one reason the city you pick, and its tax rate, deserve the same care as the business plan.
Why is Texas a good state to live and work?
People keep coming
Growth is the clearest signal. Census QuickFacts puts Texas at 31,709,821 residents on July 1, 2025, up from an estimates base of 29,149,498 in April 2020. That’s 8.8% growth, almost three times the US rate. Texas also issued 210,217 building permits in 2025, which keeps new housing coming.
Jobs in many fields
Texas isn’t a one-industry state. Energy, health care, tech, logistics and government all hire. Big metros like Dallas-Fort Worth, Houston, Austin and San Antonio each have their own mix. The labor force share is high too: 64.7% of people 16 and older were in the civilian labor force in 2020–2024, against 63.0% nationally.
A younger state
Families are a big part of the story. In Census data, 24.0% of Texans are under 18, against 21.1% nationally. That’s one reason school districts and suburbs come up so often in moves. Our top 10 places to raise a family includes Texas picks.
Weather and the outdoors
Sunshine is part of the draw for many, and WebMD has a slideshow on how sunshine affects health. Texas runs from the Gulf Coast to the Hill Country to the deserts and mountains of Big Bend. The trade-off is heat in summer, hurricanes on the coast and occasional hard freezes inland. Factor storm and flood risk into any home search.
What are the best places to live in Texas?
It depends on what you want. Here’s what a typical home cost in September 2026 in the largest metros, per the Zillow Home Value Index.
| City | Typical home value | 1-year change | Known for |
|---|---|---|---|
| Austin | $492,000 | -3.2% | Tech jobs, music, the Hill Country nearby |
| Dallas | $303,400 | -1.4% | Corporate offices, a huge metro job market |
| Fort Worth | $292,900 | -1.6% | Lower prices than Dallas, same metro |
| Houston | $259,500 | -2.1% | Energy, the medical center, the port |
| San Antonio | $244,600 | -2.2% | Military bases, lower costs, history |
| El Paso | $237,600 | +2.6% | Border city, mountains, the lowest prices here |
Prices dipped in most of these cities over the year, which gives buyers room to negotiate. For business owners, Austin and Dallas put you near the most corporate clients; Houston, San Antonio and El Paso stretch a budget further. Austin is still the priciest. If you’re weighing a move there, this list of 10 reasons to move to Austin is a fun read, and our Beycome.com announces its expansion in Texas post covers how we got started in the state.
How much are taxes in Texas?
The headline is true: Texas has no state income tax. Article 8, Section 24-a of the Texas Constitution says the legislature may not tax the net incomes of individuals. The state funds itself in other ways.
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Buy a home →| Tax | Texas rule | Source |
|---|---|---|
| State income tax | None on individuals’ net income | Texas Constitution, Art. 8, Sec. 24-a |
| Sales tax | 6.25% state, plus up to 2% local | Texas Comptroller |
| Property tax | No state property tax; set by local taxing units | Texas Comptroller |
| Homestead exemption | $140,000 off school district taxes, plus local options | Texas Comptroller |
Property tax is where Texas collects. The Texas Comptroller says there’s no state property tax and that local units like school districts, cities and counties set the rates. The homestead exemption page explains the $140,000 school district exemption: a home appraised at $300,000 is taxed by the school district as if it were worth $160,000. File for it once you move in.
This is why Texas housing costs aren’t as low as values suggest. Census data shows a median $2,106 a month in owner costs with a mortgage in Texas (2020–2024), above the US median of $1,963, even though the median Texas home value, $283,800, is below the US $332,700. Budget for taxes and insurance, not just the price.
Texas vs. Illinois: how do they compare?
Many people moving to Texas come from the Midwest, so here’s a side-by-side with Illinois from Census QuickFacts and Zillow.
| Measure | Texas | Illinois |
|---|---|---|
| Population, July 2025 | 31,709,821 | 12,719,141 |
| Change since April 2020 | +8.8% | -0.8% |
| Typical home value (Zillow, Sept 2026) | $296,400 | $295,900 |
| Home value change, 1 year | -1.4% | +5.3% |
| Owner costs with a mortgage (2020–2024) | $2,106 a month | $1,987 a month |
| Building permits, 2025 | 210,217 | 18,551 |
| State individual income tax | None | Yes |
Typical home values are almost the same. Texas is growing and building far more. Illinois values rose faster over the past year. Each state has its own trade-off between income tax and property tax, so run your own numbers on a real home.
What should you know before buying or selling a home in Texas?
Texas is a big state with many local markets, and the MLS changes by region: Houston uses HAR, Dallas-Fort Worth uses NTREIS, Austin uses the Austin MLS, and San Antonio uses LERA MLS. A Beycome Texas flat fee MLS listing puts your home on the major home search sites and the MLS that covers your area, with Basic at $99 and $0 due to Beycome at closing. Every plan includes e-signature, unlimited updates, ShowingTime where the MLS offers it, and the Artur AI assistant.
Selling in San Antonio? Start with our San Antonio FSBO websites comparison. Elsewhere, compare your options in our Texas flat fee MLS company rankings and the Texas FSBO websites ranking, or read how to sell your Texas home without a realtor. To list your home for sale by owner in Texas on the MLS, start there.
Closing in Texas? Beycome Title has a Houston office and a $299 settlement fee per side. Buying? The Beycome buyer program in Texas has no upfront fee and is open to every buyer on homes listed by other agents. Beycome keeps 1% of the price (minimum $1,499) and credits the rest of the buyer-agent commission at closing, with lender approval. The credit can’t apply where no buyer-agent commission is offered, like most FSBO homes, or on homes listed by Beycome sellers.
Working in Texas real estate
Thinking about a real estate career in Texas instead? Texas agents are licensed by the state, and many start with a brokerage that trains new agents. Once you’re licensed, read how to improve your real estate business. Moving after a breakup? Read what to know about real estate laws when separating from your partner first.
Frequently asked questions
What is the quality of life in Texas for business owners?
Strong on cost: no personal income tax, and no franchise tax due below $2.65 million in revenue for 2026 reports. Health coverage is the weak spot, with 19.1% of Texans under 65 uninsured.
Does Texas have a franchise tax?
Yes, on most LLCs and corporations. The rate is 0.75%, or 0.375% for retail and wholesale, and nothing is due below $2,650,000 in revenue (Texas Comptroller, 2026 and 2027 reports).
What are the benefits of living in Texas?
No state income tax, a growing job market, many large cities to choose from, and typical home values near $296,400 (Zillow, September 2026). Property taxes and summer heat are the main trade-offs.
What are the best places to live in Texas?
It depends on your job and budget. Austin is the priciest at $492,000 typical value; San Antonio and El Paso are below $245,000, per Zillow in September 2026.
Does Texas have a state income tax?
No. Article 8, Section 24-a of the Texas Constitution bars a state tax on the net incomes of individuals.
Are property taxes high in Texas?
They’re set locally and can be high. There’s no state property tax, and school districts must give a $140,000 homestead exemption on your main home.
Is Texas or Illinois cheaper to live in?
Typical home values are about the same, near $296,000 in both (Zillow, September 2026). Texas has no state income tax; Illinois had lower median owner costs with a mortgage in Census data.
How fast is Texas growing?
8.8% from April 2020 to July 2025, to 31.7 million people, per Census QuickFacts. The US grew 3.1% over the same period.
Population, housing, income and business figures from Census QuickFacts (V2025 estimates, the 2020–2024 American Community Survey and Census business data), read October 26 and November 2, 2026. Franchise tax figures from the Texas Comptroller, read November 2, 2026. Home values: Zillow Home Value Index, September 2026. Tax rules per the Texas Constitution and Texas Comptroller, read October 26, 2026.
Beycome prices as of November 2026: Basic is $99 in Texas; see the Concierge page for its current price. “$0 at closing” means no Beycome fee at closing; taxes, title and any agreed buyer-agent compensation still apply. Beycome lists in 17 states and DC. Buyer credit: minimum $1,499, lender approval, not on FSBO homes or homes listed by Beycome sellers. Beycome Title: Florida, Texas, Michigan, Ohio, Illinois and Indiana. General information, not tax advice.
Sources
- Census QuickFacts, Texas and United States, read October 26 and November 2, 2026.
- Census QuickFacts, Illinois and Texas, read October 26, 2026.
- Texas Constitution, Article 8, read October 26, 2026.
- Texas Comptroller, property tax and exemptions, read October 26, 2026.
- Texas Comptroller, sales and use tax, read October 26, 2026.
- Texas Comptroller, franchise tax rates and thresholds, read November 2, 2026.
- Office of the Texas Governor, Small Business Assistance, read November 2, 2026.
- Zillow Research, ZHVI, September 2026 snapshot.
- Beycome, listing package features, November 2026.
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