Is Houston, TX or Washington, DC cheaper on a $120,000 salary?

Houston, TX leaves you more: $23,936/yr. On $120,000, Houston, TX leaves $75,005/yr in pocket (state tax $0, housing $15,415) vs Washington, DC's $51,069 (state tax $10,200, housing $29,151).

The gap is driven mostly by state income tax (Texas: 0% vs District of Columbia: 8.50%) and housing.

WhereCanIAfford › Take-home › Houston, TX vs Washington, DC

Houston, TX vs Washington, DC: cost of living on $120,000

Houston, TX +$23,936/yr On $120,000, Houston, TX leaves $75,005/yr in pocket vs Washington, DC's $51,069 — after state income tax and housing.

Where the money goes

On $120,000	Houston, TX	Washington, DC
Federal + FICA (est.)	$29,580	$29,580
State income tax	$0 (0%)	$10,200 (8.50%)
After-tax income	$90,420	$80,220
− Housing/yr (Zillow)	$15,415	$29,151
Real money in pocket	$75,005	$51,069

Verified 2026-06-23 · State tax: Tax Foundation, “State Individual Income Tax Rates and Brackets, 2025” + state revenue departments. Modeled as an effective planning rate for a typical $80k–$160k filer — not a full bracket engine. · Housing from Zillow ZHVI 2026-05.

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FAQ

Is Houston, TX or Washington, DC cheaper?: On $120,000, Houston, TX — by $23,936/yr in real take-home.
What's the biggest driver?: State income tax (Texas 0% vs District of Columbia 8.50%) and housing cost.

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