Cost of Living in Arlington
Arlington runs modestly above both the national and Texas averages on overall cost of living: BestPlaces.net's index puts the city at 101.5, meaning total costs run about 1.5% above the U.S. average and 7.7% above the Texas average. That's a genuinely different picture than Arlington's reputation as the affordability leader among nearby DFW suburbs might suggest on housing alone -- the composite index includes categories beyond housing where Arlington doesn't necessarily undercut the national baseline.
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Learn moreThe Overall Index
BestPlaces.net's cost-of-living index for Arlington, TX (reviewed August 2026) scores the city at 101.5 against a national baseline of 100 -- about 1.5% above the U.S. average, and 7.7% above the Texas statewide average specifically. This is a genuinely different framing than Arlington's within-DFW housing affordability (see the housing-market topic page): Arlington's home prices run well below nearby Plano or Frisco, but its overall cost-of-living index, which folds in categories like transportation, healthcare, and childcare, is not itself a discount market relative to the nation.
Housing Is Arlington's Real Discount, Even If the Composite Index Isn't
Arlington's median sale price of roughly $320,000 (Redfin, February 2026) runs about 25% below the national median per that same source, and it's the clear affordability leader among the DFW satellite cities this site tracks -- well under McKinney, Plano, or Frisco (see the housing-market topic page). The gap between that real housing discount and the composite cost-of-living index running slightly above the national average suggests other cost categories (the index doesn't break out which ones drove the 101.5 score in the sources checked this pass) are pulling the overall number up even as housing pulls it down.
No State Income Tax, Offset by Property Tax and Insurance
Texas has no state personal income tax, the single largest structural cost-of-living advantage Arlington carries relative to most other major metros nationally. That advantage is substantially offset for homeowners specifically by Arlington's property tax rate (genuinely disputed across sources, commonly cited in a 1.49%-1.77% range -- see the taxes topic page) and by homeowners insurance costs that run on the higher end nationally due to hail exposure (see the insurance-hazard-costs topic page). A renter feels the income-tax advantage more directly than a homeowner does once those owner-side costs are netted in.
Utilities and Summer Cooling Costs
Arlington shares the wider DFW region's hot summer climate (see the climate-weather topic page), and air conditioning is a real, non-optional utility cost for a large share of the year as a direct result. A specific, independently sourced Arlington-only utilities cost index was not confirmed to a single precise figure this research pass; budget for above-typical summer electric bills as a plain consequence of the climate.
Key takeaways
- Arlington's overall cost of living runs modestly above both national and Texas averages -- BestPlaces.net cites an index of 101.5 (1.5% above the U.S. average, 7.7% above the Texas average).
- Housing is Arlington's genuine cost advantage (median sale price ~$320,000, about 25% below the national median), even though the broader composite cost-of-living index runs slightly above the national baseline -- these two facts coexist rather than contradict.
- No Texas state income tax is a real structural advantage, but it is substantially offset for homeowners by property tax and hail-driven insurance costs -- renters feel the tax advantage more directly.
- Summer cooling costs are a real, non-optional budget line given the DFW region's hot-summer climate; no Arlington-specific utilities index was independently confirmed this pass.
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