North Texas Weekly
Cost of Living in Denton County: 2026 Guide
Jane A.
6/5/26
The real cost of living in Denton County TX 2026 — housing by city, property taxes, utilities, and comparisons to California and Austin.
Denton County consistently ranks as one of the most financially attractive destinations for families and professionals relocating from high-cost states.
The combination of no state income tax, a strong job market, and a cost structure that undercuts coastal metros by a wide margin makes the county a compelling choice. The county's median household income sits between $111,000 and $117,000, one of the highest of any county in Texas.
2026 Snapshot: Key Cost of Living Indicators
Median home value: $437,000
Median household income: $111,000 to $117,000
State income tax: None
Effective property tax rate: 2.0 to 2.5 percent depending on city and ISD
Average 2-bedroom apartment rent: $1,600 to $2,200 per month
Average monthly electric bill (summer): $200 to $350
Average monthly grocery spend (family of 4): $900 to $1,200
Overall cost of living: Approximately 8 to 12 percent above national average, well below Dallas proper and coastal metros
Housing Costs
Housing is the largest expense for most Denton County households, and the market reflects a county that has seen substantial appreciation over the past several years.
New construction is one of the defining features of the Denton County housing market, with builders highly active in Little Elm, The Colony, Corinth, Aubrey, and the northern county communities.
Home Purchase Price Ranges by City (2026)
Flower Mound: $450,000 to $900,000+ for single-family homes; premium pricing for established neighborhoods
Highland Village: $475,000 to $850,000; small-city character with consistently strong resale values
Little Elm: $320,000 to $600,000; strong new construction pipeline with lakeside premiums
Lewisville: $260,000 to $550,000; wide range reflecting older and newer inventory
Denton city: $230,000 to $550,000; entry-level options available near the university
The Colony: $330,000 to $600,000; newer inventory, proximity to Frisco amenities
Aubrey and Justin: $280,000 to $500,000; some of the most affordable new construction in the county
Rental Market (2026 Averages)
1-bedroom apartment: $1,200 to $1,700 per month depending on location and amenities
2-bedroom apartment: $1,600 to $2,200 per month
3-bedroom apartment or townhome: $1,900 to $2,800 per month
Single-family home rental: $2,200 to $3,800 per month depending on size and neighborhood
Property Taxes
Property taxes are the most important cost factor that distinguishes Texas from most other states. Denton County homeowners typically pay an effective tax rate between 2.0 and 2.5 percent of their home's appraised value per year.
On a $437,000 home at a 2.2 percent effective rate, the annual property tax bill is approximately $9,600, or about $800 per month. Texas offers a Homestead Exemption that reduces the taxable value of your primary residence by $100,000 for school district taxes.
Annual property tax on $350,000 home at 2.2%: Approximately $7,700
Annual property tax on $437,000 home at 2.2%: Approximately $9,600
Annual property tax on $600,000 home at 2.2%: Approximately $13,200
Texas Homestead Exemption: $100,000 off school district taxable value
File homestead exemption at: dcad.org
Over-65 freeze: Property tax ceiling on school taxes once you qualify
Utilities
Texas operates a deregulated electricity market, which means residential customers in most Denton County cities can shop competing retail electricity providers. Summer electricity costs are the most significant utility variable — July and August temperatures regularly exceed 100 degrees Fahrenheit, and air conditioning runs nearly continuously during these months.
Monthly Utility Cost Estimates
Electricity (summer peak, average home): $200 to $350
Electricity (winter and shoulder months): $90 to $160
Natural gas (Atmos Energy): $30 to $120 depending on season and usage
Water and wastewater: $60 to $120 per month depending on household size and city rates
Internet (fiber or cable): $50 to $90 per month for high-speed service
Total estimated monthly utilities: $450 to $800 for an average household
Transportation
Transportation costs in Denton County are strongly shaped by car dependency. The county is suburban and spread out, and most residents drive for the majority of their daily needs. Gasoline prices in Texas consistently run below the national average.
Gasoline (average commuter): $150 to $280 per month
Toll road expenses (Dallas commuter): $100 to $250 per month depending on routes
Auto insurance (Texas average): $150 to $250 per month per vehicle
Vehicle payment (median new car): $600 to $750 per month
Maintenance and registration: $80 to $150 per month averaged annually
How Denton County Compares
California state income tax on $150,000: Approximately $12,000 to $15,000 annually. Texas: $0.
Median home price, San Jose CA: Above $1.4 million. Denton County median: $437,000.
Median home price, Chicago IL: Approximately $320,000 to $360,000 with 4 to 5 percent state income tax.
Austin TX median home price: Above $500,000 with similar cost structure but higher housing costs.
Dallas proper median home price: Above $480,000 with comparable tax structure but higher housing costs.
Frequently Asked Questions
How much does it cost to live comfortably in Denton County?
A household of four can live comfortably on $110,000 to $130,000 per year in Denton County, covering housing, utilities, food, transportation, healthcare, and childcare.
Families in higher-cost cities like Flower Mound or with private school tuition will need more. Single adults can live well on $60,000 to $75,000 in most parts of the county.
Are property taxes really that high?
Yes, relative to many states, Texas property taxes are high. An effective rate of 2.0 to 2.5 percent means a $437,000 home generates a tax bill of roughly $8,700 to $10,900 per year.
The homestead exemption reduces this, and the absence of state income tax offsets it for many households. It is a genuine trade-off that every buyer should model before purchasing.
How do I shop for electricity in Denton County?
Visit www.powertochoose.org, enter your zip code, and compare plans from multiple retail electricity providers.
Fixed-rate plans locked in during lower-demand months can provide budget predictability through summer. Look carefully at the Electricity Facts Label for each plan, which discloses the true all-in cost at different usage levels.