Texas, known as the Lone Star State, is not just a hub of culture and history but also a powerhouse of economic growth and career opportunity. With major industries ranging from technology and energy to healthcare and logistics, professionals from all walks of life are drawn to its thriving job market. But what can you actually expect to earn? While the average salary in Texas is approximately $61,000 to $68,000 per year, this figure is just the beginning of the story.
Your personal earning potential is shaped by a unique combination of your profession, experience, location, and education. This guide will break down the average salary in Texas, explore the key factors that influence your pay, and provide a look at the state's promising job outlook.
Understanding the "Average Salary" in Texas
Before diving into the numbers, it's important to understand what "average salary" means. You will often see two different figures:
- Mean Salary: This is the traditional average, calculated by adding all salaries in the state and dividing by the number of workers. It can be skewed upward by a smaller number of very high earners.
- Median Salary: This is the midpoint of all salaries. Half of the workers in Texas earn more than the median, and half earn less. Many economists consider this a more accurate representation of the "typical" worker's earnings.
For example, the U.S. Bureau of Labor Statistics (BLS) reports that for May 2023 (the most recent comprehensive data), the mean annual wage in Texas was $61,540, while the median annual wage was $48,060. The difference highlights the impact of high-paying jobs on the overall average.
The Average Salary in Texas: A Closer Look
Different sources provide slightly different figures based on their data collection methods. Here’s a snapshot from several authoritative sources to give you a well-rounded view:
- U.S. Bureau of Labor Statistics (BLS): As mentioned, the BLS places the mean annual wage at $61,540 and the mean hourly wage at $29.59 as of May 2023.
- Salary.com: As of early 2024, Salary.com reports the average base salary in Texas to be around $68,911. They also note a typical salary range often falls between $54,124 and $85,862.
- Payscale: This platform reports an average base salary of $68,000 per year based on its user-submitted data.
- Glassdoor: Citing millions of user-submitted salary reports, Glassdoor lists the average salary in Texas at $61,194 per year.
Key Takeaway: The data consistently places the average salary for a full-time worker in Texas in the low-to-mid $60,000s, with a median salary closer to the high $40,000s. However, this is just a baseline. The following factors will determine where you fall on this spectrum.
Key Factors That Influence Salary
Your individual salary is rarely the state average. It’s a unique number determined by several critical factors.
Geographic Location
Where you work in Texas matters—a lot. Major metropolitan areas with a higher cost of living and a greater concentration of high-paying industries typically offer higher salaries.
- Dallas-Fort Worth-Arlington: As a major corporate and financial hub, the DFW metroplex offers competitive salaries. The BLS reports a mean annual wage of $64,960 for this area.
- Houston-The Woodlands-Sugar Land: The heart of the nation's energy sector, the Houston area boasts strong earning potential, with a BLS-reported mean annual wage of $65,110.
- Austin-Round Rock: Driven by a booming tech scene ("Silicon Hills"), the Austin metro area often has the highest average salaries in the state. The BLS data shows a mean annual wage of $68,170.
- San Antonio-New Braunfels: While still a major economic center, especially for military, healthcare, and tourism, salaries here are often slightly more moderate, with a mean annual wage of $56,410.
- Nonmetropolitan Areas: Salaries in rural parts of Texas are typically lower, reflecting a lower cost of living and different industry compositions.
Years of Experience
Experience is one of the most significant predictors of income. Employers pay a premium for proven skills and a track record of success.
- Entry-Level (0-2 years): Professionals starting their careers will typically earn on the lower end of the salary scale for their role, often 20-30% below the overall average.
- Mid-Career (3-8 years): With solid experience, professionals can expect to earn at or above the average for their role.
- Senior/Experienced (8+ years): Senior-level professionals, managers, and executives with specialized expertise are in high demand and can command salaries significantly above the state average.
Area of Specialization (Occupation)
Your chosen profession is arguably the most important factor. The demand for specific skills dramatically impacts earning potential. Here are examples of average salaries in Texas for various in-demand roles, according to data from Salary.com and the BLS:
- Software Developer: $95,000 - $120,000+
- Registered Nurse: $78,000 - $90,000
- Petroleum Engineer: $130,000 - $160,000+
- Marketing Manager: $90,000 - $115,000
- Heavy and Tractor-Trailer Truck Drivers: $50,000 - $65,000
- General and Operations Managers: $125,000 - $150,000
In contrast, occupations in sectors like Food Preparation and Serving or Personal Care have significantly lower average wages, pulling the overall state median down.
Level of Education
Generally, higher levels of education correlate with higher earning potential. A degree or certification demonstrates a verified level of knowledge and dedication.
- High School Diploma or Equivalent: Provides a baseline for entry into many professions.
- Bachelor’s Degree: Often a prerequisite for professional and corporate roles, significantly increasing earning potential over a lifetime.
- Master’s Degree/PhD/Professional Degree: Fields like law, medicine, and advanced technology require postgraduate degrees, which command some of the highest salaries in the state.
Company Type & Industry
The type of company you work for and the industry it operates in can also influence your pay.
- Industry: As seen above, industries like Technology, Energy (Oil & Gas), Finance, and specialized Healthcare pay significantly more than Retail or Hospitality.
- Company Size: Large, multinational corporations often have more structured and higher-paying compensation packages than small businesses or startups, though startups may offer equity as part of their compensation.
- Public vs. Private Sector: Private sector jobs typically offer higher base salaries, while public sector (government) jobs may offer more robust benefits and job security.
Job Outlook
The future for professionals in Texas is exceptionally bright. The state continues to experience rapid population and job growth, outpacing much of the nation. According to the Texas Workforce Commission and the BLS, Texas is projected to add nearly 2 million jobs by 2030.
Key growth sectors include:
- Health Care and Social Assistance
- Professional and Business Services
- Trade, Transportation, and Utilities
- Technology and Information
This sustained growth means that demand for skilled workers will remain high, creating a competitive environment that supports strong wages and ample career opportunities.
Conclusion
So, what is the average salary in Texas? While the statistics point to a figure around $61,000 per year, the more accurate answer is: it depends.
Your salary is a reflection of your unique value in the job market. By understanding the key factors—your location, experience, profession, and education—you can position yourself to maximize your earning potential. For those considering a career in Texas, the combination of a robust job market, diverse industries, and a dynamic economy makes it one of the most promising places in the country to build a successful and rewarding professional life.