Katy is a unique city that gives you both a small town and big city living. Situated on the west side of Houston, Katy is centered among Harris, Fort Bend, and Waller counties. This Houston suburb offers the charm of a small village and the convenience of a larger city, while providing high quality living for its residents.

If you’re weighing the advantages and disadvantages of relocating to Katy, one important thing to consider is the cost of living here. Here are some things to know about living costs in Katy, as well as information about the local economy to inform your decision:

Overall Cost of Living in Katy

The total cost of living in Katy on the index is 104.2. On the cost of living index, the score of 100 is the U.S. national average. Ratings above 100 indicate living costs above the national average, so Katy is a slightly more expensive place to live than average. While Katy residents typically pay less for costs like groceries, healthcare, and utilities, they tend to pay more than the average American for housing and transportation expenses.

Housing Costs

Housing costs in Katy are slightly higher than the national average at 104.8. The median price for a home in this area is $242,300. Although the housing market is more expensive in Katy, the cost of utilities is lower. The index for utilities in Katy is 92.9 compared to the national average. The services used to calculate this number include electricity, natural gas, and other fuels.

Transportation Costs

Transportation costs are far higher in Katy compared to other cities in the U.S. Katy’s transportation index is 122.1. The overall transportation index number includes the average costs of gasoline, car insurance, and maintenance. Transportation costs are likely higher here than in other places, because many residents commute to Houston proper for work.

Median Household Income

While Katy’s cost of living index is higher than the national index, Katy residents also enjoy a higher median household income. The median household income nationwide is just over $57,000, while the median household income in Katy is almost $74,000. So while it is slightly more expensive to live here, you’re likely to have enough income to cover the bills.

Cost of Living in Katy vs. Houston

Houston has an overall lower price of index at 96.5 compared to Katy at 104.2. Some consider Katy a more affluent city than Houston, and it will cost more to live here than in most parts of Katy’s eastern counterpart. The following are some reasons living in Katy is more expensive:

  • Higher housing costs: The median cost of a house in Houston is $185,500. This is almost $57,000 less than the median value of a home in Katy.
  • More expensive food and groceries: You can expect to spend slightly more on food and groceries in Katy compared to Houston.
  • Pricier transportation: While the Houston metro area ranks as the #2 most expensive place for commuters in the country, Houston proper is slightly cheaper in terms of average transportation costs than Katy. This could be attributed to the fact that many Katy residents commute into the city for work.

Although many aspects of living in Houston are cheaper, utilities are about 3.7 percent higher in Houston than in Katy. Healthcare costs are the same in both cities. Do keep in mind that the median income in Houston is around $63,800, which is about $10,000 lower than the median income in Katy.


Property Taxes

Sales Tax

  • The state sales tax rate in Texas is 6.25%
  • With additional Katy and Houston MTA Transit taxes, the total sales tax rate in Katy, TX is 8.25%

Income tax

  • There are no state individual income taxes in Texas


The unemployment rate in Katy is at 4.4%, which is slightly higher than the U.S. average of 3.9%. Over the last year, the job market in Katy has increased by 3.2%. If predicted research is right, the future job growth over the next ten years in Katy will be around 32%. If correct, this number will be lower than the U.S. predicted job growth of 33.5% in ten years.

Top Employers

Many of the leading employers in the area are oil and gas companies, which makes sense given that Houston has long been the energy capital of the world. In fact, oil and gas companies make up three out of the top five employers in Katy:

  1. Katy ISD (Public Schools)
  2. Shell Exploration and Production (Oil & Gas)
  3. Wood PLC & Subsidiaries (Oil & Gas)
  4. BP North America (Oil & Gas)
  5. Katy Mills – Simon Group (Retail)

Job Market

  • About 11% of Katy residents have a job in the professional, scientific, or technical services fields.
  • Educational services jobs support about 9.7% of residents.
  • Healthcare and social assistance is another famous job market in Katy, with 8% of residents filling these jobs.
  • Retail trade (8.6%), manufacturing (8.5%), and construction (9.6%) are other top job markets in Katy, Texas.

While Katy may be slightly more expensive than other parts of the Houston metro area (and the country at large), for many of its residents, the beautiful neighborhoods, wonderful job opportunities, and family-friendly living more than make up for the extra cost. Are you ready to make the move? Contact Cheap Movers Houston today to get free estimates from one of Katy’s best moving companies!

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