Almost all Texans enjoy a lower living cost than their American compatriots, with some areas nearly a quarter cheaper than the national average. The fact that there is no income tax helps Texans achieve this low cost of living. The state relies on high sales and use taxes for its tax base. Sales taxes start at 6.25%, but jurisdictions (Texas cities, counties, etc.) can add up to 2% more for a total 8.25% sales tax. Healthcare is one thing that does cost a lot in Texas. In 2021, Texas residents spent, on average, more than $10,000 per person on health care. It is one of the highest levels in the country, with Texans paying more than Californians and New Yorkers.