Living in Katy, TX in 2025 costs around $4,500 per month in pre-tax income for a comfortable lifestyle for a couple. For a family of four, budget closer to $6,500 monthly before taxes. Here’s a detailed look at the expenses that make up Katy’s cost of living.
Housing Costs in Katy
Housing is the biggest monthly expense in Katy. Expect to pay around $1,800 per month to rent a typical 2-bedroom apartment. Renting a 3-bedroom house runs closer to $2,300 monthly.
If you’re looking to buy, the median home price in Katy is $375,000 as of 2025. With a 10% down payment, that translates to a monthly mortgage of roughly:
- $2,100 for a 3BR, 2BA house
- $2,600 for a 4BR, 2.5BA house
Many Katy neighborhoods have Homeowners Associations (HOAs). Typical HOA dues range from $30-80 per month. While not mandatory, living in a non-HOA neighborhood is uncommon in master-planned communities like Cinco Ranch and Seven Meadows.
Utility Costs
Utility costs in Katy are on par with the Houston metro area. Budget around $200 monthly for electricity for a 2BR apartment, plus $30-50 for water and $30 for trash collection.
For a 3BR house, utility costs increase to roughly:
| Electricity | $250-300/mo |
| Water | $70/mo |
| Trash | $30/mo |
Keep in mind that electricity costs spike in the summer due to near-constant AC use. Many Katy residents report electric bills doubling from June through September.
Groceries and Food
Groceries for a single person in Katy cost around $300 per month, assuming some meals out. For a couple, budget $600-700 monthly. A family of four should expect to spend at least $900 on groceries alone.
A typical grocery basket containing staples like bread, milk, eggs, produce, and chicken costs about $30-35 in Katy-area supermarkets as of 2025. This is slightly lower than prices in central Houston.
Dining out will add to your food budget. A basic meal for two at a casual restaurant averages $40-50 before tip. Fast food combos are around $8-10 per person.
Taxes and Fees
Texas has no state income tax, but sales tax and property tax are key parts of Katy’s cost of living:
- Sales tax in Katy: 8.25% on most purchases
- Property tax rate in Katy: 2.3-3.1% of home value annually
For a $375K house, expect to pay $8,600-11,600 per year in property taxes. Assessed values have increased 5-10% annually in recent years.
Vehicle registration fees in Katy are $75 per year for most cars. Inspections are required annually and cost $25-40.
Monthly Cost Summary
| Expense | Single | Couple | Family of 4 |
|---|---|---|---|
| Housing (rent) | $1300 | $1800 | $2300 |
| Utilities | $200 | $270 | $350 |
| Groceries | $300 | $650 | $900 |
| Transportation | $300 | $500 | $800 |
| Healthcare | $300 | $600 | $1200 |
| Other necessities | $300 | $500 | $800 |
| Monthly Total (Pre-Tax) | $2700 | $4320 | $6350 |
Note these figures are approximate and your budget may vary based on lifestyle, family size, and housing choices. All amounts are pre-tax monthly income.
Lifestyle Factors
Living in Katy offers tradeoffs between affordability, commute times, and amenities. Homes in older neighborhoods east of Katy Mills mall are generally 15-20% cheaper than those in newer master-planned communities to the west and south. However, commute times to the Energy Corridor or downtown Houston may be 15 minutes longer each way.
Most Katy neighborhoods are very family-friendly, with ample parks, playgrounds, pools and sports facilities. Katy ISD is a top-rated school district. For singles and couples without kids, Katy may feel suburban compared to Inner Loop Houston. But the city offers a good balance of cost, convenience and community if you value space and don’t mind driving to work.
Frequently Asked Questions
What salary do you need to live comfortably in Katy?
For a couple, aim for a combined gross income of at least $4,500 per month ($54K annually) to live comfortably while renting in Katy. To afford a house, shoot for $6,500 in monthly pre-tax income ($78K/year).
Is Katy cheaper than living in Houston?
Katy is about 10-15% less expensive than neighborhoods inside Houston’s 610 Loop, mainly due to lower housing costs. However, Katy is on par or slightly pricier than suburbs like Spring and Humble.
How much is the average electric bill in Katy?
Expect to pay $200-250 monthly for electricity in a 2BR apartment, or $300+ for a 3BR house. Bills often double in the summer months due to heavy AC usage.
What is the property tax rate in Katy?
The total property tax rate in Katy ranges from 2.3% to 3.1% of your home’s assessed value, as of 2025. For a $375K house, that equals $8,600-11,600 owed annually.
Is Katy a good place to raise a family?
Katy is very family-friendly, with great schools, ample parks and amenities, and a small-town community feel. It’s one of the most popular Houston suburbs for families with kids.