Is $200K a Good Salary in Arlington? (2026)
Budget breakdown for $200,000 in Arlington: rent, groceries, transport, and what is left over. Purchasing power = $208,333 nationally.
Is $200K Enough in Arlington?
At $200,000 in Arlington, you earn above the local median household income of $68,000. Your take-home lands in the 91th percentile of Texas earners — 9% earn more, 91% earn less.
$200,000 places you in the top 5% of Texas earners — the 95th percentile. Federal marginal rate is 32% on the portion above $191,950, and the Additional Medicare tax (0.9%) kicks in above $200,000 for single filers. In Arlington, you're roughly 2.9× the local median household income. A California resident at this gross pays ~$14,500 in state income tax; you pay $0. Combined state-tax saving over a 30-year career at this income approximates $435,000 — a meaningful wealth transfer that Texas residents often underweight in retirement planning models. At this level, property tax + insurance optimization, Tarrant County homestead filing, and bonus withholding tuning become the primary remaining levers.
$200K in Arlington — At a Glance
What $200,000 Breaks Down To
− Federal income tax: $34,658
− FICA (SS + Medicare): $13,353
− Texas state tax: $0
− 401(k) @ 6%: $12,000
− Health premium: $3,000
= Net take-home: $136,988
Assumes single filer, 2026 standard deduction ($14,600), 6% 401(k), $250/month health premium. Your actual tax depends on filing status, dependents, and additional deductions. Texas charges no state income tax, so the state tax line is always $0.
How $200K in Arlington Compares Nationally
Arlington: Sports + Logistics + GM Plant Anchor
Arlington sits between Dallas and Fort Worth with a distinctly blue-collar-plus-services economy: General Motors' Arlington Assembly Plant, the Cowboys stadium (AT&T Stadium) and Rangers ballpark (Globe Life Field) driving hospitality, and a growing logistics sector (Amazon, UPS, DHL). Like Fort Worth, it uses Tarrant County's 2.05% effective property tax rate and the same $5K county + $0 city homestead. A median home at $310,000 generates $3,485 in annual property tax after stacking — meaningfully lower than neighboring Dallas. Median household income of $68,000 sits just below the state median of $79,721, making Arlington a common choice for dual-income Dallas/Fort Worth commuter households.
Arlington Property Tax on Median Home — What Your $200K Actually Supports
Tarrant County's effective property tax rate is 2.05%. On a median Arlington home valued at $310,000:
− State school homestead: −$140,000
− Tarrant County homestead: −$5,000
− Arlington city homestead: −$0
= Taxable value: $165,000
× 2.05% rate = $3,382/year
Without the homestead stack, the bill would be $6,355/year. Filing Form 50-114 with the Tarrant County Appraisal District saves you $2,973/year. Deadline: April 30 of the first year you own the home.
If You Get a Bonus on Top of $200K
Texas doesn't tax bonuses at a separate state rate (there's no state tax at all), but the IRS withholds bonuses at a flat 22% federal rate up to $1M (37% above $1M). On a $5,000 bonus at your income, expect to receive about $3,518 after federal withholding + FICA. If your marginal federal rate is lower than 22% (gross below ~$100K), you'll get a refund of the difference at tax time.
Compare $200K Across Other Texas Metros
Same salary, different Texas city. Take-home is identical (no state tax difference), but cost of living and property tax vary significantly:
Your Next Move
Things to Know
Arlington-specific concepts for understanding your $200,000 paycheck
Arlington Purchasing PowerWhat does $200,000 actually buy you in Arlington?
Arlington's index-adjusted cost of living runs roughly 4% below the national average, which puts $200,000 of nominal salary at about $208,333 in national-average purchasing power. Within Texas, El Paso is dramatically cheaper than Austin (where the median home price approaches $550K) or Dallas-Fort Worth, and meaningfully cheaper than Houston or San Antonio. Texas's lack of state income tax on wages means El Paso's headline take-home is highly favorable on any salary; the structural offset is property tax (El Paso County effective rates ~2.0-2.4%), which Texas uses to compensate for its lack of income tax. For workers comparing offers from high-state-tax peer metros (CA, NY, NJ, MA, OR), El Paso can deliver dramatically more take-home — the trade-off is the higher property tax burden for homeowners.
Arlington Housing MathHow does the 28% rule play out in the Pantego/Dalworthington Gardens area (the established premium enclave), older central Arlington neighborhoods, or Mansfield (~10 miles south — popular for families and top-rated schools)?
The 28% rule caps total monthly housing at $4,667 on a $200,000 salary. In Arlington that ceiling is comfortably above market rent in nearly every neighborhood — median 1BR sits around $1,300/month city-wide, leaving substantial headroom for a larger unit, a better neighborhood, or aggressive savings. Premium areas like the Pantego/Dalworthington Gardens area (the established premium enclave), Viridian (the master-planned lakeside development in north Arlington), the area around UT Arlington and downtown, plus newer luxury developments along the U.S. 287 corridor and the SH-360 corridor toward DFW Airport command the high end of city rents, and value neighborhoods like older central Arlington neighborhoods, parts of east Arlington and the Six Flags / Cooper Street corridor, plus value pockets in west Arlington and the southwest residential areas offer the most affordable options. For buyers, the metro median home price near $360,000 (~$360K) is meaningfully more accessible than Dallas (~$400K) or Austin (~$475K), making Arlington an attractive landing spot for DFW Metroplex workers seeking lower housing costs without sacrificing career depth. Texas property tax in Tarrant County runs roughly 2.0-2.4% of assessed value annually (above the national average — Texas's structural cost variable, since the state has no income tax and partly compensates through property tax). Many buyers carefully weigh school districts (Mansfield ISD, Hurst-Euless-Bedford ISD, and Carroll ISD in Southlake are perennial top-rated; Arlington ISD varies by school) and proximity to GM Arlington, the Entertainment District, UT Arlington, or broader DFW employment in Fort Worth (~15 miles west), Dallas (~20 miles east), or DFW Airport (~12 miles north).
Texas: No State Income Tax (High Property Tax Offset)How Texas's lack of state income tax + ~2.0-2.4% El Paso County property tax shape your Arlington take-home
Texas does not levy a state income tax on wages — making your El Paso paycheck unusually clean of state-and-local income tax. The state has no individual income tax of any kind (Texas Proposition 4, ratified by voters in 2019, strengthened the constitutional ban on state income tax by requiring a two-thirds legislative supermajority and statewide voter approval to introduce one). On $200,000, the calculator's 0% state rate means $0/year in state income tax — among the most favorable state-tax environments in the country. El Paso does not levy a city or county-level income tax either, so your El Paso paycheck has no state-or-local income tax line at all (only federal income tax and FICA). Sales tax in El Paso is 8.25% combined (6.25% state plus 1% El Paso city plus 1% special purpose district), among the higher combined rates in the country. The structural cost driver in Texas is property tax — El Paso County effective rates run roughly 2.0-2.4% of assessed value annually, well above the national average. Texas compensates for its lack of income tax with relatively high sales and property taxes, but the net effect for most workers (especially renters and lower-income earners) is favorable take-home.
$200,000 Lifestyle in ArlingtonCan you hit all five financial benchmarks here?
The five core benchmarks: 15%+ retirement savings, 3-6 month emergency fund, housing under 28% of gross, total debt under 36% DTI, and discretionary headroom for quality of life. At $200,000 in Arlington, all five benchmarks are easily met and the financial focus shifts to optimization: maximize all tax-advantaged accounts, consider mega-backdoor Roth and after-tax 401(k) contributions if your plan allows, evaluate real estate as a wealth-building lever, and consider tax-loss harvesting in taxable brokerage accounts. The combination of high income with Arlington's lower cost of living can drive savings rates of 30-50% — exceptional for accelerating financial independence.
$200,000 in Arlington has the purchasing power of approximately $208,333 nationally. That puts you well above the local median household income of $60,000, putting you in the upper tier of local earners. At this income level you are firmly in the upper tier of local earners. Tax-advantaged savings (401(k), HSA, backdoor Roth) become the highest-leverage financial moves, and homeownership is well within reach in any Arlington neighborhood.
Monthly Budget on $200,000 in Arlington
Sample budget for a single Arlington earner at $200,000 gross. At this income level the rent line reflects a premium 1BR or modest 2BR — actual housing choice often runs significantly lower, freeing more budget for savings.
| Budget Item | Monthly | % of Take-Home |
|---|---|---|
| Rent (premium 2BR / condo) | $2,080 | 17% |
| Groceries | $455 | 4% |
| Transportation (car: payment, insurance, fuel) | $500 | 4% |
| Utilities & Phone (utility+internet+mobile) | $280 | 2% |
| Total Essentials | $3,315 | 27% |
| Remaining for Savings, Investing, Lifestyle | $8,949 | 73% |
Based on estimated take-home of $12,264/month after federal, FICA, and no state state tax. Get your exact number: Take-Home Pay Calculator.
Housing on $200,000 in Arlington
The 30% rule gives you a max rent of $5,000/month. Median 1BR in Arlington is approximately $1,300/month — far below your housing-rule ceiling, leaving substantial headroom. Many earners at this tier choose premium neighborhoods like the Pantego/Dalworthington Gardens area (the established premium enclave) or a 2BR for additional space without straining the budget.
Thinking about buying? Arlington offers some of the most accessible homeownership economics in any major U.S. metro — median home sale prices run roughly $360,000, easily affordable on this salary with multiple down-payment strategies and the option to buy in any Arlington neighborhood including the inner suburbs (Mansfield (~10 miles south — popular for families and top-rated schools), Grand Prairie (~5 miles east — toward Dallas), Pantego/Dalworthington Gardens (small enclaves within Arlington), Kennedale (~5 miles south), plus broader DFW Metroplex access (Fort Worth ~15 miles west, Dallas ~20 miles east, DFW Airport ~12 miles north)). See Home Affordability Calculator. Note that El Paso County's effective property tax rate runs roughly 2.0-2.4% of assessed value annually — well above the national average and Texas's structural cost variable (the state has no income tax and partly compensates through high property tax). Combined with Texas's lack of state income tax on wages, total tax burden on El Paso homeownership is meaningfully favorable for moderate earners but more variable for high-income homeowners with expensive properties.
How to Evaluate Whether Your Salary Is Enough
A salary number means nothing without context. $200,000 sounds like a strong income — and nationally, it puts you ahead of roughly 67% of individual earners. But whether it is actually enough depends entirely on where you live, how you are taxed, what housing costs, and what your financial goals require.
The five indicators that matter most when evaluating a salary in any city are purchasing power, effective tax rate, housing affordability, income percentile relative to local residents, and savings capacity. Each of these tells you something different about your financial position, and together they give you a complete picture that a raw salary number cannot.
In Arlington, your $200,000 has a purchasing power equivalent of approximately $208,333 in national average terms. Arlington's cost of living index runs roughly 4% below the national average, meaning your nominal salary buys somewhat more locally than it would in an average-cost city — primarily driven by accessible housing and modest tax costs.
Understanding Purchasing Power and Cost of Living
Purchasing power measures what your salary can actually buy in a specific location. The Bureau of Economic Analysis publishes Regional Price Parities (RPPs) that quantify price differences across metro areas. These parities account for housing, groceries, transportation, healthcare, and other essentials — not just rent.
When someone says Arlington has average costs, they are usually thinking about rent. But cost of living encompasses much more. Groceries in high-cost metros typically run 10-20% above the national average. Transportation varies dramatically — cities with strong public transit like New York save residents thousands per year on car ownership, while car-dependent cities like Houston require $8,000-12,000/year for vehicle costs. Healthcare premiums and out-of-pocket costs also vary by region, with Northeastern cities generally running 5-15% higher than Southern metros.
The practical impact: on $200,000 in Arlington, after adjusting for all these cost differences, your real spending power is $208,333. Every dollar you earn buys roughly 104 cents of national-average goods and services compared to a national-average city. This is the number you should use when comparing job offers across cities — not the nominal salary.
Federal, State, and FICA Taxes on $200,000
Your gross salary and your take-home pay are two very different numbers. On $200,000, three layers of taxation reduce your paycheck before you see a dollar.
Federal income tax uses a progressive bracket system. You do not pay one flat rate on your entire income — instead, each portion of your income is taxed at increasing rates. For 2024-2025, the brackets are 10% on the first $11,600, 12% on $11,601-$47,150, 22% on $47,151-$100,525, and 24% on $100,526-$191,950. After the standard deduction of $14,600, your federal tax on $200,000 is approximately $15,000. Your marginal rate (the rate on your next dollar earned) is 22%, but your effective federal rate is closer to 15%.
FICA taxes (Social Security and Medicare) are a flat 7.65% on earned income — 6.2% for Social Security (up to the $168,600 wage base in 2024) and 1.45% for Medicare. On $200,000, FICA costs you $7,650/year. Unlike income tax, there is no deduction or bracket — every dollar from the first to the last is taxed.
State income tax varies dramatically. TX charges 0% on your income, costing approximately $0/year on $200,000. Nine states (Texas, Florida, Nevada, Washington, Tennessee, Wyoming, South Dakota, Alaska, and New Hampshire) charge no state income tax at all. On $200,000, the difference between living in a no-tax state and a high-tax state like California can be $8,000-$20,000 per year — money that goes directly to savings, investments, or quality of life.
Combined, your estimated effective tax rate in Arlington on $200,000 is approximately 26%, leaving you with roughly $147,162/year or $12,264/month in take-home pay.
The Housing Affordability Rules
Housing is almost always the largest single expense in any budget, and the gap between affordable and unaffordable cities is staggering. Two widely used rules help determine whether your salary supports comfortable housing:
The 28% rule (used by mortgage lenders): total housing costs — rent or mortgage, property tax, insurance, and HOA fees — should not exceed 28% of your gross monthly income. On $200,000, that means a maximum of $2,333/month for housing.
The 30% rule (used by financial planners): a slightly more generous threshold often applied to renters. On $200,000, that is $2,500/month.
In Arlington, the median one-bedroom rent is approximately $1,300/month. This falls within the 30% guideline, meaning housing in Arlington is manageable at this salary level. You have room in your budget for savings, debt payoff, and discretionary spending without housing squeezing everything else.
When housing exceeds 30% of income, financial advisors call this being "cost-burdened." The Department of Housing and Urban Development (HUD) uses the same threshold. Being cost-burdened does not mean you cannot live in a city — it means other goals (retirement savings, emergency fund, travel, investing) get compressed. Understanding this trade-off is essential before accepting a job offer or signing a lease.
How to Compare Job Offers Across Cities
If you are considering a job in Arlington — or comparing Arlington to another location — salary is only one variable in the equation. A complete comparison requires five adjustments:
1. Adjust for cost of living. A $200,000 offer in Arlington has the purchasing power of $208,333 nationally. If you currently earn a higher nominal salary in a more expensive city, the Arlington offer may actually represent a real-terms raise despite the lower number — Arlington's lower cost of living and no state income tax on wages (Texas structural advantage) compound the difference. Use the salary adjuster at the top of this page to run your specific comparison.
2. Calculate the tax difference. Moving from a no-tax state to TX costs you approximately $3,070/year in state taxes alone. Factor this into any negotiation.
3. Value the full compensation package. Base salary is often 60-80% of total compensation. Employer 401(k) match (typically 3-6% of salary), health insurance (employer-paid premiums worth $6,000-15,000/year), equity or RSUs, signing bonuses, and paid time off all have real dollar values. A lower salary with a 6% 401(k) match and fully paid health insurance may net you more than a higher salary with a 3% match and high-deductible plan.
4. Factor in commute costs. A 30-minute longer commute costs you roughly 250 hours per year — over six full work weeks. Assign a dollar value to that time ($25-50/hour for most professionals) and add transportation costs. In Arlington, most residents rely on personal vehicles, so budget $6,000-12,000/year for car ownership including payments, insurance, gas, and maintenance.
5. Consider lifestyle costs. Dining out, entertainment, gym memberships, childcare, and healthcare costs all vary by city. Arlington's moderate costs mean your discretionary budget stretches comfortably.
Building Financial Security on $200,000
Regardless of where you live, financial security comes from consistently executing three habits: saving an adequate percentage of income, maintaining a fully funded emergency reserve, and investing for long-term growth. Here is what each looks like at your income level in Arlington.
Savings rate target: 20% of take-home. On $147,162/year take-home in Arlington, a 20% savings rate means setting aside $29,432/year ($2,453/month). This covers retirement contributions, emergency fund building, and other savings goals combined. If 20% feels out of reach, start at 10% and increase by 1% every quarter until you reach 20%.
Emergency fund: 3-6 months of essential expenses. Essential expenses typically run 50-60% of take-home pay — housing, food, transportation, insurance, and minimum debt payments. In Arlington, a 6-month emergency fund would be approximately $40,471. Build this before investing aggressively. A high-yield savings account earning 4-5% APY keeps your emergency fund growing while remaining fully liquid.
Retirement savings benchmarks. Fidelity recommends saving 1x your salary by age 30, 3x by 40, 6x by 50, and 10x by 67. On $200,000, that means having $200,000 saved by 30, $300,000 by 40, and $600,000 by 50. If your employer offers a 401(k) match, contribute at least enough to capture the full match — that is an immediate 50-100% return on your money. After the match, consider a Roth IRA (income limits apply) for tax-free growth.
Debt management. If you carry high-interest debt (credit cards at 20%+ APR), prioritize paying it off before investing beyond the employer match. The guaranteed 20% return from eliminating credit card debt exceeds any realistic investment return. Once high-interest debt is cleared, direct that payment toward savings and investing.
Common Mistakes When Evaluating Salary by Location
Comparing nominal salaries without adjusting for cost of living. A $120,000 offer in San Francisco has less purchasing power than a $90,000 offer in Raleigh. Always convert to purchasing-power-adjusted terms before comparing. The interactive tool at the top of this page does this automatically.
Ignoring state and local taxes. The difference between a 0% state tax (Texas, Florida, Washington) and a 9-13% state tax (California, New York, New Jersey) can equal $5,000-$20,000/year on the same salary. This is real money that compounds over a career — $10,000/year invested at 7% for 20 years grows to $438,000.
Anchoring to rent without considering total housing costs. Rent is the most visible cost, but property tax (if buying), renter's or homeowner's insurance, utilities, and maintenance add 20-40% on top of base housing cost. In Arlington, utilities typically run $150-250/month for a one-bedroom apartment.
Overlooking non-salary compensation. Two offers with identical salaries can differ by $15,000-30,000 in total value once you factor in 401(k) match, health insurance, equity, PTO, and other benefits. Always compare total compensation, not base salary.
Not planning for lifestyle inflation. When your income increases — whether from a raise, promotion, or city move — the natural tendency is to increase spending proportionally. This is lifestyle inflation, and it is the primary reason high earners often have surprisingly low net worth. Set your savings rate first, then live on what remains. A $200,000 salary with a 20% savings rate builds wealth faster than a $130,000 salary with a 5% savings rate.
Failing to negotiate. Most salary offers have 10-20% negotiation room, especially for experienced candidates. Research comparable salaries using tools like this one, know your purchasing-power-adjusted number, and present a data-driven case. The cost-of-living comparison feature above gives you exactly the evidence you need.
Key Indicators at a Glance
| Indicator | Your Number | Guideline | Status |
|---|---|---|---|
| Gross Salary | $200,000/year | National median: $59,000 | Above median |
| Take-Home Pay | $147,162/year | — | 74% of gross |
| Purchasing Power | $208,333 | = gross in avg city | 28% above avg |
| Housing (30% rule) | Max $5,000/mo | Median 1BR: $1,300 | Within budget |
| State Tax | 0% | Range: 0-13.3% | $0/yr cost |
| vs City Median | $200,000 | Arlington: $60,000 | +233% vs local |
Arlington: Financial Landscape
Arlington combines its uniquely central position in the Dallas-Fort Worth Metroplex (geographic heart of the DFW MSA — about 15 miles from Fort Worth, 20 miles from Dallas, 12 miles from DFW International Airport) with the General Motors Arlington Assembly Plant (~4,500+ workers as one of GM's flagship full-size SUV assembly facilities producing the Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, and Cadillac Escalade), the University of Texas at Arlington (UTA — the largest university in North Texas and the second-largest in the UT System; Carnegie Tier 1 research institution; 48,000+ students with $17.1B annual economic impact), Texas Health Resources (one of the largest faith-based nonprofit health systems in the U.S. and the largest in North Texas), the Arlington Entertainment District as the most concentrated sports/entertainment venue cluster in North America (AT&T Stadium home of the Dallas Cowboys at 105,000+ capacity; Globe Life Field home of the 2023 World Series Champion Texas Rangers; Six Flags Over Texas as the original Six Flags theme park since 1961; Hurricane Harbor; Texas Live!; Esports Stadium Arlington as North America's largest dedicated esports facility — 8,000+ direct and indirect jobs; 48.9 million annual visitors), D.R. Horton (Fortune 500 HQ as America's largest homebuilder by volume), GM Financial, and Bell Textron's North Arlington workforce. Combined with Texas's no state income tax (one of just nine states with no income tax), housing modestly below the national median (metro median ~$360K — well below Austin's $475K and Dallas's $400K), Tarrant County's higher-but-typical-for-Texas property tax (~2.0-2.4% effective — Texas's structural offset for the lack of income tax), and a cost of living roughly 4% below the national average, Arlington delivers strong purchasing power for automotive manufacturing, university, healthcare, entertainment, homebuilding, and government professionals.
At $200,000, Arlington delivers a rare combination: high gross salary paired with one of the more accessible costs of living among major U.S. metros. Your salary translates to approximately $208,333 in national-average purchasing power, putting you firmly in the upper tier of local earners. The financial focus at this income shifts to maximizing all tax-advantaged accounts, optimizing equity compensation if applicable, and treating real estate as a wealth-building lever beyond your primary residence.
Economic Profile
Arlington's economy spans automotive manufacturing (General Motors Arlington Assembly Plant at ~4,500+ workers as one of GM's flagship full-size SUV assembly facilities producing the Tahoe, Suburban, Yukon, and Escalade), education and academic research (University of Texas at Arlington as the largest university in North Texas with 48,000+ students and Carnegie Tier 1 research designation; $17.1B annual economic impact), healthcare (Texas Health Resources as one of the largest faith-based nonprofit health systems in the U.S. and the largest in North Texas; Texas Health Arlington Memorial Hospital plus the broader 25,000+ Texas Health Resources workforce), entertainment and sports (the Arlington Entertainment District as the most concentrated sports/entertainment venue cluster in North America — AT&T Stadium home of the Dallas Cowboys at 105,000+ capacity; Globe Life Field home of the 2023 World Series Champion Texas Rangers; College Park Center home of the Dallas Wings WNBA; Six Flags Over Texas as the original Six Flags theme park since 1961; Hurricane Harbor; Texas Live! mixed-use entertainment district; Esports Stadium Arlington as North America's largest dedicated esports facility — combined 8,000+ direct and indirect jobs; Arlington has 48.9 million annual visitors), homebuilding (D.R. Horton Fortune 500 HQ as America's largest homebuilder by volume), automotive finance (GM Financial major Arlington operations), aerospace (Bell Textron's major Fort Worth-area presence with North Arlington workforce in helicopter and tiltrotor aircraft manufacturing), city government (the City of Arlington recognized as the best-run city in Texas by WalletHub for two consecutive years), tech and innovation (200+ tech companies; the Innovation Quarter; growing data and AI industry), and the broader DFW Metroplex employment ecosystem (Arlington sits at the geographic center of the nation's fourth-largest labor supply with 180,000+ college and university students across 33 colleges and universities; ~15 miles from Fort Worth, ~20 miles from Dallas, ~12 miles from DFW International Airport). Arlington itself has approximately 394,000 residents — the 48th largest city in the United States and a major component of the Dallas-Fort Worth-Arlington Metropolitan Statistical Area (DFW MSA), which has approximately 7.6 million residents and is the fourth-largest U.S. metro area. Arlington occupies a geographically central position in the DFW Metroplex — about 15 miles from downtown Fort Worth, 20 miles from downtown Dallas, and 12 miles from DFW International Airport. Major employment in Arlington itself is concentrated at the GM Arlington Assembly Plant, the UTA campus, the Entertainment District (AT&T Stadium, Globe Life Field, Texas Live!, Six Flags Over Texas, Hurricane Harbor), the Arlington Highlands and Lincoln Square commercial corridors, and the city's manufacturing/distribution corridors. Many Arlington residents commute to broader DFW employment in Fort Worth (Bell Textron, BNSF Railway, American Airlines HQ), Dallas (JPMorgan, Texas Instruments), DFW Airport (American Airlines operations), Plano (Toyota Motor North America HQ), and Frisco/Irving (multiple Fortune 500 HQs).
Job Market & Top Employers
Arlington's job market is anchored by an unusual combination of automotive manufacturing, education and academic research, healthcare, entertainment and sports, homebuilding, and the broader DFW Metroplex employment ecosystem — distinctive for the depth of its entertainment-sports-tourism cluster relative to metro size. Automotive manufacturing is the standout sector — General Motors Arlington Assembly Plant at ~4,500+ workers as one of GM's flagship full-size SUV assembly facilities producing the Tahoe, Suburban, Yukon, and Escalade. GM Financial (the financial services arm of General Motors) has major Arlington operations.
Education is anchored by the University of Texas at Arlington (UTA) — the largest university in North Texas and the second-largest in the UT System; Carnegie Tier 1 research institution; 48,000+ students with $17.1B annual economic impact. Healthcare: Texas Health Resources as one of the largest faith-based nonprofit health systems in the U.S. and the largest in North Texas; major Arlington presence including Texas Health Arlington Memorial Hospital. Entertainment and sports: the Arlington Entertainment District is the most concentrated sports/entertainment venue cluster in North America — AT&T Stadium home of the Dallas Cowboys at 105,000+ capacity; Globe Life Field home of the 2023 World Series Champion Texas Rangers; College Park Center home of the Dallas Wings WNBA; Six Flags Over Texas as the original Six Flags theme park since 1961; Hurricane Harbor; Texas Live! mixed-use entertainment district; Esports Stadium Arlington as North America's largest dedicated esports facility — combined 8,000+ direct and indirect jobs. Homebuilding: D.R. Horton Fortune 500 HQ as America's largest homebuilder by volume. Aerospace: Bell Textron's major Fort Worth-area presence with North Arlington workforce in helicopter and tiltrotor aircraft manufacturing. City government: the City of Arlington recognized as the best-run city in Texas by WalletHub for two consecutive years. Broader DFW Metroplex employment: Arlington sits at the geographic center of the nation's fourth-largest labor supply with 180,000+ college and university students across 33 colleges and universities.
Tax Environment
Texas is one of just nine U.S. states with no state income tax — your $100,000 salary in Arlington faces zero state-side income tax beyond federal withholding and FICA. Texas also does not permit city or county-level income taxes, so the entire income-tax line on an Arlington paycheck is just federal income tax plus standard FICA payroll taxes. This puts Arlington among the highest take-home-pay metros in the country at any given salary level, and the structural advantage compounds significantly for higher earners. The Texas Constitution explicitly prohibits a state income tax — a structural protection that has been in place for decades and would require a constitutional amendment to change.
Sales tax in Arlington is 8.25% combined (6.25% state + 2.0% local — at Texas's statutory cap), among the higher combined rates in the country. Property tax in Tarrant County runs roughly 2.0-2.4% of assessed value annually — well above the national average and Texas's structural offset for the lack of income tax. On a $360,000 home, that's roughly $7,200-$8,640/year in property tax. Texas does provide a homestead exemption ($100,000 standard for school district taxes plus 10% appraised value cap on primary residences), and 2023 legislation expanded property tax relief — but the headline rate remains structurally elevated by national standards. For tax planning, the absence of state income tax means pre-tax retirement contributions only deliver federal-tax savings (no state-tax benefit). The structural decision for most Arlington residents is whether the substantial income-tax savings (no state income tax saves $5,000+/year on a $100K salary versus high-tax states like CA at 9.3%, OR at 9.9%, MN at 9.85%, NY at 6.85%, MD at 4.75%) outweighs the property tax premium for homeowners. Use our Take-Home Pay Calculator to model your tax burden, and the Texas State Tax Guide for a detailed breakdown.
Housing Market
Arlington's housing market is exceptionally accessible — the metro median home sale price was approximately $360,000 in early 2026, well below Austin's $475K, Dallas's $400K, and dramatically below coastal peers. Median 1BR rent in the city is approximately $1,300-$1,500/month, with significant variation: premium neighborhoods like Pantego/Dalworthington Gardens, Viridian (the master-planned lakeside development), the area around UT Arlington and downtown, and the U.S. 287/SH-360 luxury corridors command $1,500-$2,200+ for newer construction or premium location, while value neighborhoods in older central Arlington, parts of east Arlington, and west Arlington offer 1BR units in the $1,050-$1,250 range. Inner-suburb rentals in Mansfield, Grand Prairie, Pantego/Dalworthington Gardens, and Kennedale typically run $1,200-$1,650.
The buy-versus-rent calculus in Arlington tilts strongly toward buying for stable workers because home prices remain meaningfully more accessible than most coastal metros and other major Texas peer cities (a worker earning $75,000 can typically afford a $360,000+ home with standard down payment). The structural offset is Tarrant County property tax at roughly 2.0-2.4% effective — well above the national average and Texas's structural cost variable. On a $360,000 home, that's roughly $7,200-$8,640/year in property tax, meaningful for monthly carrying cost. Many buyers carefully weigh school districts (Mansfield ISD, Hurst-Euless-Bedford ISD, and Carroll ISD in Southlake are perennial top-rated; Arlington ISD varies by school) and proximity to GM Arlington (the city's manufacturing corridor), the Entertainment District (downtown Arlington), UT Arlington (downtown), DFW Airport (~12 miles north for airline workers), Bell Textron (Fort Worth ~15 miles west), Toyota Motor North America HQ (Plano ~25 miles northeast), or broader Dallas employment (~20 miles east).
Cost of Living Beyond Housing
Arlington's day-to-day costs run modestly below the national average. Housing is meaningfully accessible (metro median ~$360K — well below Austin's $475K and Dallas's $400K), groceries and dining run at or modestly below national averages, and utilities run at or modestly below national averages. Hot, humid North Texas summers drive significant AC costs (Arlington summers regularly exceed 100°F), mild winters keep heating bills low, and Texas gas prices run modestly below the U.S. average.
Healthcare access is exceptional thanks to Texas Health Resources (the largest health system in North Texas with major Arlington presence), Texas Health Arlington Memorial Hospital, and the broader DFW Metroplex healthcare network. Cultural and recreational amenities are unusually deep for the metro size — the Entertainment District (AT&T Stadium, Globe Life Field, Texas Live!), Six Flags Over Texas (the original Six Flags theme park since 1961), Hurricane Harbor water park, the Esports Stadium Arlington, the National Medal of Honor Museum, the Arlington Museum of Art, the Levitt Pavilion (50 free concerts per year), River Legacy Park, the UT Arlington Planetarium Dome Theater, plus easy access to broader DFW amenities (Fort Worth Stockyards, Dallas Arts District, the Kimbell Art Museum) and DFW International Airport (one of the world's leading airports with more direct international flights than any U.S. airport). The biggest cost-of-living advantages are Texas's no state income tax and exceptionally accessible housing — though Texas's higher property tax (~2.0-2.4% in Tarrant County) is a meaningful structural offset for homeowners.
Entertainment Capital + GM Arlington + DFW Center
Arlington occupies a uniquely central position in North Texas — the geographic heart of the Dallas-Fort Worth Metroplex (about 15 miles from Fort Worth, 20 miles from Dallas, 12 miles from DFW International Airport) and one of the fastest-growing cities in the U.S. The city has built a distinctive identity as the 'Entertainment Capital of Texas' — home to AT&T Stadium (the largest special events venue in North America at 105,000+ capacity, home of the Dallas Cowboys), Globe Life Field (the climate-controlled MLB stadium home of the 2023 World Series Champion Texas Rangers — opened March 2020 after Arlington residents voted to fund construction), College Park Center (home of the Dallas Wings WNBA), Six Flags Over Texas (the original Six Flags theme park since 1961), Six Flags Hurricane Harbor (water park), Texas Live! ($250 million mixed-use entertainment district), and Esports Stadium Arlington (North America's largest dedicated esports facility). The Arlington Entertainment District generates over 8,000 direct and indirect jobs and the city sees 48.9 million annual visitors. Beyond entertainment, the General Motors Arlington Assembly Plant employs approximately 4,500+ workers as one of GM's flagship full-size SUV assembly facilities — producing the Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, and Cadillac Escalade.
The University of Texas at Arlington (UTA) is the largest university in North Texas and the second-largest in the University of Texas System — recently designated as a Tier 1 research institution by the Carnegie Classification of Institutions of Higher Education. UTA serves 48,000+ students with $17.1 billion in annual economic impact, and over 65% of graduates remain in North Texas. Counting UTA and the other 33 colleges and universities across North Texas, the Metroplex has 180,000+ students. Texas Health Resources — one of the largest faith-based, nonprofit health systems in the United States and the largest in North Texas — has a major Arlington presence including Texas Health Arlington Memorial Hospital. D.R. Horton, America's largest homebuilder by volume (Fortune 500), is headquartered in Arlington. GM Financial (the financial services arm of General Motors) has major Arlington operations. Bell Textron (the major helicopter and tiltrotor aircraft manufacturer headquartered in nearby Fort Worth) has significant North Arlington-area workforce. The Innovation Quarter is attracting 200+ tech companies and growing AI/data industry investment, with $4 billion in Entertainment District development since 2020. The City of Arlington has been recognized as the best-run city in Texas by WalletHub for two consecutive years and selected by the Bloomberg Foundation as one of 13 cities in the U.S. that best use innovation to improve service. Combined with Texas's no state income tax (one of just nine states with no income tax — same structural advantage as Houston, Austin, San Antonio, Dallas, Fort Worth, El Paso), housing modestly below the national median (metro median ~$360K — well below Austin's $475K and Dallas's $400K), Tarrant County's higher-but-typical-for-Texas property tax (~2.0-2.4% effective — Texas's structural offset for the lack of income tax), and a cost of living roughly 4% below the national average, Arlington delivers strong purchasing power for automotive manufacturing, university, healthcare, entertainment, homebuilding, and government professionals.
Financial Planning in Arlington
At $200,000 in Arlington, the combination of high income and Arlington's relatively favorable cost of living can drive savings rates of 30-50% — exceptional for accelerating financial independence. The highest-leverage moves are: max all tax-advantaged accounts (401(k) at $23,000, HSA at $4,150 individual, backdoor Roth IRA at $7,000); explore mega-backdoor Roth and after-tax 401(k) contributions if your plan allows (potentially adding $30,000-$40,000/year of Roth space); evaluate equity compensation strategies if you have RSUs, ISOs, or NSOs; and consider real estate as a wealth-building lever beyond your primary residence. Texas has no state income tax on wages, so high earners capture only federal tax savings on pre-tax retirement contributions (~32-37% per dollar at this income tier). The structural cost variable in Texas is property tax — El Paso County effective rates run roughly 2.0-2.4%, and high earners with expensive homes face meaningful annual property tax bills. For workers with location flexibility, comparing El Paso to high-state-tax metros (CA at 9.3-12.3%, NY at 6.85-10.9%, OR at 9.9%) is dramatically favorable for take-home, particularly for renters or homeowners with moderately-priced homes; the math becomes more nuanced for owners of $1M+ properties. Use our Cost of Living Calculator to compare Arlington against other cities, and the Retirement Calculator to model FIRE trajectories.
Frequently Asked Questions
People Also Ask
Compare Other Salaries & Cities
Explore how different salaries play out in Arlington or compare Arlington with other major US cities:
Related Calculators
Tools to help you plan your finances in Arlington: