Texas consistently ranks as one of the nation’s most favorable business climates based on its low tax burden and competitive regulatory environment. Aggregate costs for real estate, energy, wages and taxes are below most states in the country. Austin's cost of living is 1.2% above the national average in 2021. Texas features no personal income tax, and overall the state has one of the lowest state and local tax burdens in the nation, ranking 38th among the 50 states in taxes paid per $1,000 of personal income. Texas consistently places as one of the best states for business in numerous rankings.