Can a $120,000 salary cover rent in Austin after taxes?
Quick answer
Likely manageable on a 30% planning rule. HUD Fair Market Rent is at or under 30% of estimated monthly take-home.
The numbers
- Gross offer: $120,000 / year
- Filing status: single (v0 default)
- State: TX (no broad state wage income tax in v0 model)
- Estimated take-home: $93,250 / year ($7,770.83 / month)
- HUD FMR area: Austin-Round Rock-San Marcos, TX MSA
- HUD 2-bedroom rent benchmark: $1,852 / month
- Rent / net: 23.8%
- Approx. gross for 30% rent/net planning rule: $92,751
What this means in Austin
For a $120,000 offer in TX, our model estimates about $93,250 left after federal income tax and employee FICA. Against HUD’s 2-bedroom Fair Market Rent for Austin-Round Rock-San Marcos, TX MSA, housing would claim roughly 23.8% of monthly take-home.
A common planning shorthand is keeping rent near 30% of take-home. That is not a rule you must follow, and your real rent, commute, household size, and deductions can move the answer a lot.
Run your own numbers
Sources
- IRS / SSA parameters for tax year 2026 (see Methodology)
- HUD Fair Market Rent county-level data (FY index)