Organizers say the competition will be held at the Allen Event Center, about 25 miles north of Dallas, with the winner crowned July 7.
Officials say Allen agreed to pay a $20,000 sponsorship fee to help with some pageant costs.
The Miss Texas pageant was held at Texas Hall, at the University of Texas at Arlington, since 2009 after more than 45 years in Fort Worth.
The Fort Worth Star-Telegram reported Tuesday that the move came after a leadership change in the host Miss Texas Organization. The decision to move the pageant was made in January and offers from several cities, including Arlington, were considered.