See exactly how much you'll save by moving from CA to TX
Highest in the Nation
9 progressive brackets
1% - 13.3%
No State Income Tax
Constitutional prohibition
on income tax
At $100,000 income:
That's $480/month back in your pocket!
Income: $0
State Tax: $0
Take Home: $0
Income: $0
State Tax: $0
Take Home: $0
| Income | CA State Tax | TX State Tax | Annual Savings | 10-Year Savings |
|---|---|---|---|---|
| $50,000 | $1,711 | $0 | $1,711 | $17,110 |
| $75,000 | $3,349 | $0 | $3,349 | $33,490 |
| $100,000 | $5,762 | $0 | $5,762 | $57,620 |
| $150,000 | $10,991 | $0 | $10,991 | $109,910 |
| $250,000 | $22,471 | $0 | $22,471 | $224,710 |
Property taxes are often the biggest surprise when relocating. Here's the truth: Texas property taxes are significantly higher than California's (1.6% vs 0.74% average), BUT the income tax savings usually outweigh this difference.
| Home Value | CA Property Tax | TX Property Tax | Annual Difference |
|---|---|---|---|
| $300,000 | $2,220 | $4,800 | +$2,580 in TX |
| $500,000 | $3,700 | $8,000 | +$4,300 in TX |
| $750,000 | $5,550 | $12,000 | +$6,300 in TX |
| $1,000,000 | $7,400 | $16,000 | +$8,400 in TX |
Home Value: $0
Property Tax Rate: 0.74%
Annual Property Tax: $0
Protected by Prop 13
Home Value: $0
Property Tax Rate: 1.60%
Annual Property Tax: $0
No state income tax offset
$0
Example 1: $400,000 home
Example 2: $650,000 home
The key question: Do the income tax savings outweigh the higher property taxes?
Scenario: $100k income, $500k home
Scenario: $150k income, $750k home
💡 Rule of Thumb: Higher your income relative to home value, the better Texas looks. If you earn $150k+ but buy a modest home, Texas is a clear win.
Yes, property taxes are higher in Texas (1.6% vs 0.74%), BUT homes cost 40-60% less:
Many people buy bigger homes in TX for the same price, so the actual property tax bill might be similar even at a higher rate.
San Francisco 2BR: ~$3,500/month
Austin 2BR: ~$1,800/month
Savings: $1,700/month ($20,400/year)
California: ~0.74% of home value (Prop 13 limits increases)
Texas: ~1.60% of home value (no state income tax offset)
On $500k home:
At $100k income:
BUT: Housing is SO much cheaper in TX that you might buy a bigger/nicer home for the same price, making the property tax difference feel larger.
Since 2020, major companies have relocated from CA to TX:
Best for: Tech workers, creatives, outdoors enthusiasts
Vibe: "Keep Austin Weird" - liberal, artsy, music scene
Salary: Tech salaries 70-80% of SF but housing 50% cheaper
Best for: Finance, corporate, families
Vibe: Business-focused, suburban, traditional
Salary: Strong corporate jobs, major HQs
Best for: Energy, healthcare, aerospace
Vibe: Diverse, international, humid
Salary: High energy sector salaries
Best for: Affordability, culture, retirement
Vibe: Historic, family-friendly, relaxed
Salary: Lower than Austin/Dallas but very affordable
The tax savings from moving from California to Texas depend heavily on your income level:
However, Texas has significantly higher property tax rates (avg 1.6-1.8%) compared to California (avg 0.75%). If you own a $500,000 home in Texas, you'll pay ~$8,000-$9,000/year in property tax vs ~$3,750 in California. This partially offsets income tax savings for homeowners.
Best for: High-income earners ($100K+), especially renters or those buying modestly priced homes. Income tax savings far exceed property tax increases.
Less impactful for: Lower-income earners ($50K or less) and those buying expensive homes in Texas (where property tax bite is larger).
A: Yes, at $100k income you'll save $5,762/year on state income tax alone. However, factor in higher property taxes if you buy a home. Total savings depend on your lifestyle.
A: Federal taxes are the same in both states. This comparison focuses on state income tax only. You'll pay the same federal rate regardless of where you live.
A: Similar - CA: 7.25%-10.25%, TX: 6.25%-8.25%. Slightly lower in TX on average, but not a major differentiator.
A: At $100k+, absolutely. That's $480/month extra in your paycheck. Plus dramatically lower housing costs. The combination can improve quality of life significantly.
A: Property taxes are higher in TX. Summer heat is intense. You lose ocean access and perfect weather. It's a trade-off, not a pure win.
A: Not necessarily. Many CA companies now allow remote work from TX. Or look for jobs with companies that moved to TX (Tesla, Oracle, etc.).
If you're an American living abroad and considering a move back to the US, you may have complex tax filing requirements. Even after returning, you may need to catch up on past US tax filings.
Taxes for Expats (TFX) helps Americans abroad and those returning home with:
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Property Tax Rates: California (0.74% statewide average) from Tax-Rates.org; Texas (1.60% statewide average) from Tax-Rates.org. Property tax rates vary significantly by county and municipality.
Income Tax Rates: California and Texas state tax rates from respective state revenue departments.
Disclaimer: Tax calculations are estimates for general informational purposes only. Actual property tax rates vary by county, city, and special districts. Income tax liability depends on deductions, credits, and individual circumstances. Consult a qualified tax professional for advice specific to your situation. Last Updated: February 10, 2026.
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