Compare taxes and see how much you save moving from California to Texas
Texas has significantly higher property taxes than California—1.60% vs 0.71% average effective rate. On a $500,000 home, you'd pay roughly $8,000/year in Texas versus $3,550 in California. However, Texas has no state income tax while California's reaches 13.3%. For most homeowners, the total tax burden depends on income level: high earners often still save in Texas despite property taxes, while middle-income earners may pay more overall.
Avg Effective Rate
Base 1% (Prop 13) plus local bonds/assessments
Avg Effective Rate
No state income tax offset by high property tax
At $500,000 home income:
That is $371/month back in your pocket!
| Income | CA Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $300,000 home | $2,130 | $4,800 | $2,670 | $26,700 |
| $400,000 home | $2,840 | $6,400 | $3,560 | $35,600 |
| $500,000 home | $3,550 | $8,000 | $4,450 | $44,500 |
| $750,000 home | $5,325 | $12,000 | $6,675 | $66,750 |
| $1,000,000 home | $7,100 | $16,000 | $8,900 | $89,000 |
| $1,500,000 home | $10,650 | $24,000 | $13,350 | $133,500 |
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Moving from California to Texas? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →Texas relies heavily on property tax to fund schools and local government because it has no state income tax. California's Proposition 13 (1978) caps property tax at 1% of purchase price plus max 2% annual increases. Texas has no such cap—properties are reassessed at full market value regularly.
Not necessarily. A $500K Texas home costs ~$4,450 more in property tax than California. But if you earn $150,000, you'd pay ~$11,000 in California income tax and $0 in Texas. High earners typically save in Texas overall; middle-income homeowners with expensive homes may pay more.
Prop 13 (1978) limits California property tax to 1% of assessed value at purchase, with maximum 2% annual increases regardless of market value changes. This means longtime homeowners often pay far less than new buyers on identical homes. Prop 19 (2020) allows seniors to transfer their tax basis when moving.
Texas offers a homestead exemption removing $100,000 from taxable value for school taxes. Seniors (65+) get an additional $10,000 exemption and can freeze school taxes. Disabled veterans may qualify for full exemption. These can reduce a $500K home's taxable value to $390K.