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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A California VS COUNTRY B Texas

Side-by-side analysis of income tax, effective rates, and take-home pay for California and Texas in 2026.

Daniel · CountryTaxCalc Updated May 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
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 bur…
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.
🌴
COUNTRY A
California
TAX RATE
0.71%
Avg Effective Rate
Base 1% (Prop 13) plus local bonds/assessments
🤠
COUNTRY B
Texas
TAX RATE
1.60%
Avg Effective Rate
No state income tax offset by high property tax
TYPICAL ANNUAL DIFFERENCE
Moving from Texas → California at $500,000 home
$4,450
California saves on property tax
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS 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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🌴

California Pros & Cons

+ PROS
  • Lower property tax rates (Prop 13 cap)
  • Assessed value grows max 2%/year
  • Predictable long-term property costs
  • Transfer of tax basis (Prop 19)
− CONS
  • High income tax (up to 13.3%)
  • High home purchase prices
  • Local bonds/Mello-Roos add to rate
  • New buyers pay more than long-term owners
🤠

Texas Pros & Cons

+ PROS
  • No state income tax
  • Lower home prices than CA
  • Homestead exemption ($100K off value)
  • Over-65 school tax freeze
− CONS
  • Property tax 2x+ California rate
  • No cap on assessment increases
  • High insurance costs in some areas
  • MUD/special district taxes add up
FAQ

Frequently Asked Questions

Why is Texas property tax so much higher than California?

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.

Does high property tax make Texas more expensive than California?

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.

What is California's Proposition 13?

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.

What exemptions reduce Texas property tax?

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.
From the brief
PT38.4%−9.6 vs. headline
CY17.8%incl. 60-day rule
AE 0.0%substance required
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