Northern Virginia (NoVA) tech workers are increasingly relocating to Texas. Virginia's 5.75% top rate kicks in at just $17,000 income (one of the lowest thresholds nationally), while Texas charges 0% (constitutionally prohibited). At $100,000: Virginia $5,175 vs Texas $0. The catch: Texas property taxes (1.6%) are nearly double Virginia's (0.82%). For high earners, income tax savings still win; for modest earners with expensive homes, it's closer.

By CountryTaxCalc Research Team

Last Updated: April 2026

The Big Picture

🏛️ Virginia

5.75%

Progressive Tax

Top rate at $17K income

⭐ Texas

0%

No Income Tax

Constitutionally prohibited

Typical Annual Savings

At $100,000 income:

$5,175

That is $431/month back in your pocket!

Tax Savings by Income Level

IncomeVA TaxTX TaxSavings10-Year
$50,000 $2,393$0TX saves $2,393$23,930
$75,000 $3,831$0TX saves $3,831$38,310
$100,000 $5,175$0TX saves $5,175$51,750
$150,000 $8,050$0TX saves $8,050$80,500
$200,000 $10,925$0TX saves $10,925$109,250
$300,000 $16,675$0TX saves $16,675$166,750

Virginia Pros and Cons

✅ Pros

  • Proximity to DC: federal contracting, lobbying, government jobs
  • Low property taxes (0.82% vs TX 1.6%)
  • Military benefits: $40K retirement exempt, Fort Belvoir nearby
  • Four seasons with mild winters (vs Midwest)

❌ Cons

  • 5.75% top rate hits at just $17K income (very low threshold)
  • DC traffic: worst in nation (NoVA commutes brutal)
  • Housing expensive: NoVA median $600K+
  • Limited remote work for government contractors (security clearances)

Texas Pros and Cons

✅ Pros

  • 0% state income tax (constitutionally prohibited)
  • Austin tech boom: Google, Apple, Meta, Tesla
  • Lower housing: Austin $550K vs NoVA $650K median
  • No traffic equivalent to DC (except Houston rush hour)

❌ Cons

  • Property taxes 1.6% (nearly double Virginia's 0.82%)
  • Far from DC: lose government contractor access
  • Extreme summer heat (100°F+ for months)
  • Car-dependent: no Metro equivalent
💡

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Frequently Asked Questions

Q: How much will I save moving from Virginia to Texas?

At $100,000 income: save $5,175/year in income tax. However, Texas property taxes are nearly double (1.6% vs 0.82%). On a $500K home: TX = $8,000/year, VA = $4,100/year. Net savings at $100K income with $500K home: $5,175 - $3,900 = $1,275/year. Higher earners see bigger net gains; homeowners with modest incomes may break even.

Q: Is Austin good for DC tech workers?

Yes—Austin has become a major tech hub with Apple, Google, Meta, Tesla, and Oracle. However, you lose proximity to federal contractors and government clients. If your work requires security clearances or DC presence, remote from Texas may not be viable. Pure tech workers (not defense/government) find Austin's job market excellent and salaries competitive with NoVA.

Q: What about Virginia's low property tax advantage?

Virginia's 0.82% property tax is a significant advantage over Texas's 1.6%. On a $600,000 home: VA = $4,920/year, TX = $9,600/year—a $4,680 difference. This can offset or exceed income tax savings for homeowners with modest incomes. Renters and high earners benefit most from Texas; homeowners with incomes under $100K should calculate carefully.

Q: Do military retirees benefit from Virginia or Texas?

Both offer benefits. Virginia exempts up to $40,000 of military retirement pay from state income tax. Texas exempts all income (0% rate). For a military retiree with $60K pension + $50K other income: Virginia taxes ~$4,000, Texas taxes $0. Texas wins, but Virginia's lower property taxes and proximity to military bases (Fort Belvoir, Pentagon) may matter more for some retirees.

Q: Should I choose Dallas or Austin over NoVA?

Austin for tech workers—it's become 'Silicon Hills' with major tech employers. Dallas for corporate roles—more Fortune 500 HQs (AT&T, American Airlines, Southwest). Houston for energy sector. All three offer zero income tax and lower costs than NoVA. Austin is most similar to NoVA culturally (educated, liberal-leaning); Dallas is more corporate-traditional.

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