Moving from California to Texas: Exactly How Much Tax You'll Save in 2026

If you live in California, chances are you know someone who has moved to Texas recently. The "Texas Exodus" is real, and while some people move for cheaper housing or a different lifestyle, let's be honest: a lot of people move because they are tired of paying California taxes.

But is the grass actually greener (and cheaper) in the Lone Star State? Let's run the math on what moving from California to Texas actually does to your taxes in 2026.

The Big Win: 0% State Income Tax

The biggest and most obvious difference between the two states is the income tax.

California has a progressive income tax system with rates that start at 1% and climb all the way to 13.3% for the state's highest earners (plus an extra 1.1% payroll tax for SDI!). It's the highest state income tax rate in the country.

Texas, on the other hand, has 0% state income tax. Nothing. Zip. Nada.

Let's look at the numbers for a single filer in 2026:

• Making $75,000: In CA, you pay ~$3,200 in state income tax. In TX, you pay $0. Savings: $3,200/yr.
• Making $150,000: In CA, you pay ~$10,500 in state income tax. In TX, you pay $0. Savings: $10,500/yr.
• Making $300,000: In CA, you pay ~$27,000 in state income tax. In TX, you pay $0. Savings: $27,000/yr.

If you're a high earner, moving to Texas is literally like giving yourself a five-figure raise.

The Catch: Property Taxes

Before you pack your bags, we need to talk about how Texas makes its money. Texas has no state income tax, but it has some of the highest property taxes in the nation.

In California, Proposition 13 limits property tax rates to roughly 1% of the home's assessed value at the time of purchase, and limits how fast that assessment can grow.

In Texas, the average effective property tax rate is around 1.8% to 2.2%, depending on the county, and your home is reassessed at market value frequently.

The Property Tax Scenario:

Let's say you buy a $500,000 house in both states.

• California Property Tax: ~$5,000 per year.
• Texas Property Tax: ~$10,000 per year.

So, Texas just took back $5,000 of your income tax savings.

The Final Verdict

Whether moving from California to Texas saves you money depends entirely on the balance between your income and your housing costs.

You will save massive amounts of money if:

• You are a high-income earner (over $150k).
• You rent instead of buy.
• You buy a modestly priced home relative to your income.

You might NOT save money (and could even lose money) if:

• You are a lower-income earner (where CA income tax is already low).
• You buy a massive, expensive house in Texas.

Want to run your exact numbers? Use our California Tax Calculator and our Texas Tax Calculator to compare your take-home pay side-by-side.