Moving From California to Texas in 2026: Cost, Housing & Taxes

If you’re moving from California to Texas in 2026, the biggest financial changes are likely to be lower housing costs, a lower overall price level, and the disappearance of California individual income tax from most Texas-earned income after you genuinely establish Texas residency.

But Texas is not cheaper in every category.

Property taxes are considerably higher statewide, household incomes are lower on the median measure used here, sales taxes remain substantial, and the financial outcome can vary dramatically depending on whether you’re moving from Los Angeles, San Francisco, San Diego, or Sacramento and whether you’re landing in Austin, Dallas–Fort Worth, Houston, San Antonio, or another Texas market.

The move can still produce a significant affordability advantage, particularly for renters and homebuyers leaving California’s most expensive metros. The key is to compare the complete household budget, not simply California income tax against Texas’s lack of one.

Our Relocation research takes that broader approach by looking at housing, local costs, taxes, and other factors that can change after an interstate move.

California to Texas: The Numbers at a Glance

The most important takeaway is that Texas’s advantage is driven heavily by housing and overall price levels, while California retains advantages in areas such as median household income and effective property-tax rates.

How Many Californians Are Moving to Texas?

The California-to-Texas migration is not just a popular talking point. It is one of the largest interstate migration flows in the country.

The U.S. Census Bureau’s 2024 State-to-State Migration Flows, released in January 2026, estimate that approximately 77,161 people moved from California to Texas in 2024.

That made California to Texas the largest state-to-state migration route in the United States that year.

The movement was not entirely one-way. Approximately 45,447 people moved from Texas to California, meaning the two states still exchange substantial numbers of residents in both directions.

Even so, the net flow between the two states favored Texas by roughly 31,700 people.

That distinction matters. The data do not show that “everyone is leaving California for Texas.” They show a large two-way migration corridor with a sizable net movement toward Texas.

For broader state-level movement patterns, see our Migration research and our analysis of where Americans are moving in 2026.

Is Texas Really Cheaper Than California?

At the statewide level, yes.

The latest official Bureau of Economic Analysis Regional Price Parities put California’s overall price level at 110.720 in 2024 and Texas at 97.057.

The national benchmark is 100.

That means California’s overall price level was about 14% higher than Texas’s when the two state indexes are compared directly.

California also had the highest overall state price level in the country in the latest BEA release.

Regional Price Parities are useful because they compare the prices consumers pay for a broad mix of goods and services. They are not simply housing indexes.

Housing, however, is one of the biggest reasons California remains more expensive.

For more on how these measures work, see our Cost of Living research.

If Texas is one of several Sun Belt destinations you’re considering, our Texas vs. Florida cost of living comparison examines housing, rent, taxes, insurance, and income across those two states.

Housing Is the Biggest Financial Difference

For many households moving from California to Texas, housing is where the largest potential savings appear.

Home Values

Zillow’s July 31, 2026 Home Value Index reports a typical home value of approximately:

• California: $773,735
• Texas: $301,806

Using the same Zillow measure, California’s typical home value is more than 2.5 times the Texas figure.

You can review the current state data directly through Zillow’s California housing market data and Zillow’s Texas housing market data.

For someone selling a California property and buying in Texas, that difference can dramatically change:

• The down payment required
• The mortgage amount
• Monthly principal and interest
• The size or location of home available within a given budget
• The amount of home equity that can remain after a move

But a cheaper purchase price does not automatically mean cheaper total homeownership.

Texas property taxes are an important counterweight.

Rent

The latest Census QuickFacts estimates also show a substantial statewide rent difference.

Median gross rent for 2020–2024 was approximately:

• California: $2,036
• Texas: $1,403

That puts the California figure roughly 45% higher.

The figures come from the American Community Survey rather than current asking rents, so they should not be treated as the price of an apartment advertised today. They are valuable because they provide a consistent statewide comparison.

You can review the underlying figures through the U.S. Census Bureau’s California QuickFacts and Texas QuickFacts.

For renters whose salary remains similar after the move, Texas can therefore offer a substantial improvement in the share of income required for housing.

California and Texas Property Taxes Work Very Differently

One of the most common mistakes when evaluating a California-to-Texas move is assuming that lower Texas home prices automatically translate into low property taxes.

They do not.

Tax Foundation’s 2026 state comparison, using 2024 Census data, estimates property taxes paid as a percentage of owner-occupied housing value at:

• California: 0.70%
• Texas: 1.40%

Texas’s statewide effective rate is therefore roughly twice California’s on this measure.

For a California homeowner accustomed to Proposition 13, the difference can be particularly noticeable.

California’s Proposition 13 generally limits the property-tax rate to 1% of assessed value plus certain voter-approved debt and generally limits annual increases in a property’s base-year assessed value to no more than 2%, except when events such as a change in ownership or new construction establish a new base-year value.

The California State Board of Equalization explains the state’s property-tax system in more detail.

Texas property taxes are local and can vary substantially among cities, counties, and school districts. Texas provides homestead exemptions and other forms of property-tax relief, but someone buying in Texas should calculate the expected tax bill for the actual property, not apply a statewide percentage blindly.

This is especially important if you’re using proceeds from an expensive California home to purchase a larger Texas property.

The home may cost much less than the California property you sold while still producing a property tax bill that is larger than you expected.

For a broader comparison of recurring ownership costs, see our Home Insurance vs Property Taxes by State in 2026.

The Income-Tax Difference Is Real, but It Needs Context

Texas does not impose an individual income tax.

California does levy individual income tax using progressive rates.

For Californians who permanently relocate to Texas and earn income that is no longer taxable by California, this can produce meaningful savings.

But moving across the state line does not automatically make every dollar of future income exempt from California tax.

The California Franchise Tax Board’s guidance for part-year residents and nonresidents explains that a part-year resident generally pays California tax on:

• Worldwide income received while a California resident
• California-source income received while a nonresident

If you relocate to Texas and genuinely become a California nonresident, wages for services performed entirely outside California are generally not California-source wages. However, California-source business income, rental income from California property, certain equity compensation, and other situations can create continuing California filing obligations.

Remote workers should pay particular attention to this distinction.

If you retain substantial California ties or frequently perform services inside California, your situation can be more complicated.

For anyone with significant income, a California business, equity compensation, rental property, or uncertain residency status, professional tax advice is appropriate before assuming the move eliminates California tax exposure.

Sales Taxes Are Lower in Texas, but Not Dramatically

Texas does have a sales-tax advantage, but the difference is much smaller than the housing or income-tax differences.

As of July 1, 2026, the Tax Foundation estimates average combined state and local sales tax rates of:

• California: 9.03%
• Texas: 8.20%

California has a 7.25% statewide base rate before local additions, while Texas has a 6.25% state rate and allows local additions.

See the current comparison in Tax Foundation’s 2026 midyear sales-tax data.

Actual sales tax rates vary by location in both states.

The practical conclusion is that sales tax generally favors Texas, but it is not likely to be the deciding financial factor in the move.

Housing and state income tax usually matter much more.

California Median Household Income Is Higher

Texas is cheaper overall, but California’s median household income is also higher.

Census QuickFacts lists 2020–2024 median household income, in 2024 dollars, at:

• California: $99,122
• Texas: $78,476

California’s figure is roughly 26% higher.

That is why comparing living costs without comparing expected earnings can produce a misleading result.

Someone earning $150,000 remotely and keeping the same salary after moving to Texas may experience a major increase in purchasing power.

Someone whose salary falls substantially because the new Texas job pays less may experience a smaller financial improvement.

Before moving, calculate your budget using your expected Texas income, not your current California salary unless you know that salary will continue unchanged.

The more useful comparison is:

After-tax income minus housing and recurring household expenses, not simply California salary compared with Texas prices.

How Much Does Moving From California to Texas Cost?

The cost of physically moving your belongings varies too much for one statewide number to be reliable.

California and Texas are enormous states. A Los Angeles-to-El Paso move is very different from a San Francisco-to-Houston move.

Price also depends on:

• Distance
• Shipment weight or volume
• Number of bedrooms
• Packing services
• Storage
• Stairs or elevators
• Access at the pickup and delivery locations
• Time of year
• Moving date flexibility
• Whether you use a full-service carrier, container, or rental truck

Rather than relying on one online estimate, compare multiple written quotes.

For an interstate move, the Federal Motor Carrier Safety Administration explains the difference between binding and non-binding estimates and the protections consumers should understand when hiring an interstate mover.

FMCSA also recommends confirming whether the company you’re dealing with is a registered mover or a broker.

The one-time moving bill matters, but it should be viewed separately from the ongoing financial effect of your new housing, taxes, insurance, and income.

A one-time difference in moving expenses is temporary. A recurring difference in monthly housing costs can affect your finances every year you remain in the new location.

Don’t Assume Every Texas City Is Cheap

Texas’s statewide average is dramatically less expensive than California’s, but that does not mean every Texas destination offers the same savings.

Austin, Dallas–Fort Worth, Houston, San Antonio, El Paso, and smaller Texas metros each have different:

• Home prices
• Rents
• Property taxes
• Insurance costs
• Commute patterns
• Job markets
• Local sales taxes

The same is true within California.

Someone leaving San Francisco for San Antonio may see an enormous housing-cost reduction.

Someone leaving a less expensive inland California market for an expensive Austin neighborhood may see a much smaller difference.

That is why a proper move analysis should become increasingly specific:

• State: California vs. Texas
• Metro area: California metro vs. Texas metro
• Neighborhood: neighborhood vs. neighborhood
• Individual property: actual property vs. actual property

Our Compare Places and Cities & Metro Areas research are designed around that narrower level of comparison.

What Changes After You Arrive in Texas?

The financial comparison is only one part of relocating.

There are also administrative steps that new Texas residents should plan for.

Register Your Vehicle Within 30 Days

The Texas Department of Motor Vehicles says new Texas residents have 30 days after moving to Texas to register their vehicle.

Requirements can include:

• Proof of insurance
• Vehicle title or out-of-state registration
• Identification
• Applicable emissions inspection in certain counties
• Registration and title paperwork
• Required fees

Texas eliminated its general safety inspection requirement for noncommercial vehicles beginning in 2025, but emissions requirements remain in designated counties.

Transfer Your Driver License Within 90 Days

The Texas Department of Public Safety allows a new resident to drive using a valid, unexpired out-of-state license for up to 90 days after moving.

To obtain a Texas license, you will generally need documentation establishing identity and Texas residency, and vehicle owners should address Texas vehicle registration as part of the process.

Do not leave these administrative tasks until the last week of the deadline. Driver-license appointment availability can vary.

What About Homeowners and Auto Insurance?

Insurance should be quoted before moving rather than estimated based on California premiums.

Texas has substantial exposure to:

• Hail
• Severe thunderstorms
• Tornadoes
• Hurricanes and coastal wind
• Flooding
• Extreme heat

Insurance costs can therefore vary sharply by location.

A Texas house that appears dramatically cheaper than a California house may still have substantial homeowners insurance premiums.

Auto insurance can also change when you move because rates reflect state rules, location, claims patterns, vehicle characteristics, and individual driver factors.

Ask insurers for quotes using your prospective Texas ZIP code before finalizing the household budget.

For broader research on how physical hazards affect housing costs, see our Housing Risk & Resilience hub.

A California-to-Texas Move Can Improve Purchasing Power, but Not Automatically

The strongest financial case for moving from California to Texas usually occurs when several things happen together:

• Your income stays similar
• Your housing expense falls materially
• Your California income tax exposure ends or declines
• Your Texas property tax and insurance costs remain manageable
• You choose a Texas metro that fits your budget

The case becomes weaker when:

• Your salary falls significantly
• You buy much more house simply because Texas homes appear inexpensive
• Property taxes are much higher than expected
• Insurance is expensive at the chosen address
• You retain significant California-source income or residency ties
• Commute or transportation costs rise substantially

In other words, Texas can make it easier to spend less, but it can also make it tempting to buy more. The financial benefit depends on what you do with the difference.

California to Texas Moving Checklist

Before committing to the move, work through these steps:

Before Choosing a Texas City

• Compare your current California metro with the specific Texas metro.
• Estimate your expected Texas salary or confirm that remote compensation will remain unchanged.
• Compare rents or home prices at the neighborhood level.
• Request homeowners or renters insurance estimates.
• Estimate commute and transportation costs.

Before Buying a Texas Home

• Calculate the actual property tax for the property.
• Obtain an insurance quote using the property’s address.
• Check whether flood insurance or other additional coverage may be appropriate.
• Include HOA fees where applicable.
• Compare the complete monthly ownership cost, not just mortgage principal and interest.

Before Leaving California

• Review California residency and part-year tax rules.
• Determine whether you will continue receiving California-source income.
• Update financial, insurance, and employer records as appropriate.
• Obtain multiple written interstate moving estimates.
• Verify the mover or broker through FMCSA.

After Arriving in Texas

• Establish your Texas address.
• Arrange Texas auto insurance where required.
• Register vehicles within the state’s 30-day timeframe.
• Transfer your driver license within the 90-day timeframe.
• Update other accounts and records associated with your residence.

Is Moving From California to Texas Worth It?

For someone whose primary goal is reducing housing and living expenses, Texas has a compelling statewide financial advantage over California.

The official data support that conclusion.

California’s overall price level is materially higher. Its typical home value is more than twice Texas’s. Statewide rent is substantially higher, and California imposes individual income tax while Texas does not.

But there are meaningful tradeoffs.

California’s median household income is higher. Texas has much higher effective property tax rates, and insurance costs can be substantial depending on the property and location.

The correct question is therefore not:

“Will I save money because Texas is cheaper?”

It is:

“How much will my specific household save after adjusting for income, housing, taxes, insurance, and location?”

For many California households, the answer can still favor Texas by a wide margin.

But the calculation should be performed with actual Texas housing and income numbers before the moving truck arrives.

Methodology and Data Sources

This article uses separate datasets for the expenses and migration measures they are designed to track.

Interstate migration: U.S. Census Bureau 2024 State-to-State Migration Flows, based on 2024 American Community Survey estimates and released in January 2026.

Overall price levels: U.S. Bureau of Economic Analysis 2024 Regional Price Parities, released February 2026.

Current home values: Zillow Home Value Index for California and Texas, with data through July 31, 2026.

Household income and rent: U.S. Census Bureau QuickFacts using 2020–2024 American Community Survey estimates.

Property taxes: Tax Foundation’s 2026 state comparison based on 2024 Census data.

Sales taxes: Tax Foundation’s July 2026 state and local sales-tax comparison.

California residency and income-tax rules: California Franchise Tax Board.

Texas vehicle registration: Texas Department of Motor Vehicles.

Texas driver licensing: Texas Department of Public Safety.

Different data series should not be treated as interchangeable. Zillow home values are not the same as Census housing values, statewide effective tax rates cannot predict an individual property tax bill, and statewide averages cannot substitute for city- or neighborhood-level comparisons.

Frequently Asked Questions

Is moving from California to Texas cheaper?

For many households, yes. Texas has a lower overall price level, substantially lower statewide home values, and lower median rent. The amount you personally save depends on your income, Texas destination, housing choice, property taxes, and insurance.

How many Californians moved to Texas?

The U.S. Census Bureau estimates that approximately 77,161 people moved from California to Texas in 2024, making it the largest state-to-state migration route that year.

Are Texas homes really cheaper than California homes?

Yes, at the statewide level. Zillow’s July 2026 Home Value Index reports a typical home value of approximately $773,735 in California and $301,806 in Texas.

Is rent cheaper in Texas than California?

Statewide Census data show substantially lower rent in Texas. Median gross rent for 2020–2024 was $1,403 in Texas compared with $2,036 in California.

Will I stop paying California income tax when I move to Texas?

Not necessarily on every type of income. Once you genuinely become a California nonresident, income earned from services performed entirely outside California is generally not California-source wage income. However, California-source income can remain taxable, and special rules apply to some businesses, investments, and equity compensation. Review your circumstances with a qualified tax professional when necessary.

Does Texas have higher property taxes than California?

Yes, on the statewide effective-rate measure used here. Tax Foundation reports a 1.40% effective rate in Texas versus 0.70% in California using 2024 data. Individual property-tax bills vary substantially by location, assessed value, and exemptions.

How soon do I need a Texas driver’s license?

Texas allows new residents with a valid out-of-state license to drive for up to 90 days after moving. Vehicle registration has a shorter 30-day deadline.

What is the biggest financial advantage of moving from California to Texas?

For many households, it is housing. Texas home values and rents are substantially lower statewide. The lack of individual state income tax can provide additional savings for households whose income is no longer taxable by California.