Moving From California to Texas: Taxes and Costs Compared, 2026

How do taxes change when moving from California to Texas?

Moving from California to Texas takes state income tax on wages from USD 18,861 to USD 0 for a single earner on USD 250,000 in 2026, on Mirabello's computation from California's official schedule, and the same move takes a family on USD 250,000 from USD 13,490 to USD 0.

The scope of those figures matters: wages only, standard deduction, no itemising, no local tax, no refundable credits; the family profile is married filing jointly, one earner, two children aged 10 and 8. They are computed by Mirabello for 2026 and are not a personal assessment. This article is general information and not tax advice, so confirm your position with the California Franchise Tax Board or a qualified US tax adviser.

The gap widens quickly with income because California is graduated, with a top rate of 13.3% that starts at USD 1,000,000 of income for a single filer, while Texas has no individual income tax. A single earner on USD 1,000,000 moves from USD 102,459 to USD 0. Family profiles sit lower at each level you can compare directly, USD 87,401 against USD 102,459 at USD 1,000,000, because joint filing changes the schedule. All eight rows, and the rest of the data, are on our California to Texas comparison and in the USA relocation guide.

Does Texas tax capital gains after moving from California?

Texas does not tax capital gains, because it has no individual income tax, whereas California in 2026 has no lower rate for capital gains and taxes all of them as ordinary income, up to the same 13.3% top rate, which is the difference to examine if you expect a large sale.

The Franchise Tax Board explains the California treatment and the Texas Constitution, Article VIII, section 26 is the source for the Texas position. Timing therefore carries weight: which state you are resident in when a gain is realised, and whether the gain has a California source regardless of where you live by then. That second question belongs with your adviser, not with a table, and we do not publish a figure for it because it turns on the asset.

Is property tax higher in Texas than in California?

Property tax is higher in Texas as a rate, at an effective 1.32% against 0.72% in California, a difference of 0.6 percentage points, but the median annual bill is lower, at USD 4,205 against USD 5,537, because the median Texas home is valued at USD 318,100 against USD 770,700 (American Community Survey 2025).

That is the honest counterpoint to the income tax table. Property tax is the main annual charge that moves in the other direction, and the rate applies to whatever you actually buy. If you buy a Texas home at a price close to the California median, the 1.32% rate would apply to a much larger value than the Texas median shown here, so the median comparison would no longer describe your position. Both rates are derived from statewide medians in the American Community Survey 2025, and your own bill will follow the county, the school district and the assessed value.

What else costs less or more when moving from California to Texas?

Moving from California to Texas changes more than tax, with median gross rent going from USD 2,160 to USD 1,515 a month (American Community Survey 2025) and the state sales tax rate from 7.25% to 6.25%, while local sales taxes, which we do not model, come on top in both states.

The median rent difference is USD 645 a month and the median home value difference is USD 452,600. The all-items price index goes from 110.7 to 97.1, and the housing index from 154.3 to 96.5 (Bureau of Economic Analysis Regional Price Parities 2024). Residential electricity is 16.55 US cents per kWh lower in Texas (Energy Information Administration, year to date through August 2026), though total bills depend on how much you use. Sales tax details are published by the California CDTFA and the Texas Comptroller. Our article on cost of living by US state sets both in national context.

What changes for a family moving from California to Texas?

A family moving from California to Texas sees infant centre childcare go from USD 20,039 to USD 10,078 a year (Department of Labor, 2023) and school spending per pupil from USD 13,841 to USD 11,049 (2020-21), with the share of residents without health insurance going from 6.1% to 16.5% (American Community Survey 2025).

Read these as context for questions, not as judgements on either state. Spending per pupil is an input and says nothing on its own about a particular school, which is why you should look at the district you are moving to. The uninsured share describes the whole population, so what counts for you is the cover you arrange, and the Marketplace premium, USD 737 against USD 709 a month (Centers for Medicare & Medicaid Services 2026 open enrolment file), is only one reference point. Childcare figures come from the US Department of Labor National Database of Childcare Prices, 2023, and school spending from the National Center for Education Statistics, 2020-21. The mean commute changes little, at 29.8 minutes against 27.8, so travel time is unlikely to weigh much at state level.

When do you stop being a California resident for tax after moving to Texas?

California treats you as a resident for tax if you are present for other than a temporary or transitory purpose, or domiciled there but away temporarily, and anyone spending more than nine months of the tax year in California is presumed resident, so moving to Texas does not end residency by itself.

The test is about facts, which means your move should be documented as a real change. The Franchise Tax Board residency page cites California Revenue and Taxation Code section 17016, and it is the place to start. Keeping a California home, family base or working pattern does not automatically decide the question, but each is relevant to it. Our guide to US state tax residency rules compares the tests across states, and our overview of states with no income tax shows Texas beside the other eight.

Do California and Texas tax estates or inheritances?

Neither California nor Texas levies an inheritance tax in our data, and Texas also shows no state estate tax, while we make no statement here on estate tax in California, because the official texts we read do not settle it to our standard and we publish only what they do.

Federal estate rules apply in either state and are outside this article. For the state layer across the country, see our guide to US state estate and inheritance taxes.

If you are moving to the United States rather than within it

Readers arriving from abroad face the immigration question first. Our USA immigration overview covers the routes, this guide looks at the state choice on a green card, our note on the US golden visa question clears up the terminology, and our golden visa programme overview covers residency routes elsewhere. Readers from Germany, Switzerland and Austria should see US taxes after moving. If you would like to check how these numbers apply to your own plan, you can speak with our team or start with Mira, by Mirabello, our AI guide. How we compute every figure is on our methodology page.