California vs Texas at a glance
The table puts the two states on the same measures. Home values and rents are Zillow's figures for September 2026. Property tax rates are the Tax Foundation's effective rates for 2024 (median tax paid divided by median home value, from Census survey data), shown for the largest counties because neither state has one statewide rate.
| Measure | California | Texas |
|---|---|---|
| Zillow typical home value, Sept 2026 | $761,538 | $296,424 |
| One-year change | +0.6% | -1.4% |
| Ten-year change | +72.0% | +61.1% |
| State income tax | 1% to 13.3% (top rate includes the 1% surcharge over $1 million) | None |
| State sales tax | 7.25% base plus district taxes | 6.25% plus up to 2% local (8.25% cap) |
| Effective property tax rate, big counties (2024) | 0.67% (Los Angeles, San Diego), 0.76% (Sacramento) | 1.50% (Harris), 1.45% (Dallas), 1.31% (Travis), 1.55% (Bexar) |
| Average homeowners premium, 2022 (NAIC) | $1,492 | $2,397 |
| Unemployment rate, Sept 2026 | 5.1% | 4.4% |
The short version: Texas homes cost far less to buy, and there is no state income tax, but the yearly property tax bill and insurance premium take a bigger share of the home's value. Which state comes out cheaper for you depends on your income, the price of the home you would buy and how long you would hold it.
California vs Texas, factor by factor
Home prices: California vs Texas
Zillow's typical California home value was $761,538 in September 2026, about 2.6 times the Texas figure of $296,424. Texas values have slipped from their peak of $315,707 in August 2022 and were down 1.4% over the year. California's figure is 2.1% below its January 2025 peak of $777,695 and was up 0.6% over the year.
The gap holds at city level. Zillow's typical value was $927,891 in Los Angeles and $980,490 in San Diego, against $491,960 in Austin, $303,442 in Dallas, $259,465 in Houston and $244,623 in San Antonio. Austin is the outlier in Texas: its typical value was 15.2% lower than five years earlier, so recent buyers there have seen prices fall.
Mortgage payment: California vs Texas
At Freddie Mac's 30-year average of 7.24% for the week of October 29, 2026, a 20% down payment on the California typical value leaves a $609,230 loan and principal and interest of about $4,152 a month. The same terms on the Texas typical value give a $237,139 loan and about $1,616 a month. That $2,536 monthly difference is the main reason buyers move.
Rent: Los Angeles and San Diego vs Texas metros
Zillow's observed rent was $2,772 in Los Angeles, $3,004 in San Diego and $2,045 in Sacramento in September 2026. In Texas it was $1,604 in Dallas, $1,571 in Austin, $1,544 in Houston and $1,381 in San Antonio. Austin rents were 4.6% lower than five years earlier, which suits renters who want to try the city before buying.
Property tax: why the Texas bill is higher
California caps the base rate at 1% of assessed value plus voter-approved bonds, and Proposition 13 generally limits increases in assessed value to 2% a year until the home sells. Texas has no state property tax, but counties, cities and school districts each levy their own, so combined rates are higher. The Tax Foundation's 2024 data put the median tax paid at $7,727 in Travis County (Austin), $4,798 in Dallas County and $4,489 in Harris County (Houston), against $5,675 in Los Angeles County on far more expensive homes. Our California property tax guide covers bills by county.
Texas homestead exemption and the 10% cap
Texas school districts must exempt $140,000 of a residence homestead's value, so a $300,000 home pays school taxes as if it were worth $160,000. Other taxing units can add a local exemption of up to 20%. Once the homestead exemption is in place, the appraised value of the home can rise no more than 10% a year. File with the county appraisal district; the general deadline is before May 1. California's version, the homeowners' exemption, takes only $7,000 off the assessed value.
Income tax: what a California household keeps
Texas has no personal income tax. California's rates run from 1% to 12.3%, with a further 1% mental health services tax on income over $1 million, which makes the top rate 13.3%. A household earning a salary in Texas keeps the whole amount California would have taxed. Retirement income, investment income and remote-work pay all count, so run your own figures with a tax preparer before you decide.
Sales tax: California vs Texas
Texas charges 6.25% statewide, and local jurisdictions can add up to 2% for a maximum combined rate of 8.25%. California's base rate is 7.25%, and district taxes of 0.10% to 2.00% push many cities higher: the rate was 10.25% in the City of Los Angeles and 7.75% in the City of San Diego from October 1, 2026. Day to day, Texas is usually a little cheaper at the register.
Home insurance: hail, wind and wildfire
The NAIC's 2022 figures, published by the Insurance Information Institute, put the average homeowners premium (HO-3 policy) at $2,397 in Texas, third highest in the country, against $1,492 in California and $1,569 nationally. Texas risk comes from hail, wind and Gulf hurricanes; California's comes from wildfire and earthquake, which standard policies do not cover. In fire-prone parts of California, ask early whether a standard insurer will write the policy at all, and get quotes before you choose a home in either state. See our California homeowners insurance guide.
Jobs and the labor market
The Bureau of Labor Statistics put the September 2026 unemployment rate at 4.4% in Texas and 5.1% in California, both preliminary figures. Pay levels differ too, so compare a real job offer in each state, net of income tax and housing, rather than a headline salary.
Climate and weather risk
Coastal California has mild, dry summers; most of Texas has long, humid summers, and the Gulf Coast is exposed to hurricanes and flooding. Check FEMA's flood map for any Texas address and CAL FIRE's hazard zone map for any California one before you make an offer.
How many people move between California and Texas
Texas is the top destination for people leaving California. The Census Bureau's 2024 American Community Survey counted about 77,161 people who lived in California a year earlier and lived in Texas at the time of the survey. About 45,447 people moved the other way, from Texas to California. Texas is also the largest source of domestic movers into California. These are survey estimates with margins of error of roughly 9,000 and 6,600 people.
The state table does not say which Texas cities movers chose, so compare the metros on their own numbers: the city values and rents above differ by almost half between Austin and San Antonio. Read our guide to moving out of California for the steps on the California side.
Selling a California home before you move
Capital gains on the California sale
If you owned and lived in the home for at least two of the last five years, you can exclude up to $250,000 of gain from federal tax, or $500,000 on a joint return. California follows the same exclusion, but it taxes any gain above it as ordinary income at state rates. See capital gains tax on a California home sale.
Prop 13 and Prop 19 benefits stay in California
Your low Proposition 13 assessed value does not move with you. Proposition 19 lets owners 55 or older, or severely disabled, carry a base year value to a replacement home, but only to a home in California. Leaving the state means paying Texas rates on a current appraisal. Our Prop 19 guide explains the rules.
Timing the sale and the purchase
Ask your escrow officer whether California real estate withholding applies to your sale, and whether your residency date affects it. Plan the Texas purchase around the May 1 homestead filing deadline so the exemption starts the following tax year. Our guide to selling a house in California covers disclosures, costs and timelines.
Checklist: deciding between California and Texas
- Price two real homes, one in each state, and compare the full monthly cost: mortgage, property tax, insurance and any HOA or municipal utility district charges.
- Ask the Texas appraisal district for the current tax rates for the exact address, including school and utility districts.
- Get insurance quotes for both homes before you write an offer.
- Compare job offers after income tax, not before.
- Work out what you give up in California: your Prop 13 base, nearby family and any Prop 19 transfer you might use later.
- Get your Texas driver license within 90 days of moving; the Department of Public Safety allows that long on an out-of-state license.
- Read our cost of living in California guide and compare it with your Texas budget line by line.