To Californians, the idea of packing up and heading to Texas is like answering an old beckon from a land that is perceived to have something easier, something more free, and something a whole lot less expensive. The Golden State, with its breathtaking coastlines and unlimited sunshine, has been a dreamland for years, but for many others, that dream has turned into an economic nightmare. Soaring housing costs, exorbitant taxes, and a yearly cost of living raise have sent thousands east in pursuit of cheaper opportunities. In 2021 alone, almost 108,000 individuals took the leap from California to Texas, per the most recent analysis of Census data. This is not a trickle, but a tidal wave of change, remodeling neighborhoods, schools, and whole cities in the Lone Star State.
The main reason for this mass migration is affordability, and that’s simple. People are tired of throwing their hard-earned money into rent or mortgage payments that leave them little more than breath. They see themselves with a home with a yard, space for the kids to run around, and maybe some land of their own. Texas makes that a reality for a fraction of the cost. But however great lower housing cost and no state income tax sound, there is one financial item that catches almost every newcomer off guard: the property tax rate.
- Affordability is the #1 reason Californians are moving to Texas, with housing the biggest concern.
- Nearly 108,000 Californians moved to Texas in 2021, and that figure continues to grow each year.
- Texas has no state income tax, saving big money, especially for high-income individuals.
- Smaller home prices allow consumers to purchase significantly larger or newer homes than they would be able to afford in California.
- Property taxes, which are higher percentagewise, are typically offset by the much lower cost of homes.
Marie Bailey, a realtor who made the move from El Segundo, California, to Prosper, Texas, in 2017, has seen this reaction up close. She’s a popular source of advice for Californians making the same move. “The rate of property taxes is higher,” she tells each client bluntly. It’s not an afterthought in the conversation it’s one she mentions early. To some, it’s when the rosy glasses are removed. It is not statistics on a spreadsheet. It is individuals making life-altering decisions. Families are leaving behind older beaches and friends of a lifetime for promise of financial breathing space. And the appeal of Texas is strong, but the reality of property taxes is a wake-up call that will not be dismissed.
The Property Tax Shock: What Californians Don’t See Coming
California and Texas are heading towards property taxes in radically different manners, and that’s the essence of the surprise most migrants get. In California, Proposition 13 has been the cornerstone of homeownership protection since 1978. It caps property taxes at 1% of a home’s value as assessed and places limits on annual raises, with an average effective rate of about 0.75%. There have been decades with this system in effect, holding payments constant and relatively low even as the prices of houses have soared. Californians have learned to assume this format it’s part of the financial DNA of Golden State homeownership.
Texas does not have a state personal income tax. That means the state has to rely on property taxes to fund schools, roads, police, and fire departments. The result? One of the country’s highest effective rates of property tax: a 1.74% average rate. Marie Bailey examines rates in her neighborhood of 1.6% to 2.7%, depending on the county and local estimates. For a homeowner moving from a $700,000 home in California to a $350,000 home in Texas, the lower sticker price is thrilling until they see the tab.
- California’s Proposition 13 caps property tax increases, maintaining payments constant in the long term.
- Texas has no state income tax, so property taxes finance most local services.
- Texas average property tax rate is 1.74%, over twice California’s effective rate.
- Local government tax rates vary widely by county, city, and school district in Texas.
- Appreciation in home value will increase your tax bill even if you don’t sell.
Charles Denson, a tax expert with Gill, Denson & Company, explains that property taxes in Texas are tied to appraised values, which can rise even if you’re not selling your home. If neighboring properties sell for higher prices, your home’s assessed value can increase, and so does your tax bill. This dynamic has become more pronounced with the influx of new residents driving up demand and home values. It’s easy to get caught up in sticker shock, but the full picture financially presents a more balanced picture. Sure, the rate does come up higher. But the overall dollar cost of paying taxes can still be less or at least equal when you factor in the gigantic disparity in home prices.
No State Income Tax, Lower House Prices: The Actual Financial Gain
Texas’s lack of a state income tax is more than just an account line item it’s a game-changer. In California, above-average incomes pay a state income tax rate of more than 12% in addition to federal taxes. For a family with a $150,000 salary, that’s thousands of dollars lost from their paycheck every month. In Texas, that money stays in their pocket. Chuck and Jennifer Balek, who moved from Camarillo, California, to Rockwall, Texas, in 2021, could feel it immediately. Chuck said it was “like a 10% raise for both of us.” Jennifer added, “We’re not really paying more than we did in California because the house price is so much less.”
Zillow data makes this true: the median value of a home in Texas is $298,424, and in California, $746,473. That is over $448,000. Even when Texas pays a larger tax bill, the arithmetic generally works in Texas’s favor. A $300,000 home at 1.8% is $5,400 per year in property taxes. A $750,000 home in California at 0.75% is $5,625. The figures are close and that does not even include the income tax advantage.
- No state income tax translates into thousands more in take-home pay annually.
- Houses in Texas are 63% lower than California houses on average.
- Renters save up to 32% when moving from costly California areas.
- Less sales tax and utility bills also reduce monthly payments.
- Homeownership is affordable for many who would have been unable to afford it in California.
Janelle Crossan, a single mom who relocated from Costa Mesa to New Braunfels in 2020, puts it best: “I could never afford a house in California property tax or not, it’s a non-issue for me.” For the first time, she’s a homeowner. The reduced sales tax, lower grocery bills, and more moderate daily expenses are just icing on the cake. The economic liberty isn’t theoretical it’s revolutionary. Families are upgrading to bigger homes, retiring mortgages, saving for school, or just living on a less anxious budget. The property tax rate might be greater, but all in all, the cost of living has Texas towering above for most.
Texas Steps Up: Proposition 4 and Property Tax Relief
Not that it’s suddenly a new issue for newcomers only natives have grumbled about the burden for decades. As property values and residents grow, local governments have faced growing pressure to take action. That pressure paid off big in November when Texas voters passed Proposition 4, a $12.7 billion property tax relief bond program. This wasn’t some modest tweak it was an ambitious effort to reduce the burden on homeowners across the state.
The package does include billions of school district funding, which will cut property tax rates directly. But the real game-changer for residents is increasing the homestead exemption to $100,000 from $40,000. That means the first $100,000 of your property’s worth is exempt from school district taxes the largest portion of most property tax bills. On a $350,000 home, that is a large decrease in taxable worth.
- Proposition 4 passed strongly with voters’ approval, reflecting wide-spread demand for relief.
- Billions spent on schools to reduce dependence on property taxes.
- Homestead exemption increased to $100,000, lowering taxes on primary homes.
- Tax bills immediately reduced for millions of Texas homeowners.
- Unwavering emphasis on affordability as population and housing values rise.
This forward-looking legislation of this kind shows that Texas is listening. Politicians and voters know that keeping the state affordable is key to its continued growth and desirability. For Californians considering an exodus, this is good news it’s not just a question of tomorrow’s tax bill, but about a state committed to holding the line on costs in the long term. This is not a Band-Aid solution that will last only briefly. Texas has established a history of fine-tuning tax policies to weigh growth and livability. For newcomers, it’s a word that the state is changing and that the fiscal advantages of being here are most likely to last.
More Than Money: The Texas Lifestyle Awaits
The decision to move isn’t always about dollars and sense. It’s a matter of space, neighborhood, and another pace of living. StorageCafe’s 2023 report shows that California-to-Texas movers are largely high-income millennials (31%), followed by Gen Z (20%) and Gen X (15%). They’re people who are able to work from home in most cases, and they’re relocating to Texas for “more space and financial freedom.” They’re getting an extra 1,000 square feet in their new homes space for home offices, playrooms, or extra bedrooms that were out of reach in California.
Some of the most sought-after destinations to relocate include Dallas, Fort Worth, Austin, Houston, and San Antonio. Tarrant and Dallas counties are among the leading relocation spots, with Travis, Harris, and Bexar counties close on their heels. These aren’t cities these are prosperous, growing hubs of work, culture, and air.
One of the first things outsiders observe is the friendliness of the people. Southern hospitality is no legend its a way of life. Strangers wave, clerks inquire about your day, and neighbors bring over cookies. It’s a very welcome change from more reserved interactions many had grown accustomed to back in California. This warm kindness makes the adjustment go down more smoothly and allows new residents to acclimate quicker.
- Millennials lead the migration, seeking space and remote work possibilities.
- Dallas and Fort Worth are favorite targets, with healthy employment markets and affordability.
- There truly is Southern hospitality friendly interactions are a daily norm.
- Newcomers gain huge square footage, often 1,000+ extra feet.
Neighborhood get-togethers and acts of kindness welcome transplants. From barbecue to Tex-Mex, the food is a revelation. Football Fridays light up high schools, and rodeos celebrate Texas’s cowboy heritage. The state fair is a month-long carnival of fried goodies, livestock, and fun. And yes everything really is bigger in Texas, including portions and the sky.
The Full Financial Picture: Savings Outside the Home
Affordability in Texas goes far deeper than housing. Redfin reported that through July 2025, the median price of homes in the state was about $828,900 and for Texas, almost $352,700. That’s nearly half a million dollars less. Those who are moving from Orange County or the Bay Area to Harris County can lower their rent by as much as 52%. Food, gas, and bills are cheaper as well. California’s electricity is 35 cents per kilowatt-hour, and that of Texas is roughly 15.5 cents. Even with heavy utilization of air conditioning in summer, the savings add up.
- Median home price difference is over $476,000 between California and Texas.
- Renters can save up to 52% moving to comparable Texas metros.
- Power is 56% cheaper in Texas than in California.
- Gas and groceries are cheaper, making weekly budgets a cinch.
- Overall cost of living is closer to the national average in Texas.
Health care does require some planning premiums and networks vary but employer plans and exchange plans are available. The belief that Californians are the only reason for rising costs in Texas is a myth. Growth originates from all over the country, and economic expansion in tech, health care, and education drives demand. Housing supply, interest rates, and construction costs have much more impact than any one population of movers.
Daily life in Texas is simply more affordable. From dinner at a restaurant to car insurance, the lower cost of living adds up to more money for vacations, entertainment, or saving. It’s not just about surviving it’s about thriving. For others, the move isn’t just an economic increase it’s a lifestyle increase. The numbers tell one story, but lived experience tells another.
Planning Your Move: Practical Tips for a Smooth Transition
It’s a major move from Texas to California, so planning is key. Start with at least three written quotes from actual carriers, not brokers. Review insurance, ask about valuation coverage, and have fragile items treated gently. Reserve overlapping housing dates or self-storage to avoid last-minute choices. Set aside a contingency fund for tips, parking tickets, or unexpected delays.
- Get quotes from carriers, not brokers, and check on authority and insurance.
- Arrange housing overlap or storage to ease stress during the move.
- Re-quote all insurance with your new Texas address.
- Track utility and internet transfers to prevent double billing.
- Have key records in hand to save time during enrollment and registration.
Pre-update utilities, internet, and mailbox services to avoid double charges. Re-quote auto insurance with your new Texas address rates can differ significantly. Gather medical, school, and vehicle records all in one package for streamlined enrollment and registration. If your employer offers relocation assistance, save receipts for reimbursement.
The logistics matter, but attitude does as well. This isn’t a move this is a new beginning. Texas welcomes newcomers, but it’s wise to plan ahead. With advance planning, the move can be seamless and stress-free. Texas is waiting for you.
Conclusion: Texas Isn’t a Move It’s a New Start
The journey from Texas to California is not just about escaping high costs. It’s about having more elbow room, more cash in the wallet, and more neighbors. The shock of rising property taxes is real, but it’s also part of a larger narrative. No state income tax, lower house prices, and tax-cutting policies in full frontal assault create a fiscal agenda that’s hard to beat.
But the enchantment is in the everyday moments the waving neighbor, the barbecue shack that’s your Friday night ritual, the high school football game that unites the town. Texas is a sense of place, a place to be proud of, and a scale of life that’s big in every dimension.
For the courageous who look beyond the shock value, Texas is not a location it’s a fresh start. It’s a destination where home ownership is not just a dream, where dollars stretch, and where life is bigger, braver, and more spacious. The Lone Star State may not be perfect, but to Californians in numbers, it’s home.
