California vs Texas

California vs Texas: the income tax goes, the property tax stays

Utilities and rents carry the gap. California's utilities parity is 71.387 points above Texas's and its rent parity 57.843 points above; goods differ by 8.015 points and other services by 5.510. The index supports testing a Texas budget, but it is not a promise that every Texas city costs less than every California city.

The tax trade is the part most movers underestimate. Texas has no individual income tax, and California's supplied 46.8% of its fiscal 2025 state collections, $3,270 per resident. Texas instead relies on general sales (62.8%) and leaves property tax to local governments, so ownership costs stay high: the median real estate tax paid is $4,232 in Texas against $5,124 in California, on a median home worth $283,800 rather than $734,700. If you are buying in Texas, ask for the anticipated assessment and the actual insurance contract; a historical median tax amount is neither a statutory rate nor a forecast of the bill on a new purchase.

Ownership is still far cheaper in Texas overall: owners with a mortgage report median monthly costs of $2,106 against $2,946, an $840 difference. Renters face a two-bedroom median of $1,395 against $2,103 and spend 30.9% of income on gross rent against 32.8%.

Incomes narrow the picture. California's income lead shrinks from $20,646 at the household median to $4,809 per person once prices are counted. Per resident, California's state government collects more than twice as much as Texas's. The Texas profile explains the Texas sales and property tax rules in more detail.