Tax Rate Comparison
| Tax Type | California | Texas |
|---|---|---|
| Income Tax | 1%-12.3% (9 brackets) + 1% surcharge over $1M | None (0%) |
| Sales Tax | 7.25% (avg ~8.68%) | 6.25% (avg ~8.2%) |
| Property Tax | 0.71% | 1.68% |
| Estate Tax | None | None |
| Corporate Tax | 8.84% | Franchise tax (0.375%-0.75%) |
Income Tax at Different Levels
| Income | California | Texas | Winner | Annual Savings |
|---|---|---|---|---|
| $50,000 | $1,700 | $0 | California | $1,700 |
| $100,000 | $5,400 | $0 | California | $5,400 |
| $200,000 | $14,200 | $0 | California | $14,200 |
Who Should Live in California?
Tech workers, families valuing CA schools/universities, coastal lifestyle lovers
Who Should Live in Texas?
High earners, business owners, retirees, remote workers prioritizing take-home pay
Frequently Asked Questions
How much can I save moving from California to Texas?
At $200K income, ~$14,200/year in state income tax. TX property taxes are higher though.
Is cost of living lower in Texas?
Yes. Median home price is roughly $290K vs $735K in California.