Is Moving from California to Austin Worth It in 2026?

World-Class Retail

The Domain and Music Lane

Trade Rodeo Drive for The Domain NORTHSIDE. From Louis Vuitton to Gucci, enjoy an open-air luxury shopping experience.

Culinary Excellence

Uchi and Jeffrey's

Austin is a food capital. From James Beard award-winning sushi to classic premium steakhouses, your palate is safe here.

Water and Wellness

Lake Austin and Hill Country

Trade the Pacific for the pristine waters of Lake Austin. Private boat docks and paddleboarding at sunrise await.

For most middle and high-income earners, yes. Texas has no state income tax versus California's rate of up to 13.3%. At $150,000 income, that is approximately $14,000 per year in additional take-home pay. After accounting for Texas's higher property taxes (roughly $6,000 to $8,000 more per year for homeowners), the net advantage is $6,000 to $8,000 per year at $150K and $15,000 to $50,000 per year for higher earners. Most California transplants save between $15,000 and $40,000 annually. Renters at most income levels above $80,000 capture nearly the full income tax savings.¹

Over 150,000 Californians moved to Texas in 2025, making California to Texas the largest interstate migration corridor in the United States. California accounts for approximately 14% of all out of state movers to Texas. Los Angeles County is the single largest source, followed by the Bay Area. Gen X and millennials make up approximately 75% of those making the move.^2,3

West Austin communities tend to feel most natural for California transplants: West Lake Hills, Barton Creek, Lake Austin, and Rollingwood. These neighborhoods offer private lot sizes, top-rated Eanes ISD schools, and proximity to water and nature that mirror Southern California's most prestigious suburbs. For buyers who want waterfront access similar to coastal California living, Lake Austin is the closest equivalent with constant-level water and private boat docks. For value-focused buyers wanting large lots near downtown, Rollingwood is a strong choice.

Austin is approximately 21% cheaper than Los Angeles overall. The biggest savings come from housing and the elimination of state income tax. Austin's metro median home price is currently $415,000 to $445,000 versus LA's $850,000 and above. Rents are down roughly 20% from Austin's 2022 peak with landlords offering 6 to 12 weeks of free concessions in many buildings. Groceries and dining are roughly comparable between the two cities.^2,3

Yes, and it is significantly higher than California's. Texas property tax rates average approximately 1.8 to 2.2% of assessed home value per year, compared to California's rate of approximately 0.76% under Proposition 13. On a $1M home that is roughly $12,000 to $15,000 more per year in Texas than California. However, for most income earners the state income tax savings still outweigh the property tax difference. Texas homeowners can file for the homestead exemption after closing, which reduces the taxable assessed value and caps annual increases at 10%.

California's Franchise Tax Board aggressively audits high-income earners who leave the state. If you keep a California mailing address, maintain California bank accounts, or work remotely for a California employer, the FTB may claim you still owe full-year California income tax. To establish a clean Texas domicile, update your driver's license, voter registration, and bank accounts to a Texas address on the same date as your move. File a part-year resident return (Form 540NR) for the partial year you lived in California. Consulting a CPA familiar with CA departure audits is strongly recommended for income above $300,000.⁴