Moving from California to Texas: the real cost & tax math
California's top marginal income tax hits 13.3%. Texas is 0%. But rent, salary compression, and moving costs decide whether the move actually pays off. We compare Los Angeles and Austin using live City Intelligence data.
Los Angeles, CA
Austin, TX
Side-by-side: Los Angeles vs Austin
| Metric | Los Angeles, CA | Austin, TX | Difference |
|---|---|---|---|
| Median rent (monthly) | $2,550 | $1,700 | +$850 |
| Median home price | $895K | $545K | +$350K |
| Median salary | $82,000 | $92,000 | -$10,000 |
| Effective tax rate | 0.274% | 0.225% | +0.049000000000000016% |
| Mortgage burden | 51.3% | 32.1% | +19.199999999999996% |
| Childcare (monthly) | $1,700 | $1,450 | +$250 |
| School quality (0–10) | 74 | 82 | -8 |
| Overall score | 64 | 88 | -24 |
California charges 1%–13.3% state income tax on top of federal. Texas charges zero. On a $180k W-2, that's roughly $12k–$18k a year back in your pocket. Texas offsets some of it via higher property tax (~1.6–2.2% of home value), so homeowners feel less of the gap than renters.
Austin's median rent is roughly 50% lower than LA's, saving a renter around $10,200/year. Home prices are dramatically lower in Austin, but property tax narrows the annual gap. Run the mortgage-plus-tax math, not just the sticker price.
Most Texas offers land 10–20% below California comps for the same role — especially in tech. If you're keeping a remote California salary, the move is a clear win. If you're job-searching locally, model the lower base against tax savings before you sign the lease.
A long-distance household move from LA to Austin runs $4,000–$9,000 with movers, plus $1,500–$3,000 to ship a car. Budget for a first-and-last month deposit and 30–60 days of overlap rent. FuturePath's simulator amortizes these against your first-year savings.
You trade coastal weather and ocean access for hotter summers, live music, and a lower cost of eating out. Austin traffic is real but shorter than LA's. Healthcare networks and public schools vary sharply by neighborhood — pick a zip code before signing.
Austin scores 84 vs LA's 66 on family well-being in our index. Childcare is 17% cheaper in Austin, and grocery + utilities are meaningfully lower. Space per dollar is the biggest tangible upgrade families report.
Should you actually move?
The California-to-Texas move usually pencils out for high earners keeping a remote California salary, and for families trading coastal rent for suburban space. It stops working if you take a 20%+ pay cut to move, or if you buy at the top of the Austin market and get hit by property tax and insurance you didn't budget for.
- • Best case: keep your remote CA salary, rent for year one, save the tax delta.
- • Watch out for: property tax on a new Austin home offsetting income tax savings.
- • Job-search locally? Model the lower Texas base before signing anything.
- • Don't forget one-time costs: movers, car shipping, deposits, overlap rent.
Model your California → Texas move
Plug in your salary, savings, and household. FuturePath simulates after-tax pay, housing, and one-time moving costs so you see the real first-year impact.