California vs Texas: Tax & Cost of Living Comparison
A comprehensive side-by-side comparison of taxes, cost of living, housing, income, and insurance costs between California and Texas.
State 1
California
CA
State 2
Texas
TX
No Income Tax State
Texas has no state income tax, which can mean significant savings for residents compared to California (13.30% top rate).
| Category | California | Texas |
|---|---|---|
| Income Tax Rate | 13.30% | No Income TaxBetter |
| Property Tax Rate | 0.71%Better | 1.68% |
| Property Tax (on Median Home) | $5,325/yr | $5,040/yrBetter |
| Sales Tax Rate | 7.25% | 6.25%Better |
| Cost of Living Index | 140 | 93Better |
| Median Home Price | $750,000 | $300,000Better |
| Median Household Income | $85,300Better | $67,700 |
| Avg. Auto Insurance | $2,200/yr | $2,100/yrBetter |
| Avg. Home Insurance | $1,500/yrBetter | $2,700/yr |
Cost of Living Comparison
Index relative to national average (100)
Median Home Price
California
$750,000
Property Tax: $5,325/yr
Texas
$300,000
Property Tax: $5,040/yr
California homes are +150.0% more expensive than Texas homes.
Median Household Income
California
$85,300
Texas
$67,700
California households earn $17,600 more per year on average.
Insurance Costs
| Type | California | Texas | Difference |
|---|---|---|---|
| Auto Insurance | $2,200/yr | $2,100/yr | $100/yr |
| Home Insurance | $1,500/yr | $2,700/yr | $1,200/yr |
| Total Insurance | $3,700/yr | $4,800/yr | $1,100/yr |
Overall Financial Comparison
Weighted score combining income tax, property tax, sales tax, cost of living, housing, insurance, and income. A lower score indicates better overall financial affordability.
California
150.3
Texas
23.8
More Affordable
The Bottom Line
California offers lower property tax, higher median income compared to Texas. Meanwhile, Texas offers lower income tax, lower sales tax, lower cost of living, more affordable housing. Overall, Texas edges ahead in our weighted financial comparison.
California Advantages
- +Lower property tax
- +Higher median income
Texas Advantages
- +Lower income tax
- +Lower sales tax
- +Lower cost of living
- +More affordable housing