California vs Texas: Tax & Cost Comparison
2026Side-by-side California vs Texas comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. The most common cross-state relocation in U.S. data — comparing California's 14.4% top income tax + 7.25% sales tax against Texas's no-income-tax / property-tax-heavy structure.
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
| Tax / Cost Factor | California | Texas |
|---|---|---|
| State income tax (top rate) | 13.30% (progressive) | None |
| State sales tax | 7.25% | 6.25% |
| Avg. effective property tax | 0.71% | 1.68% |
| Minimum wage (2026) | $16.90/hr | $7.25/hr |
| State Disability Insurance (SDI) | Yes (1.2%) | No |
| Paid Family Leave | Yes | No |
| Median home price (Q4 2025) | $770,000 | $360,000 |
| Foreclosure type | non-judicial | non-judicial |
| BEA Regional Price Parity (2024) | 113.7 | 92.6 |
| Median household income (2024) | $96,340 | $73,370 |
| Median 2-bedroom rent (Q4 2025) | $2,540/mo | $1,660/mo |
Worked example: $75,000 single filer, 2026
For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:
- California: estimated state income tax ≈ $6,983, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 7.25% on consumption.
- Texas: estimated state income tax $0 (no state income tax), plus federal $7,300, FICA $5,738, sales tax 6.25% on consumption.
Property tax depends entirely on home value. On a $400,000 home: California ≈ $$2,840/year; Texas ≈ $$6,720/year.
Why this comparison? The most common cross-state relocation in U.S. data — comparing California's 14.4% top income tax + 7.25% sales tax against Texas's no-income-tax / property-tax-heavy structure.
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Frequently asked questions
Which is cheaper to live in: California or Texas?
By BEA Regional Price Parity (2024), California has a cost-of-living index of 113.7 and Texas is 92.6 (US average = 100). Median household income: California $96,340, Texas $73,370. Median 2-bedroom rent: California $2,540/mo, Texas $1,660/mo. Texas is the lower-cost state by this measure.
Does California or Texas have lower income tax in 2026?
Texas has no state income tax; California has a top rate of 13.30%. Texas is the clearly lower-income-tax state.
What about property taxes in California vs Texas?
California's average effective property tax rate is 0.71% (e.g., $2,840/year on a $400,000 home). Texas's rate is 1.68% ($6,720/year on $400K). California has the lower property tax burden.
Where is the minimum wage higher: California or Texas?
California's 2026 minimum wage is $16.50/hour; Texas's is $7.25/hour. California is higher.