Moving from California to Texas has become one of the most common interstate relocations in the United States. Whether you’re leaving Los Angeles, San Francisco, San Diego, or Sacramento, thousands of Californians each year are choosing Texas for lower living costs, job opportunities, and a different pace of life.
But relocating across state lines isn’t just about packing boxes. It involves financial planning, legal updates, lifestyle adjustments, and understanding what truly changes when you move.
As a U.S.-based relocation expert, this guide will walk you through everything you need to know about moving from California to Texas — including the cost of living in Texas, taxes, housing, jobs, weather, and a practical moving to Texas checklist.
Why People Are Moving to Texas
Several major factors drive Californians to relocate to Texas:
- Lower Cost of Living
One of the biggest motivations is affordability. Compared to cities like Los Angeles or San Francisco, most Texas cities offer significantly lower housing prices and overall living expenses.
- No State Income Tax
Texas does not have a state income tax. For high earners in California, this can represent substantial annual savings.
- Business-Friendly Environment
Texas is known for its pro-business policies. Many companies have relocated headquarters or expanded operations to cities like Austin, Dallas, and Houston.
- Space and Homeownership Opportunities
In Texas, you can often afford a larger home with a yard for a fraction of the price of a comparable property in California.
- Growing Job Market
Major industries — including tech, energy, healthcare, and logistics — continue to expand across the state.
Pros and Cons of Living in Texas
Before making the move, it’s important to weigh both sides.
Pros
- Lower housing costs
- No state income tax
- Strong job growth
- Larger homes and more space
- Business-friendly climate
- Central U.S. location for travel
Cons
- Higher property taxes
- Hot summers (especially in Central and South Texas)
- Fewer public transportation options compared to major California cities
- More limited consumer protections in some areas
- Weather risks (hurricanes, tornadoes, severe storms depending on region)
If you’re asking, “Is Texas a good place to live?” — the answer depends on your priorities. If affordability and job growth matter most, Texas ranks high. If mild weather and coastal living are critical, California may still have the edge.
Cost of Living Overview
Understanding the cost of living in Texas is critical before relocating.
Housing Costs
Housing is where most people see the biggest savings.
- Median home prices in many Texas cities are significantly lower than in California metro areas.
- Rent is generally more affordable, especially outside Austin’s core.
For example:
- A $1 million home in coastal California might cost $350,000–$500,000 in many Texas cities.
- Monthly rent for a one-bedroom apartment is often hundreds of dollars less than comparable California cities.
However, Austin’s housing market has risen sharply due to tech growth.
Utilities
Utilities in Texas can be higher than expected due to:
- Heavy air conditioning use in summer
- Deregulated electricity markets in many areas
Electricity bills can spike during extreme heat. Always compare providers if you’re moving to a deregulated energy area.
Property Taxes
Here’s where many Californians are surprised.
Texas has:
- No state income tax
- But relatively high property tax rates
Property tax rates commonly range from 1.5% to 2.5% of assessed home value annually, depending on county and school district.
In contrast, California’s Proposition 13 limits annual property tax increases. So while home prices may be lower in Texas, your annual tax bill could be higher than expected.
Best Cities to Move to in Texas
The right city depends on your lifestyle and career goals.
Austin
- Tech hub (often called “Silicon Hills”)
- Vibrant cultural scene
- Strong job growth
- Rising housing costs
Best for: Tech workers, entrepreneurs, young professionals.
Dallas–Fort Worth (DFW)
- Large corporate presence
- Diverse job market
- Suburban family-friendly communities
Best for: Corporate professionals, families.
Houston
- Energy capital of the U.S.
- Medical and healthcare powerhouse
- More affordable housing
Best for: Energy, healthcare, engineering careers.
San Antonio
- Lower cost of living
- Military presence
- Historic charm
Best for: Retirees, military families, budget-conscious movers.
Smaller Growing Cities
- Frisco
- Plano
- Round Rock
- The Woodlands
These suburban areas offer strong schools, safety, and newer housing developments.
Job Market & Major Industries
Texas has one of the strongest job markets in the country.
Major industries include:
Technology
- Austin leads with companies like Dell, Oracle, Tesla, Apple expansions.
Energy
- Houston remains dominant in oil, gas, and renewable energy.
Healthcare
- Texas Medical Center in Houston is one of the largest medical complexes in the world.
Manufacturing & Logistics
- Dallas–Fort Worth is a major distribution hub.
Aerospace & Defense
- Strong presence near San Antonio and Fort Worth.
If you’re relocating without a job secured, consider researching:
- Local industry demand
- Salary comparisons
- Licensing requirements (if applicable)
Texas Taxes Explained
One of the most attractive aspects of moving from California to Texas is tax savings — but it’s important to understand the full picture.
No State Income Tax
Texas residents do not pay state income tax on wages or business income.
This can significantly increase take-home pay compared to California’s top tax brackets.
Property Taxes
As mentioned earlier:
- Texas property taxes are higher than the national average.
- They fund local schools and municipal services.
Sales Tax
Texas state sales tax is 6.25%, and local jurisdictions can add up to 2%, bringing the total to 8.25% in many areas.
Overall Tax Burden
For renters and high-income earners, Texas often offers tax savings.
For homeowners with high-value properties, the difference may be less dramatic than expected.
Weather Considerations
Climate is one of the biggest lifestyle changes.
Heat
Summers in Texas can be extremely hot:
- 95–105°F temperatures are common
- Humidity can make it feel hotter
Air conditioning is essential.
Storms
Depending on region:
- Gulf Coast (Houston): Hurricane risk
- North Texas: Tornado risk
- Central Texas: Flash flooding
- West Texas: Dry heat and dust storms
Unlike California, earthquakes are rare, but severe weather preparedness is important.
Steps to Take Before Moving (Moving to Texas Checklist)
Here’s a practical moving to Texas checklist to simplify your transition:
- Budget the Move
- Get quotes from interstate movers
- Compare DIY vs. professional services
- Research Neighborhoods
- School districts
- Commute times
- Property tax rates
- Secure Employment (If Possible)
- Transfer within company
- Confirm remote eligibility
- Update Insurance
- Homeowners or renters insurance
- Auto insurance (Texas rates vary)
- Arrange Utilities
- Electricity provider (if deregulated)
- Water and trash service
- Internet providers
- Plan for Temporary Housing (If Needed)
- Schedule School Transfers
- Set Up Mail Forwarding
- Update USPS address
- Notify banks and subscriptions
- Prepare Important Documents
- Birth certificates
- Social Security cards
- Vehicle titles
How to Transfer Your Driver’s License and Register a Vehicle
Once you establish Texas residency, you must:
Step 1: Vehicle Inspection
Texas requires a vehicle inspection before registration (rules may vary by county).
Step 2: Register Your Vehicle
Within 30 days of establishing residency:
- Visit your county tax office
- Provide proof of insurance (Texas minimum coverage required)
- Submit out-of-state title and registration
Step 3: Get a Texas Driver’s License
Visit a Texas Department of Public Safety (DPS) office and bring:
- Proof of identity
- Social Security number
- Two proofs of Texas residency
- Current out-of-state license
You must surrender your California license.
Appointments are recommended due to long wait times in major cities.
Is Texas a Good Place to Live?
For many former Californians, Texas offers:
- Greater financial flexibility
- Career growth
- Homeownership opportunities
However, climate differences, cultural adjustments, and higher property taxes require careful planning.
Ultimately, whether Texas is a good place to live depends on your personal goals — but financially and professionally, it remains one of the most attractive relocation destinations in the U.S.
Frequently Asked Questions
- Is it cheaper to live in Texas than California?
In most cases, yes. Housing costs are significantly lower, and there is no state income tax. However, property taxes and utility costs should be factored into your budget.
- How much money should I save before moving to Texas?
Ideally, have at least 3–6 months of living expenses saved, plus moving costs, security deposits, and emergency funds.
- Do I need a new car registration immediately?
You must register your vehicle within 30 days of establishing Texas residency.
- Are salaries lower in Texas?
Some industries may offer slightly lower salaries than California, but the lower cost of living in Texas often offsets the difference.
- What is the biggest adjustment when moving from California to Texas?
The climate is often the biggest change — especially the summer heat and humidity. Cultural differences and transportation reliance on cars can also be noticeable.
Relocating from California to Texas can be financially rewarding and professionally beneficial — but preparation is key. Use this guide and moving to Texas checklist to ensure your transition is smooth and informed.
