Does Texas have lower taxes than California?

On wages alone, Texas is lower (0.00% vs 9.30%). Use the calculator above to compare your specific situation.

Which state has the lowest overall tax burden?

Among the 50 states, Alaska, Wyoming, South Dakota, Florida, Tennessee, Texas, Nevada, Washington, and New Hampshire consistently rank lowest because they have no broad personal income tax. Property and sales taxes can still be material — Texas, for example, has high property tax.

Does California tax retirement income differently than Texas?

Yes — retirement treatment varies. Some states fully exempt Social Security, pensions, or both. See each state's guide for current rules.

Does moving partway through the year split my taxes?

Yes. You will file part-year resident returns in both states. Most states tax income earned while a resident plus state-sourced income while a non-resident.

How accurate is this comparison?

It uses 2026 IRS federal brackets and each state's average effective rate. Local income taxes, special surtaxes, and personal credits can shift the result by several thousand dollars.

Are property and sales tax included in the calculator?

The calculator focuses on income and capital-gains tax. Use the property tax calculator and the sales-tax rows above for those components.

California vs Texas Taxes (2026)

Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between California and Texas for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.

Tax	California	Texas
State income tax (effective)	9.30%	None
Long-term capital gains	9.30%	None (federal only)
Property tax (effective)	0.75%	1.80%
Combined sales tax	8.82%	8.25%
Retirement income	ss-exempt	no-tax
Income system	progressive	none

Tax savings calculator

Filing status

Annual income

Pre-tax retirement

Long-term capital gains

Estimated 2026 burden

California total tax

$24,568

Texas total tax

$15,370

California state tax

$9,198

Texas state tax

Difference

−$9,198

Texas saves you money

As % of income

7.66%

Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.

Relocation analysis

Moving from California to Texas could save about $9,198 per year on this profile — roughly 7.66% of gross income.

Property tax difference on a $400k home: $4,200/yr.
Sales tax difference on $50k of taxable spending: $285/yr.
Capital gains difference per $10k gain: $930.

Key differences

California: 8.84% corporate tax — highest tier income at 13.3%; mental-health 1% surtax over $1M.
Texas: No personal income tax; franchise (margin) tax 0.375–0.75% over $1.23M revenue.
Income system: California is progressive, Texas is none.
Retirement: California — ss exempt; Texas — no tax.

Recommended Tax Filing Software

Once you know what you owe, file with software built for your situation. We compare the top U.S. options below.

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Comparison FAQs

It depends on income mix. Texas has an effective income rate of 0% vs California's 9.30%. Property tax (0.75% vs 1.80%) and sales tax can swing the answer.

Related resources

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