California vs Texas Tax Comparison 2026: Take-Home Pay, Property Tax and Moving Guide

Verdict: Texas keeps $6,508 more at $100K single

California vs Texas take-home pay by income

Quick answer: Texas wins at every income because the federal tax and FICA are identical in both states — only California adds state income tax plus SDI. Compare your own salary with the California paycheck calculator and the Texas paycheck calculator, then use the table below to see the full picture.

The table below shows single filers taking the 2026 standard deduction ($16,100). Federal tax uses 2026 IRS floors [0, 12400, 50400, 105700, 201775, 256225, 640600] at rates 10–37%. FICA is shown at a flat 7.65% and is identical in both states, so it never changes the gap. CA state tax is estimated from the 2025 FTB schedule (single, after the state standard deduction) and CA SDI at 1.3% of wages up to the taxable wage cap. Texas state tax and SDI are $0 at every income.

*CA state estimated from the 2025 FTB schedule. Will update when the 2026 schedule is released. Amounts rounded to the nearest dollar. FICA shown at a flat 7.65%; above the Social Security wage base, actual FICA is lower in both states (the gap is unaffected because FICA is identical either way).

How the non-verified rows were computed: Taxable income = gross minus $16,100. Federal = bracket math on the taxable amount with the floors above (check: $83,900 taxable gives $1,240 + $4,560 + $7,370 = $13,170). FICA = gross × 7.65%. CA state = 2025 FTB single schedule on income after the state standard deduction, less the personal exemption credit. CA SDI = 1.3% of wages up to the cap ($1,991 max shown). CA take-home = gross − federal − FICA − CA state − CA SDI. TX take-home = gross − federal − FICA.

High earners: CA 9.3–12.3% top slabs vs TX $0 — the gap is largest at $250K, but read the property-tax tradeoff below before deciding.

Moving from California to Texas: pros and cons

Taxes are only half the decision. Here is the honest one-line version of each side — and if you want more state pairs like this one, browse our state tax comparison hub for more state pairs.

California: pros and cons

Pros:

• Prop 13 keeps property tax stable and predictable for long-term owners.
• Progressive brackets mean a lighter burden on low-income earners.
• SDI funds paid family leave and disability coverage.
• High-salary job density, especially in tech and entertainment.

Cons:

• Top state slabs of 9.3% and above hit high earners hard.
• SDI takes an extra bite out of every paycheck on top of income tax.
• High sales-tax and gas-tax burden on everyday spending.
• Strict FTB residency audits can follow you even after you leave.

Texas: pros and cons

Pros:

• Zero state income tax at every income level.
• No state tax return to file, ever.
• Bigger take-home pay on every paycheck at any salary.
• $140,000 homestead exemption against school property taxes.

Cons:

• Average effective property tax of 1.47–1.68% is among the highest nationally.
• The renting-to-owning cost gap is large once property tax kicks in.
• Combined sales tax up to ~8.25% with local add-ons.
• Public services lean heavily on property-tax revenue, so rates move with local budgets.

Property tax tradeoff: CA Prop 13 vs TX 1.47–1.68%

Quick answer: Texas has no income tax but funds itself with some of the highest property taxes in the country. For renters and mid-salary W-2 workers, the income-tax saving wins easily. For expensive homes, do the math every year.

• California Prop 13: assessed value ~1% base + 2% annual cap — predictable over a long stay.
• Texas: average effective 1.47–1.68% + $140,000 homestead exemption against school taxes.
• $400K Texas home ~$5,880–$6,720/yr property tax before the exemption; in CA the same home starts lower on a Prop 13 base but the difference is offset by the income-tax gap.
• For renters and mid-salary W-2 workers, the Texas income-tax saving beats the property-tax gap; owners of $800K+ homes should run both numbers every year.

Try it in the calculator above: enter an optional home value to see a rough property-tax estimate for both states next to your take-home comparison.

Sales tax note

CA statewide 7.25% + local (8.85%+ common in LA/Bay). TX 6.25% + local, max ~8.25%. Groceries are largely exempt in both states; prepared food is taxable. This does not change the paycheck gap, but it can shift a monthly budget by $50–$150.

Withholding forms: CA DE 4 vs federal W-4

California requires federal Form W-4 plus state Form DE 4 for withholding, while Texas needs only federal Form W-4 because it has no state income tax. After your move, file a new W-4 with your Texas address and confirm California withholding stops on the next payroll cycle.

Moving from California to Texas checklist

Quick answer: The tax saving only sticks if California agrees you left. Work through these 8 steps in order, keep every proof, and file a final part-year California return.

1. Fix your move date and keep lease or deed proof. Your part-year split, credits, and audit defense all anchor to this date — save the signed lease or closing papers.
2. Get your TX license within 90 days and register to vote. A Texas license plus voter registration are the strongest residency signals the FTB looks for.
3. Register your vehicles and notify the CA DMV. Transfer plates and registration to Texas, then tell the California DMV you have left so records stop tying you to the state.
4. Give payroll a new W-4 with your Texas address and stop CA withholding. Confirm the change lands before the next pay cycle and keep the confirmation.
5. Shift bank, medical, and insurance ties. Move accounts, doctors, memberships, and policies — the FTB weighs "closest connections," not just your address.
6. File a CA part-year return and split wages by move date. Report only California-period income to Sacramento; a move can also change your refund math, so check our federal tax refund calculator for the move year.
7. Drop DE 4 and keep only the federal W-4. Texas has no state withholding form, so state withholding should be zero from the move forward.
8. Keep a proof folder for a first-year FTB notice. Store copies of the lease or deed, utility bills, and license together — most post-move inquiries are settled with paperwork, not penalties.