Relocation decisions are financial decisions. The numbers below are drawn from published 2025–2026 statewide averages and cover the costs that matter most to households moving from California to Texas. In every category listed here, Texas comes out ahead.
| Category | California | Texas | The Difference |
|---|---|---|---|
| State Income Tax | 1% to 13.3% 12 brackets; highest marginal rate in the nation on income over $1M | 0% No state income tax at any level | A household earning $200,000 saves roughly $16,000–$18,000/year simply by crossing the state line. |
| Gasoline per gallon, regular, statewide avg. | ~$4.75/gal Cap-and-trade program, special blend requirements, ~$0.54/gal state tax | ~$2.95/gal ~$0.20/gal state fuel tax; proximity to Gulf Coast refineries | At 12,000 miles/year and 28 MPG, that gap costs California drivers roughly $770 more per year. |
| Electricity residential avg., per kWh | ~$0.32/kWh Wildfire mitigation mandates, clean energy transition costs, tiered rate structures | ~$0.14/kWh Competitive ERCOT wholesale market, abundant natural gas and wind generation | A typical household using 10,000 kWh/year pays roughly $1,800 less in Texas. |
| Average Home Price median, statewide | ~$780,000 Coastal markets like LA, SF, and San Diego push this well above $1M | ~$340,000 Hill Country communities like Boerne and Fair Oaks Ranch range from $450K–$700K for quality homes on larger lots | Median-priced buyers get roughly 2.3× the home in Texas by square footage and lot size. |
| Vehicle Registration annual, on a $50,000 car | ~$465/year Vehicle License Fee at 0.65% of assessed value plus registration, Highway Patrol, and county fees | ~$77.50/year Flat base fee of $51.75 plus annual inspection; no value-based vehicle taxes | Roughly $387/year saved — nearly $2,000 over five years. |
| Sales Tax combined state + local, typical | 7.25%–10.75% State rate 7.25%; most counties add 1–3.5% in district taxes; LA County tops 10.25% | 6.25%–8.25% State rate 6.25%; local option taxes can add up to 2% | Texas is generally 1.5 to 2.5 percentage points lower on everyday purchases. |
| Natural Gas residential, per therm | ~$2.30/therm Pipeline delivery costs, mandated renewable portfolio, and wildfire surcharges | ~$1.20/therm Major natural gas producing state, short supply chain, competitive wholesale market | A household using 500 therms/year saves roughly $550 annually. |
| Automobile Insurance annual average | ~$2,400/year High accident density, uninsured motorist rates, and litigation costs | ~$2,100/year Hail and storm exposure offset by lower population density outside metro areas | $300/year saved — roughly $1,500 over five years, with lower accident density and litigation costs outside metro areas. |
| Groceries average basket, typical household | 12–15% above national avg. Higher transportation, labor, and regulatory compliance costs passed to consumers | 3–5% below national avg. Proximity to agricultural regions, lower distribution costs | A typical family saves roughly $900/year on groceries — that's a week and a half of free shopping every year. |
| Water / Sewer monthly, typical household | ~$80–$120/month Drought surcharges, limited aquifer access, and mandated conservation infrastructure | ~$50–$80/month Hill Country varies — municipal water in Boerne is more affordable; well water can reduce or eliminate monthly bills | Savings of roughly $300–$700/year, more if the property is on a private well. |
| Childcare / Preschool average monthly, full-time infant care | ~$1,800–$2,200/month Among the highest in the nation | ~$900–$1,200/month Significantly lower cost of living extends to family services | A family with one child in full-time care saves roughly $12,000–$15,000 per year. |
The Bottom Line
Texas wins on every major cost category that matters to relocating households. Zero state income tax alone saves a $200K household roughly $16,000–$18,000 per year. Add in cheaper electricity, gasoline, groceries, childcare, vehicle registration, water, natural gas, and automobile insurance — and a California family relocating to the Hill Country can expect to save $30,000 to $45,000 per year across these eleven categories.
Over a five-year horizon, that compounds to $150,000 to $225,000 in retained household wealth — money that stays in your pocket instead of going to taxes, utilities, and inflated service costs. For a side-by-side property tax analysis, see our dedicated Prop 13 comparison.
Prop 13 vs Texas Property Tax
A detailed breakdown of how California's assessment caps compare to Texas rates, with millage data for Kendall, Bexar, and Comal Counties.
Cost of Living Overview
Housing, utilities, and annual savings breakdowns for Bay Area, LA, and Sacramento households relocating to Boerne, Fair Oaks Ranch, and San Antonio.