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Texas vs. California Taxes: Which Has Lower Taxes?

MRBy Michael Reyes, CFP® Updated June 30, 2026 7 min read

Quick Answer

Texas wins on income tax: it has none, while California's runs from 1% up to 13.3% plus a ~1.1% disability deduction. A single filer takes home roughly $1,800 more per year in Texas at $50,000, about $3,900 more at $75,000, and about $6,500 more at $100,000 — and far more for high earners. But California's property tax is below average while Texas's is high, so compare the full picture, not just income tax.

Texas and California sit at opposite ends of the tax spectrum. Texas has no state income tax; California has the highest top rate in the nation. For anyone weighing a move or comparing job offers, here's what that actually means for your paycheck.

Two opposite systems

Texas

No state income tax. Your paycheck is reduced only by federal tax and FICA. Makes up revenue with high property and sales taxes.

California

Progressive, 1%–13.3%. Plus ~1.1% State Disability Insurance withheld from wages. Property tax is below the national average (Prop 13).

Take-home pay compared (2026)

Single filer, annual take-home after federal tax, FICA, and state tax. California includes state income tax and ~1.1% SDI.

SalaryTexas take-homeCalifornia take-homeTexas advantage
$50,000$42,346~$40,500+$1,800
$75,000$61,391~$57,500+$3,900
$100,000$78,978~$72,500+$6,500

2026 IRS data + state schedules. Single filer. California figures are estimates including ~1.1% SDI. Texas calculator · California calculator

Income tax isn't the whole story

  • Property tax: Texas is among the highest; California is below average thanks to Proposition 13.
  • Cost of living & salaries: California salaries are often higher in absolute terms, but so is housing.
  • Sales tax: both are meaningful; combined local rates can exceed 8–9% in either state.

Bottom line: on take-home pay alone, Texas wins clearly — and the higher your income, the bigger the gap. Whether that outweighs housing and lifestyle differences is your call.

Comparing two specific offers? Use the job offer comparison calculator, or run each state with the Texas and California salary calculators. New to no-income-tax states? See states with no income tax.

Frequently Asked Questions

Does Texas or California have lower taxes?

Texas. Texas has no state income tax, while California has the highest top income tax rate in the country (up to 13.3%) plus a mandatory State Disability Insurance deduction. At every income level a Texan keeps more of their paycheck — the gap widens as income rises, from around $1,800 a year at $50,000 to $6,000+ at $100,000.

How much more do you take home in Texas vs California?

For a single filer, roughly: about $1,800 more per year at $50,000, about $3,900 more at $75,000, and about $6,500 more at $100,000. High earners save far more, since California's rates climb to 13.3%. These are estimates — property and sales taxes differ too.

Is California's higher tax offset by anything?

California's income tax is high, but its property tax rate is actually below the national average (capped by Proposition 13), while Texas relies on high property taxes to make up for having no income tax. So a full comparison depends on whether you rent or own, how expensive your home is, and how much you earn.

What is California's state income tax rate?

California uses progressive brackets from 1% up to 13.3% (the 13.3% applies above $1 million). Most middle-income single filers land in the 6%–9.3% range. On top of that, California withholds State Disability Insurance (about 1.1% of wages) from paychecks.

Does Texas have any income tax at all?

No. Texas has no state or local personal income tax — it's written into the state constitution. Your Texas paycheck is only reduced by federal income tax and FICA, which is why take-home is higher than in California at the same salary.

Should I move from California to Texas just for taxes?

Taxes are one factor, not the whole picture. Texas clearly wins on income tax and take-home pay, but cost of living, housing prices, property taxes, salaries in your field, and lifestyle all matter. Run your specific salary through a calculator for both states before deciding.