Texas vs California Property Tax Comparison

Thinking about moving from California to Texas? Compare property taxes side-by-side and see exactly how much you could save (or pay more) with our interactive calculator.

Quick Answer

Texas has higher property tax rates (1.81% avg) than California (0.75% avg), but California home prices are typically 2-3x higher. On a $500,000 home, Texas property taxes average $9,050/year while California averages $3,750/year. However, California's high home prices often result in higher actual tax bills despite lower rates.

Compare Your Property Tax Bill

$200K$1M$2M

TXTexas

Without Exemptions
$9,050/year
$754/month
With $100K Homestead Exemption
$7,240/year
Saves $1,810/year
Average Rate: 1.81%
Homestead Exemption: Up to $100K

CACalifornia

Property Tax (Prop 13)
$3,750/year
$313/month
Prop 13 Protection
Assessed value increases capped at 2%/year. Your actual tax bill may be lower than shown if you've owned the home for several years.
Average Rate: 0.75%
Assessment: Limited to 2% annual increase

For a $500,000 home:

Texas pays
$+5,300 more/year
Difference per month
$442
Texas with homestead saves
$1,810/year

Texas Property Taxes

Pros

  • ✓No state income tax - property tax funds local services
  • ✓$100,000 homestead exemption saves ~$1,810/year
  • ✓Over-65 exemption provides additional $10,000 off assessed value
  • ✓10% annual assessment cap for homesteaded properties
  • ✓Lower home prices mean smaller absolute tax bills

Cons

  • ✗Highest average property tax rate in the nation (1.81%)
  • ✗Property reassessed at full market value when sold
  • ✗Some counties exceed 2.5% effective rate

California Property Taxes

Pros

  • ✓Lowest average property tax rate among large states (0.75%)
  • ✓Prop 13 caps assessment increases at 2% per year
  • ✓Long-term homeowners pay far below market value
  • ✓Prop 19 allows seniors to transfer base year value
  • ✓Predictable tax increases make budgeting easier

Cons

  • ✗Extremely high home prices mean larger absolute bills
  • ✗Property reassessed at full market value when sold
  • ✗Mello-Roos and special assessments can add 0.5-1.5% more
  • ✗New homebuyers pay highest rates while longtime owners pay less
  • ✗High state income tax (up to 13.3%) makes overall tax burden higher

Real-World Examples

$400,000 Starter Home

Texas (Austin area)
Annual Tax: $7,240
With Homestead: $5,430
Monthly: $452
California (Sacramento area)
Annual Tax: $3,000
Monthly: $250
California saves $2,430/year

$800,000 Family Home

Texas (Dallas suburbs)
Annual Tax: $14,480
With Homestead: $12,670
Monthly: $1,056
California (Orange County)
Annual Tax: $6,000
Monthly: $500
California saves $6,670/year

Note: $800K buys a luxury home in Texas but a median home in many California markets

$1.5M Upscale Home

Texas (Houston suburbs)
Annual Tax: $27,150
With Homestead: $25,340
Monthly: $2,112
California (San Diego)
Annual Tax: $11,250
Monthly: $938
California saves $14,090/year

The Bigger Tax Picture: Total State Tax Burden

While Texas has higher property tax rates, California has significantly higher income taxes. Here's how the total tax burden compares:

For a $150,000 household income + $500,000 home:

Texas Total Taxes
Property Tax: $7,240
State Income Tax: $0
Sales Tax (est): $3,750
Total: $10,990/year
California Total Taxes
Property Tax: $3,750
State Income Tax: ~$13,000
Sales Tax (est): $3,250
Total: $20,000/year
Texas saves $9,010/year in total taxes despite higher property taxes

Calculate Texas Property Taxes

Get exact property tax calculations for all 254 Texas counties with homestead and over-65 exemptions.

Texas Calculator

Calculate California Property Taxes

Calculate Prop 13 property taxes for all 58 California counties including Mello-Roos districts.

California Calculator

Compare More States

Texas vs Florida →California vs Florida →Texas vs New York →

Sources & Data Verification

All data on this page is sourced from official government sources and verified as of 2025:

Disclaimer: Tax rates and regulations are subject to change. Always verify current rates with your local tax assessor's office. This comparison is for informational purposes and should not be considered tax or financial advice.

Important Disclaimer

This information is for educational purposes only and should not be considered tax, legal, or financial advice. Property tax rates, rules, and exemptions change frequently. Always verify current information with your local tax assessor or consult a qualified professional before making decisions.