State comparison
California vs Texas: which state is better to live in?
Texas costs a median household about $3,700 a year less in state and local taxes than California, mostly because it has no income tax.
California
Moderate tax burden · COL index 142
Wins 6 categories
Texas
Moderate tax burden · COL index 97
Wins 9 categories
Taxes: California vs Texas
California has a graduated income tax topping out at 13.3%, which works out to 4.5% on a median income of $74,580, or $3,375 a year. Texas has no state income tax. Texas wins on income tax at 2026 rates.
Property tax is 0.71% of home value a year in California and 1.60% in Texas (Tax Foundation, 2023); on each state's median home that is $5,609 against $5,440, so California has the lower rate.
Combined state and local sales tax averages 8.82% in California and 8.19% in Texas; Texas is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $10,957 a year in California, $7,272 in Texas. Texas is cheaper on total state and local tax.
Housing and cost of living
California's cost of living index is 142 and Texas's is 97, where 100 is the national average; Texas is about 46% cheaper day to day.
The median home costs $790K in California and $340K in Texas (Zillow, 2024), a $450K gap in Texas's favor. A two-bedroom rents for about $2,300 a month in California and $1,600 in Texas.
Home insurance averages $2,100 a year in California and $3,200 in Texas, so California is cheaper to insure.
Safety
Violent crime runs 499 incidents per 100,000 residents in California and 447 in Texas (FBI Crime Data Explorer, 2023); Texas is the safer state by that measure, with a rate 12% lower. Property crime is 2,027 per 100,000 in California against 2,478 in Texas, again favoring California.
Health
Life expectancy is 79.2 years in California and 76.3 in Texas (County Health Rankings, 2024), a 2.9-year edge for California. The Commonwealth Fund's 2023 scorecard ranks California's health system 13th of 50 and Texas's 36th, so California scores better on care.
6.8% of California residents have no health insurance against 18.4% in Texas, which favors California. California expanded Medicaid and Texas did not.
Schools
Education Week's 2023 Quality Counts report ranks California's K-12 schools 20th in the country and Texas's 36th, 16 places apart in California's favor. Texas runs a school-choice voucher program; California does not.
Laws and politics
In the 2024 presidential election California went to Harris by 20 points and Texas went to Trump by 14 points.
California has may-issue carry permits and a Giffords gun-law grade of A; Texas has permitless carry and a grade of F, so California regulates guns more tightly and Texas is the friendlier state for gun owners.
Abortion is protected by state law in California and banned with narrow exceptions in Texas, and marijuana is legal for adults in California and medical only in Texas as of 2026. The minimum wage is $16.00 an hour in California and $7.25 in Texas.
Climate and risk
Natural disaster risk is very high in California (wildfire, earthquake, drought) and very high in Texas (hurricane, tornado, flood). Annual average air quality index is 62 in California and 43 in Texas (under 50 is good), favoring Texas.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
6
California
9
Texas
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Score For My Profile →Questions people ask
Is California or Texas better to live in?
Texas wins more of the measures that decide a move. Texas on taxes ($7,272 a year for a median household against $10,957); Texas on everyday costs (index 97 against 142); Texas on safety (447 violent crimes per 100,000 against 499); California on schools (ranked 20th against 36th).
Which is cheaper, California or Texas?
Texas is cheaper day to day: cost of living index 97 against 142. The median home is $790K in California and $340K in Texas (2024). On state and local taxes Texas saves a median household about $3,700 a year.
Does California or Texas have lower taxes?
Texas. A household earning $74,580 pays about $10,957 a year in California ($3,375 income tax, $5,609 property tax on the median home and $1,973 in sales tax) and $7,272 in Texas ($0 income tax, $5,440 property tax on the median home and $1,832 in sales tax), at 2026 rates.
Which is safer, California or Texas?
Texas, on the FBI's 2023 figures. Violent crime is 499 per 100,000 residents in California and 447 in Texas; property crime is 2,027 against 2,478.
Which has better schools, California or Texas?
California. Education Week's 2023 Quality Counts report ranks California 20th of 50 for K-12 and Texas 36th. Texas also offers school-choice vouchers.
Is California or Texas better for retirees?
Texas is friendlier to retirees on paper. California does not tax Social Security, taxes pensions as income and has no estate or inheritance tax; Texas does not tax Social Security, exempts pensions and has no estate or inheritance tax. Property tax on a median home is $5,609 a year in California and $5,440 in Texas.