Moving from Texas to California: How It Changes Your Taxes

2026 Paycheck Comparison: Texas vs. California

In both states, your Federal income tax and FICA (6.2% Social Security up to $184,500 + 1.45% Medicare) stay the same. What changes on your pay stub is California state income tax and CA SDI. Below are exact 2026 figures assuming standard deduction and 0% 401(k):

3 Other Tax Differences to Budget For

• Property Taxes: Texas has famously high property tax rates (often 1.6%–2.2%+ of assessed value), whereas California's Proposition 13 caps base property taxes around 1% (plus local voter-approved bonds) and limits annual assessed-value growth to 2%. Homeowners sometimes find lower property tax bills partially offset state income taxes.
• Sales Tax: Texas's statewide sales tax is 6.25% (up to 8.25% locally). California's statewide base is 7.25%, with major metros higher — for example, Los Angeles County has a 10.25% countywide rate.
• Pre-Tax 401(k) Shield: Contributing to a traditional 401(k) (up to $24,500 in 2026) lowers your California taxable income in your top marginal bracket (often saving 8%–9.3% on state taxes alone), though it does not reduce the 1.3% CA SDI deduction.

Negotiating a California Job Offer?

If you're moving from Texas for a new role, plug your offer into our Paycheck Mode before accepting. Looking at a $150,000 Single salary, roughly $978/month will go toward California state income tax and SDI combined — an essential number to factor in alongside housing costs.