The California-to-Texas move is America's most famous tax migration, and the paycheck math explains why. Texas taxes no wage income; California's progressive rates reach 9.3% before $100k of taxable income. Here is the same single filer's 2026 take-home pay in both states:
| Gross salary | Texas net | California net | Texas advantage |
|---|---|---|---|
| $60,000.00 | $50,390.00 | $48,544.84 | $1,845.16/yr |
| $100,000.00 | $79,180.00 | $73,852.86 | $5,327.14/yr |
| $150,000.00 | $113,791.00 | $103,813.86 | $9,977.14/yr |
| $250,000.00 | $183,182.00 | $163,904.86 | $19,277.14/yr |
What the table doesn't show
- Texas property taxes (~1.6% effective) are roughly double California's Prop-13-limited rates — homeowners give some of the gap back.
- California's SDI payroll tax (1.2%, uncapped) isn't modeled above and widens the gap further for high earners.
- Housing costs, not taxes, remain the biggest cost-of-living difference.
Run your own numbers: Texas paycheck calculator · California paycheck calculator