Moving to Texas: What You Need to Know
Texas is the number one domestic migration destination in America, gaining more new residents than any other state over the past five years. The state's no-income-tax policy, massive job market, and affordable housing (especially compared to California) make it a magnet for individuals and corporations alike. Tesla, Oracle, Hewlett Packard Enterprise, and CBRE have all relocated headquarters to Texas. The state offers four major metros -- Dallas-Fort Worth, Houston, San Antonio, and Austin -- each with distinct personalities and economies. With a population exceeding 30 million, Texas functions like its own country economically.
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Cost of Living in Texas
Median Home Price
$310,000
Median Monthly Rent
$1,400/mo
Avg Local Move
$980
Avg Long-Distance Move
$4,200
Taxes in Texas
| Tax Type | Rate |
|---|---|
| State Income Tax | None |
| Effective Property Tax | 1.68% |
| State Sales Tax | 6.25% + local up to 2% |
Job Market & Economy
Texas Climate & Weather
Varies dramatically by region. South Texas is subtropical with mild winters. North Texas has hot summers (100°F+) and occasional winter ice storms. West Texas is arid desert. The Gulf Coast is humid with hurricane risk.
Best Cities to Move to in Texas
Pros and Cons of Living in Texas
Pros
- +No state income tax
- +Massive and diverse job market across multiple metros
- +Affordable housing relative to income, especially outside Austin
- +Business-friendly environment attracting major corporate relocations
Cons
- -High property taxes to compensate for no income tax
- -Extreme summer heat, especially in South and Central Texas
- -Limited public transportation in most cities
- -Increasing natural disaster risk (hurricanes, floods, winter storms, power grid concerns)
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Frequently Asked Questions
How much does it cost to move to Texas?
A local move within Texas averages $800–$1,400. Moving from California to Texas (the most common route) costs $3,000–$6,000 for a 3-bedroom home. Cross-country moves to Texas from the East Coast run $3,500–$7,000. Texas is a high-demand destination with good mover availability.
Which Texas city is best to move to?
Austin is the tech and culture hub but has become expensive (median $450,000+). Dallas-Fort Worth has the most corporate jobs and moderate costs (median $350,000). Houston is the most diverse and affordable major city (median $290,000) with a massive healthcare sector. San Antonio is the most affordable (median $270,000) with strong military presence. Fort Worth offers a more relaxed pace with growing appeal.
How high are Texas property taxes?
Texas property taxes average 1.68%, among the highest in the nation. On a $310,000 home, you'd pay roughly $5,200 per year. Some suburbs exceed 2.5%. This is how Texas funds services without an income tax. However, the state has passed homestead exemptions and property tax rate compression measures to provide relief. When comparing to income-tax states, do the full math -- high earners often still save in Texas overall.
What is the Texas power grid situation?
The February 2021 winter storm exposed vulnerabilities in Texas's independent power grid (ERCOT), which is not connected to the national grid. Since then, the state has invested billions in weatherization and grid improvements. Summer heat waves can still strain capacity, and ERCOT occasionally issues conservation alerts. Most residents have not experienced outages since 2021, but the grid remains a topic of concern for prospective movers.
Is Texas really cheaper than California?
For most people, yes -- significantly. A family earning $200,000 saves roughly $20,000 per year in state income tax alone. Housing is 50–70% cheaper (a $400,000 home in Dallas suburbs vs $900,000+ in comparable CA suburbs). However, higher property taxes and private school costs (if public schools don't meet expectations) partially offset savings. Insurance costs are also higher in Texas. Net savings for most families moving from CA to TX are $20,000–$50,000+ per year.