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Cost of Living · Updated June 2026

California vs Texas Cost of Living Comparison

Texas's cost of living index sits at 92 against California's 134 (US average = 100) – so a $80,000 lifestyle in California costs about $54,900 in Texas before taxes. After state taxes the gap shifts further: $80,000 gross nets $61,667 in California vs $65,110 in Texas for a single filer in 2026.

Housing drives most of it: median home prices are $800,000 in California vs $340,000 in Texas, with one-bedroom rents at $2,300 vs $1,300. Progressive brackets from 1% to 12.3%, plus 1% mental-health surcharge over $1M. No state income tax; among the highest property tax rates in the country

Cost of living calculator

Equivalent salary

Budget A
Budget B
Rent share of pay A
Rent share of pay B

Line-by-line, monthly

Item A B Δ

Composite 2026 index incl. centre rent (NYC = 100). Salary figures are gross – taxes not included; pair with the salary after tax calculator.

Key insights

Key insights

  • COL index: California 134 vs Texas 92 (US = 100).
  • $80,000 gross nets $61,667 in California vs $65,110 in Texas (single filer, 2026).
  • Median homes: $800,000 vs $340,000.
  • State income tax on $80k: $3,443 vs $0/year.
  • Renter disposable income favours Texas.
California vs Texas at a glance (2026)
MetricCaliforniaTexas
State income taxup to 13.3%None
Combined sales tax (avg)8.8%8.2%
Effective property tax0.75%1.58%
Cost of living index (US = 100)13492
Median home price$800,000$340,000
Typical 1-bed rent$2,300$1,300

Taxes: the hidden half of the comparison

California taxes wages progressively up to 13.3%, while Texas levies none. On $80,000, that's $3,443 vs $0 per year in state income tax.

Income tax isn't the whole story: sales tax averages 8.8% vs 8.2%, and property tax 0.75% vs 1.58% of home value annually. On a median home, the higher-property-tax state collects $6,000 a year – real money that "no income tax" headlines ignore.

Affordability verdict

For a renter earning $80,000: net pay minus 12× rent leaves $34,067 of disposable income per year in California vs $49,510 in Texas. Texas wins the renter math in 2026.

For buyers the answer can flip: mortgage on the median home plus property tax totals roughly $5,108/month in California vs $2,406 in Texas at 2026 rates. Run the rent vs buy calculator for your target metro before deciding.

FAQ

Frequently asked questions

Is Texas cheaper than California?

Yes – Texas's COL index of 92 runs 31% below California's 134, driven mostly by housing ($340,000 vs $800,000 median homes).

How do taxes compare between California and Texas?

California: income tax up to 13.3%, 8.8% sales, 0.75% property. Texas: no income tax, 8.2% sales, 1.58% property.

What salary do I need in Texas to match $80,000 in California?

About $54,900 pre-tax, using the COL ratio 92/134. After-tax differences add roughly $3,443/year on top.

Which state is better for retirees?

Texas exempts all wage and most retirement income by default. Property tax matters most for owners: 0.75% (California) vs 1.58%.

Do these numbers include 2026 tax changes?

Yes – state rates reflect 2026 schedules (including phased flat-tax reductions where legislated) and the federal math uses 2026 IRS brackets and the $16,100 standard deduction.

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