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
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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.
| Metric | California | Texas |
|---|---|---|
| State income tax | up to 13.3% | None |
| Combined sales tax (avg) | 8.8% | 8.2% |
| Effective property tax | 0.75% | 1.58% |
| Cost of living index (US = 100) | 134 | 92 |
| 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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