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Moving from California to Texas: Key Insights and Tips
Key differences in cost of living, job markets, and lifestyle, plus a step-by-step moving guide
4 minute read • Last update March 2025
How many people are moving from California to Texas?
California to Texas migration has been increasing in recent years.
According to the Texas Realtors 2024 Relocation Report in 2022, approximately 102,000 people moved from California to Texas, making it one of the most significant state-to-state migration patterns.
While many are drawn to Texas for its affordability and job opportunities, it’s worth noting that around 42,000 people moved from Texas to California in the same year, indicating that migration flows between the two states are dynamic.
Why are people moving from California to Texas?
The average home in Texas is larger than in California
One key reason people move from California to Texas is the ability to afford larger homes.
In Texas, homebuyers get more square footage for their money compared to California, where high real estate prices often mean smaller living spaces. Many relocating families appreciate the extra space for home offices, backyards, and overall comfort, making Texas an attractive option for those looking to upgrade their living situation.
Check out the head-to-head comparison using American Homeshield 2022 Home Size Index report data.
Is everything bigger in Texas? The homes definitely are!
| State | Median Home Size (SQ. FT.) | U.S. Rank |
|---|---|---|
| Texas | 2,170 SQ. FT. | 11th |
| California | 1,860 SQ. FT. | 38th |
Texas has lower state income taxes than California
One of the most significant financial benefits of moving to Texas is the absence of a state income tax, allowing residents to keep more of their earnings.
In contrast, California has one of the highest state income tax rates in the country, with top earners facing rates exceeding 13%.
This difference can result in substantial savings for individuals and businesses alike, making Texas a more attractive option for those looking to maximize their income.
Cost of living in Texas is lower than in California
The cost of living in Texas is significantly lower than in California. Housing prices, utilities, and everyday expenses tend to be more affordable, allowing residents to stretch their budgets further.
This, combined with the fact that Texas has no state income tax, means residents keep more of their earnings. In the chart below, you can see data from Best Places California cost of living versus Texas.
| State | Estimated Monthly Expenses (Family) | Estimated Monthly Expenses (Individual) | Cost of Living Index Score (Compared to U.S. Average) |
|---|---|---|---|
| Texas | $4,740 / month | $3,567 / month | 94.2 |
| Californica | $11,700 / month | $5,767 / month | 149.9 |
Average commute time in Texas is shorter than in California
Traffic congestion is a major concern for many Californians, especially in cities like Los Angeles and San Francisco, where long commute times and gridlock are common. Texas generally offers shorter commute times and less overall traffic stress, despite the traffic congestion Texans experience in major metro areas like Houston and Austin.
Many relocating residents find that Texas cities provide better road infrastructure and more accessible suburban living options, reducing daily travel headaches. The average commute time in Texas is 9.77% faster compared to California.
| State | Average Commute Time |
|---|---|
| Texas | 26.6 minutes |
| California | 29.2 minutes |
Pros and cons: Texas
Pros of living in Texas
- Affordable Cost of Living: Lower housing prices compared to California and cheaper general expenses (food, childcare, healthcare).
- No State Income Tax: Residents keep more of their earnings, simplifying financial management.
- Growing Job Market: Strong industries include energy, technology, and healthcare.
- Diverse Climate & Geography: Warm weather with varying conditions across the state.
- Business-Friendly Environment: Fewer regulations make it attractive for entrepreneurs.
Cons of living in Texas
- Limited Public Transportation: Most cities are car-dependent with underdeveloped transit systems.
- High Uninsured Rate: Texas has the highest percentage of uninsured residents in the U.S., impacting healthcare accessibility.
- Extreme Weather: Hot summers, hurricanes, and tornadoes in certain regions create challenges.
Pros and cons: California
Pros of living in California
- Strong Economy: High-paying jobs in key industries like technology, entertainment, and agriculture.
- Mild & Varied Climate: Coastal regions offer cooler temperatures and scenic views.
- Developed Public Transportation: Major cities like San Francisco and Los Angeles have better transit systems.
- Higher Healthcare Accessibility: Expanded Medicaid programs and lower uninsured rates.
Cons of living in California
- High Cost of Living: Expensive housing, utilities, and general expenses.
- High Income Tax: One of the highest tax rates in the U.S., reducing take-home pay.
- Traffic & Overcrowding: Major cities suffer from congestion, making commutes stressful.
- Strict Business Regulations: Tougher laws and higher taxes create challenges for entrepreneurs.
Where are people moving to Texas from California?
Many Californians moving to Texas are relocating from major metropolitan areas such as Los Angeles, San Francisco, and San Diego. Popular Texas destinations include Austin, Dallas, Houston, and San Antonio, where job opportunities and lower living costs provide an attractive alternative.
Major California-based companies have made the move, contributing to this migration.
- Tesla moved its headquarters from Palo Alto to Austin in 2021.
- Other California companies that have moved to Texas include Chevron, Realtor.com, and Charles Schwab Corp.
How to move to Texas from California
Checklist for your move to Texas
- Research Texas cities to determine the best location for your lifestyle and job prospects.
- Plan your housing by purchasing or renting in your preferred city.
- Budget for moving costs, including transportation, deposits, and initial expenses.
- Update your driver’s license and vehicle registration within the required timeframe.
- Set up utilities and services such as electricity, water, and internet before your move-in date.
- Get familiar with Texas weather and prepare accordingly for seasonal changes.
Is moving to Texas right for you?
Moving from California to Texas is a big decision that requires careful planning
Texas offers a lower cost of living, a booming job market, and no state income tax, making it an appealing choice for many. To make your transition smoother, ensure your energy provider offers transparent pricing and reliable service.
Explore BKV Energy’s simple, straightforward electricity plans designed for both native Texans and newcomers.
Save on electricity plans with BKVE
Relocating to a new home presents a great opportunity to review your electricity plan. BKV Energy offers affordable, transparent electricity plans tailored for Texas residents, free from hidden fees and complex terms. Our fixed-rate plans feature clear contracts with no usage requirements, making it simple to switch providers and know exactly what you’re paying for.
With options like our Bluebonnet plan, staying powered up has never been easier or more budget-friendly. Check out our plans and make the switch today!
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