Texas has been the top destination state for domestic migration for over a decade. No state income tax, affordable housing (relative to coastal states), a booming job market, and a business-friendly environment attract hundreds of thousands of new residents each year. But Texas is enormous and diverse - choosing the right city matters as much as choosing the state. Here is everything you need to know about relocating to Texas in 2026.
Texas is generally 5-10% below the national average for cost of living, but it varies by city. Austin is the most expensive major Texas city, with a cost of living roughly at the national average. Dallas-Fort Worth and Houston are 5-8% below average. San Antonio is 10-14% below average and one of the most affordable large cities in the country. El Paso is even cheaper. No state income tax effectively gives you a 5-10% raise compared to states like California (13.3%) or New York (10.9%).
Austin: Tech hub, cultural capital, youngest population. Higher cost of living but strongest salary growth. Best for tech workers and creatives. Dallas-Fort Worth: Corporate headquarters hub (22 Fortune 500 companies). Best job diversity and suburban options. Excellent for families. Houston: Energy capital with massive medical center (Texas Medical Center). Most diverse city in Texas. Lowest cost-to-income ratio. San Antonio: Most affordable. Military city (5 bases). Growing tech sector. Best for budget-conscious movers.
Texas has no state income tax, but it makes up for it with higher property taxes. The average effective property tax rate is 1.6-1.8%, compared to the national average of 1.1%. On a $350,000 home, that is roughly $5,600-$6,300 per year. Sales tax is 6.25% state + up to 2% local, totaling 8.25% in most cities. Despite higher property taxes, the total tax burden is still lower than most states for people earning over $50,000.
Texas added more jobs than any other state from 2020-2025. Key industries: technology (Austin, Dallas), energy (Houston), healthcare (Houston, Dallas), defense and aerospace (San Antonio, Dallas), finance (Dallas), and logistics (all major metros). The state's business-friendly regulations and low taxes continue to attract corporate relocations. Remote workers also benefit from the no-income-tax structure while earning out-of-state salaries.
The heat is not a joke - summers regularly hit 100+ degrees from June through September. You will drive everywhere because public transit is limited in most cities (Austin and Dallas have light rail, but coverage is sparse). Allergies are intense - cedar fever in winter and pollen in spring affect most newcomers. Property insurance is expensive due to hail, wind, and flood risk. And distances are vast - driving from Houston to El Paso takes 10+ hours and you never leave the state.
Moving costs vary by origin. From California: $4,500-$8,000 for a 2-bedroom. From New York: $5,000-$8,500. From Florida: $3,000-$5,500. From neighboring states (Oklahoma, Louisiana, New Mexico): $1,500-$3,500. Local moves within Texas between major cities (Austin to Dallas, Houston to San Antonio) run $2,000-$4,000. Use our calculator to estimate your specific route and home size.
Use our free calculator to get a personalized cost estimate for your move.
Try the CalculatorCompare prices from up to 3 local movers. No obligation, no spam.
Yes, for most people. The combination of no state income tax and below-average cost of living means a household earning $100,000 saves $3,000-$8,000 annually compared to California or New York. Higher property taxes partially offset this, but the net savings are real for most income levels.
It depends on your priorities. Austin for tech and culture, Dallas for corporate careers and families, Houston for healthcare and diversity, San Antonio for affordability. All four have strong job markets and are growing rapidly.
Moving from California to Texas costs $4,500-$8,000 for a 2-bedroom home with full-service movers. Container services (PODS, U-Pack) run $3,000-$5,500. DIY truck rental is $2,000-$3,500 plus fuel. The distance is typically 1,200-1,800 miles depending on the specific cities.
Yes, Texas property taxes average 1.6-1.8% of assessed value, compared to the national average of 1.1%. On a $350,000 home, that is about $5,600-$6,300 per year. However, no state income tax typically results in a lower overall tax burden for most earners.
