By Tanya Kerr, M.Ed., Broker Associate, REALTOR® | T. Kerr Property Group | Updated May 2026
California has been the #1 source of new Austin residents for years, and the pattern continues into 2026. Bay Area tech workers, LA professionals, San Diego families, they all show up with similar questions, similar misconceptions, and a few predictable surprises waiting for them.
We’ve helped families make this exact move from San Francisco, Cupertino, Palo Alto, Pasadena, Irvine, La Jolla, and a dozen smaller California cities. This guide covers what we tell each of them: the real tax math, the property tax shock, the best Central Texas suburbs for ex-Californians, and how to plan a move that actually works.
Why Californians Keep Moving to Austin
The list won’t surprise you, but it’s worth being explicit about what’s still true in 2026.
Taxes. California’s top marginal income tax rate is 13.3%, the highest in the nation. Texas has zero state income tax, constitutionally guaranteed. For a household earning $250,000, the income tax savings alone is typically $15,000 to $20,000 per year.
Housing. California’s median home price is roughly $730,000 statewide and far higher in Bay Area and coastal markets. The Austin metro median sits around $440,000-$460,000 in early 2026, and Williamson County often runs $50K-$100K below the metro median.
Space. A budget that buys a 1,200-square-foot bungalow in Mountain View buys a 3,500-square-foot home on a quarter-acre lot in Wolf Ranch Georgetown.
The job market. Apple’s Austin campus is one of its largest worldwide. Tesla’s headquarters and Gigafactory anchor the region. Oracle, Samsung, Meta, Google, Indeed, and dozens of major employers have substantial Austin operations.
Lifestyle. 300+ days of sunshine, strong outdoor culture, world-class food scene. For Californians who valued the outdoor-and-creative aspects of California life but couldn’t afford the price tag anymore, Austin is often the closest cultural fit available in Texas.
The Property Tax Shock and How to Plan for It
Here’s what catches Californians off guard more than anything else.
California’s Proposition 13 caps annual property tax increases at 2%. Long-term California homeowners often pay effective rates of 0.5% to 0.7%. Texas has no Prop 13. Property taxes here typically run 1.8% to 2.5% of assessed value annually.
On a $750,000 home in Williamson County, that’s roughly $13,500 to $18,750 per year, paid in addition to your mortgage and insurance.
The good news (and a 2026 update most articles haven’t caught): Texas voters approved Proposition 13 (SB 4) in November 2025, confusingly the same number as California’s famous Prop 13 but unrelated. It raised the school district homestead exemption from $100,000 to $140,000. On a $450,000 home, that saves roughly $1,800 to $2,200 per year.
The math against California: For most working California households moving to Texas, the income tax savings still outpaces the property tax premium, often by $10,000 to $25,000 per year net.
Three rules every Californian moving here must follow:
- File the homestead exemption with your county appraisal district within 30 days of closing.
- Watch for MUD and PID districts. Many newer Williamson County developments add 0.3%-0.8% on top of standard rates.
- The first tax bill arrives roughly 12-14 months after closing. Plan your cash flow accordingly.
California’s Residency Rules, Don’t Skip This
California has aggressive residency rules and the Franchise Tax Board (FTB) actively audits departing high earners. To fully terminate California tax residency:
- Change your driver’s license to Texas within 90 days of arrival
- Update voter registration to Texas
- Move primary banking and brokerage relationships to Texas addresses
- Spend more than 183 days outside California in your departure year
- Document the move date, utility activations, lease/closing documents, mover receipts
If you continue working remotely for a California employer after your move, California may still claim some of that income as California-sourced. This is a CPA conversation.
Best Central Texas Suburbs for Ex-Californians
After hundreds of California-to-Texas moves, certain patterns emerge.
Bay Area tech workers often gravitate toward Cedar Park, Leander, and northwest Austin, closer to Apple, Google, and Indeed offices.
Bay Area families wanting more land lean toward Georgetown’s Wolf Ranch, Highland Estates, and Cimarron Hills.
Tesla employees cluster in southeast Austin, southern Williamson County, and Manor.
LA-area families with school-age kids often choose Round Rock, Georgetown, or Cedar Park.
San Diego retirees and pre-retirees love Sun City Georgetown, a 55+ active adult community with golf, pools, fitness, and 80+ resident clubs.
Buyers who valued the older-neighborhood feel of Pasadena, Berkeley, or San Franciscooften respond strongly to Old Town Georgetown.
How to Time Your California Sale With Your Texas Purchase
Most Californians have substantial equity. A 20% down payment on a $750K Texas home is $150K, well within reach for someone selling a $1.5M California home with even modest appreciation. This often means you can buy in Texas before selling in California, sometimes using a bridge loan or HELOC against the California home.
Sale-contingent offers are challenging but not impossible. In a market where sellers have multiple options, a contingent offer competes poorly. Cash or non-contingent financing wins.
Renting first is reasonable if you’re unsure about specific neighborhoods or your job has uncertainty.
We recently helped a Bay Area family negotiate $275,000 under list price on a Williamson County luxury home. The seller’s situation called for closing certainty over price; our offer structure delivered that, and the resulting savings funded their mortgage rate buy-down. Strategy matters in this market.
Frequently Asked Questions
Is moving from California to Austin worth it in 2026?
For most California households earning $100,000+, yes. The income tax savings alone typically run $5,000 to $25,000+ per year. The math gets closer for retirees with low-basis California homes, and tighter for buyers purchasing $1M+ Texas homes due to property taxes.
How much does it cost to move from California to Austin?
Full-service movers typically charge $7,000 to $14,000 for a 3-bedroom home depending on the California origin city. DIY rental trucks run $3,000 to $6,000 plus fuel. Most California-to-Austin moves run $10,000 to $20,000 total.
How long should I plan ahead for a California-to-Austin move?
Six months is comfortable. Three months is doable. We recommend a scouting trip 4-6 months out, listing your California home (if applicable) 2-3 months out, and being under contract on a Texas home 30-60 days before your move date.
Will California still tax me after I move to Austin?
Only on California-sourced income. If you fully terminate California residency and don’t continue earning California-sourced income, California has no claim. If you keep working remotely for a California employer, the answer gets complicated. Consult a CPA familiar with multi-state taxation.
What’s the best Austin suburb for someone moving from California?
It depends on your priorities. Bay Area tech workers often choose Cedar Park, Leander, or northwest Austin. Families prioritizing schools and value gravitate toward Georgetown and Round Rock. Retirees love Sun City Georgetown. Luxury buyers settle in Westlake, Lakeway, or Williamson County’s Highland Estates and River Chase.
Will my California real estate license help me buy in Texas?
No. Texas requires a Texas-licensed agent. The better path is to interview a few Texas relocation specialists yourself and choose based on fit and experience.
How is the Austin lifestyle different from California?
Less car-dependent than LA, more car-dependent than San Francisco. Hotter summers. Friendlier in casual interactions. Better food, especially BBQ and Tex-Mex. Stronger sense of community in suburbs like Georgetown.
About T. Kerr Property Group
We’ve helped families relocate to Central Texas from California, Washington, New York, and beyond, handling every step from virtual tours to remote closing. T. Kerr Property Group is a woman-owned, mission-centered real estate team serving Georgetown, Round Rock, Austin, and the surrounding Central Texas area. Our combined team brings 800+ five-star reviews, 2,500+ homes sold, $1 billion+ in total sales production, and 65+ years of combined experience. We are proud PT50 winners, recognized by the Austin Business Journal Residential Real Estate Awards, featured in Real Producers and FOX 7 Austin, voted Best in Round Rock and Georgetown’s Best, and known as one of the top real estate teams in Williamson County and Travis County. Our focus is simple: help people make smart financial decisions through real estate with expert guidance, fierce advocacy, and integrity every step of the way.
Ready to talk? Call (512) 851-8350 or visit our contact page at https://tkerrrealestate.com/contact-us/.