Moving to Texas From California & Buying a Home (2026)

Trading California housing prices and state income tax bills for more space in the Lone Star State is an exciting move, but managing a cross-state home purchase and two sets of state rules takes real coordination.

This guide covers everything you need for moving to Texas from California in 2026, from income and property tax differences to vehicle registration deadlines, homestead exemptions, and a step-by-step relocation checklist.

Check Your Texas Home Purchase Eligibility

You will walk away with a clear plan for buying a home in Texas from California, settling into your new county without missing legal deadlines, and protecting your budget once you arrive.

California to Texas Relocation Trends by the Numbers

If you are planning a California to Texas relocation, you have plenty of company. According to U.S. Census Bureau State-to-State Migration Flows from the 1-year American Community Survey (ACS), California is the largest U.S.-state source of new Texans, and Texas is the number-one destination for people leaving California.

In 2024, the 77,161 estimated movers from California accounted for roughly 14% of all domestic movers into Texas from the other 49 states and the District of Columbia (an approximate total of 556,000 domestic movers). After California, the next largest state sources of movers to Texas in 2024 were Florida (52,219), New York (28,233), Louisiana (24,170), and Illinois (23,509).

For Californians heading out of state in 2024, Texas (77,161) led all destinations, followed by Nevada (53,289), Arizona (52,383), Washington (43,938), and Florida (36,194).

Home Prices Across Major Texas Metros

One of the biggest drivers behind moving to Texas from California is what your housing budget can buy. According to Multiple Listing Service (MLS) data from the Texas Real Estate Research Center at Texas A&M University (TRERC), the statewide median home sale price for calendar year 2025 was $335,000, and the 2026 year-to-date median through September 2026 was $334,021.

Within the Dallas-Fort Worth metro, prices vary between the two main divisions: the Fort Worth-Arlington-Grapevine division had a 2025 median sale price of $355,000 ($354,990 for Jan-Sep 2026), while the Dallas-Plano-Irving division had a 2025 median of $410,000 ($405,831 for Jan-Sep 2026). Smaller Texas metros such as El Paso ($267,950 in 2025), McAllen-Edinburg-Mission ($245,000), Lubbock ($240,000), and Wichita Falls ($200,000) offer even lower entry points.

Check Your Texas Home Purchase Eligibility From California

Income Taxes: Texas Constitutional Protections vs. California's Part-Year Rules

Leaving California changes your state tax picture immediately, both through what Texas forbids in its constitution and what California still requires for the year you leave.

What the Texas Constitution Bans

Texas does not just lack a state personal income tax by statute—it bans it in the state constitution. Under Article VIII of the Texas Constitution, Texas residents have four major protections:

• No State Personal Income Tax (Art. VIII, Sec. 24-a): Added by voters on November 5, 2019, this section states that the legislature may not impose a tax on the net incomes of individuals, including an individual's share of partnership and unincorporated association income.
• No State Capital Gains Tax (Art. VIII, Sec. 24-b): Added November 4, 2025, this bars a state tax on individuals' realized or unrealized capital gains (while carving out property, sales, and use taxes).
• No State Wealth or Net-Worth Tax (Art. VIII, Sec. 25): Added November 7, 2023, this bars any state tax based on wealth or net worth.
• No State Estate, Inheritance, or Death Tax (Art. VIII, Sec. 26): This bars a state estate, inheritance, or death tax, as well as any new gift or transfer tax not in effect on January 1, 2025.

Filing Your California Part-Year Return (Form 540NR)

When you relocate mid-year, you do not automatically leave California's tax system behind on moving day. According to the California Franchise Tax Board (FTB), as a part-year resident you must file the California Nonresident or Part-Year Resident Income Tax Return (Form 540NR).

Under FTB rules, a part-year resident pays California tax on two categories of income:

1. All worldwide income received while you were a California resident.
2. Any income from California sources received while you were a nonresident.

If you are a remote worker keeping your California job after moving to Texas, pay close attention to how the FTB treats your workdays:

• Working remotely in Texas with occasional work trips to California: If you move to Texas for a California employer and periodically travel back to California to work, the FTB states that you do need to file a California return. Your California-source income is calculated based on the ratio of days physically worked in California divided by total workdays ("CA Workdays / Total Workdays").
• All work performed outside California after moving: If you perform 100% of your work outside California after your move, that work is generally not California-source income, but the FTB's answer to whether you must file is "Maybe," because deferred or equity compensation may still be California-source income (see FTB Publication 1004).
• Independent contractors: For contractors, the FTB determines California-source income by looking to where the benefit of the service is received by the customer.

Because cross-state residency rules and equity compensation can be complex, review FTB Publication 1031 and consult a qualified tax professional to document your move date cleanly.

Texas Property Taxes and the $140,000 Homestead Exemption

While the Texas Constitution bars any state property tax (Art. VIII, Sec. 1-e), Texas funds local services through local property taxes. Your annual property tax bill is levied by local taxing units—your county, city, independent school district (ISD), and any special districts.

Because rates depend on the exact combination of local taxing units covering a specific lot, there is no single statewide dollar figure for your bill, and our research found no Comptroller-published statewide average effective rate. Homes in different school or special districts can have different tax bills.

How the Texas Homestead Exemption Lowers Your Bill

When you buy a Texas home and occupy it as your principal residence, you can cut your taxable value substantially by filing for a residence homestead exemption. You can read the complete rules in our Texas Homestead Exemption Guide (2026), or review the core benefits below:

• $140,000 Mandatory School District Exemption: Under Tax Code Section 11.13(b) (increased by Senate Bill 4 and approved by voters as Proposition 13 on November 4, 2025, for the 2025 tax year and later), every qualifying Texas homestead gets $140,000 taken off its appraised value for general school district property taxes. As the Texas Comptroller illustrates, if your home is appraised at $300,000, you pay school taxes as if it were worth $160,000.
• $3,000 County Exemption: In counties that collect farm-to-market road or flood-control taxes, homeowners receive a mandatory $3,000 exemption under Section 11.13(a).
• Local Optional Percentage Exemption: Any taxing unit (city, county, school district, or special district) may optionally adopt an exemption of up to 20% of appraised value, with a $5,000 minimum if adopted (Section 11.13(n)).
• 10% Annual Appraisal Cap: Under Tax Code Section 23.23, once your home qualifies for a homestead exemption, its appraised value for tax purposes cannot increase by more than 10% per year (plus the market value of any new improvements). This cap takes effect on January 1 of the tax year following the first year you qualify.
• Extra Relief for Seniors (65+), Disabled Homeowners, and Veterans: Homeowners who are 65 or older or disabled receive an additional mandatory $60,000 school district exemption (for a combined $200,000 off school taxes) plus a school tax ceiling ("freeze"). See our guides on Texas Property Tax Exemptions for Seniors (2026) and the Texas Disabled Veteran Property Tax Exemption (2026) for details.

Filing Form 50-114 (and Why You Need Your Texas ID First)

To claim your exemption, you file Form 50-114 (Residence Homestead Exemption Application) with the county appraisal district (CAD) where your home is located—not with the Texas Comptroller. The home must be your principal residence, and you may claim only one homestead.

For buyers relocating mid-year, Tax Code Section 11.42(f) allows you to receive a prorated homestead exemption for the remainder of the purchase year if the previous owner did not already receive the same exemption on that home for that tax year. Mid-year buyers must apply before the first anniversary of the date they acquire the property; otherwise, the general annual filing deadline is before May 1 (April 30).

There is one catch for new arrivals from California: under Tax Code Section 11.43(n), the chief appraiser cannot approve your homestead exemption unless you submit a copy of your Texas driver license or state ID card and the address on that ID matches the homestead address. That makes transferring your vehicle registration and driver license an urgent priority after closing.

Check Your Texas Home Purchase Eligibility Before You Move

Moving From California to Texas Checklist: Cars, Licenses, and Voting

When you establish residency in Texas, state law sets strict clocks on registering your vehicles and transferring your driver license. Because the agencies depend on each other's paperwork, you must follow a specific order of operations: get Texas auto insurance first, register your vehicle second, and get your Texas driver license third.

Step 1: Vehicle Inspections and Registration (Within 30 Days)

Under Texas Transportation Code Section 502.040(a) and Texas Department of Motor Vehicles (TxDMV) rules, you have 30 days from the time you move to Texas to register your vehicle at your local county tax assessor-collector office. (Active-duty military personnel and non-resident full-time students attending Texas schools are exempt from this requirement.)

Before you head to the county tax office, know how Texas's 2025 inspection reform works:

• Safety Inspections Ended January 1, 2025: Under House Bill 3297 (88th Legislature), non-commercial vehicles are no longer required to obtain a safety inspection prior to registration as of January 1, 2025. Instead, an Inspection Replacement Fee is collected at the time of registration. (Note: While an older DPS vehicle-inspection web page still mentions annual inspections, current TxDMV guidance and the statute's history show safety inspections have ended for non-commercial vehicles; commercial vehicles still require a passing inspection.)
• 17 Counties Still Require an Emissions Inspection: If you move to one of Texas's 17 designated emissions counties, your vehicle must pass an emissions test before you can register it. Those 17 counties are Brazoria, Collin, Dallas, Denton, El Paso, Ellis, Fort Bend, Galveston, Harris, Johnson, Kaufman, Montgomery, Parker, Rockwall, Tarrant, Travis, and Williamson.

To register your car at the county tax assessor-collector office, bring:

• Proof of Texas auto liability insurance meeting the state minimum of $30,000 per injured person, $60,000 per accident, and $25,000 for property damage.
• Proof of ownership, such as your California title or previous registration.
• A completed Form 130-U (Application for Texas Title and/or Registration).
• Payment for registration fees: the base registration fee for a passenger car or light truck is $50.75, plus the Inspection Replacement Fee (and emissions fee if applicable) and local county fees of $0 to $31.50. Owners of electric vehicles (EVs) pay an additional $200 per year.

Step 2: Getting Your Texas Driver License (Within 90 Days)

Under Texas Transportation Code Section 521.029(a) and DPS rules, a new resident age 16 or older who holds a valid driver license from another state may drive on that license for up to 90 days after entering Texas. Before those 90 days run out, apply for your Texas driver license by booking an appointment through the DPS online scheduler.

When you go to your DPS appointment, bring:

• Your application, Form DL-14A.
• Proof of U.S. citizenship or lawful presence, proof of identity, and your Social Security number.
• Two printed documents proving Texas residency that show your name and Texas residential address. While DPS normally requires one document to show 30 days of residency, that 30-day rule is waived if you are surrendering a valid, unexpired out-of-state driver license or ID.
• Evidence of Texas vehicle registration and proof of insurance for every vehicle you own.
• You will also take a mandatory vision exam at the DPS office.

What about written and driving tests? You may be exempt from testing if you surrender a valid out-of-state license; confirm with DPS. DPS's "Moving to Texas" page says applicants 18 and older with a valid out-of-state license (or one expired less than two years) are exempt from the knowledge and skills exams, but its newer general application page describes the tests without that carve-out.

Step 3: Registering to Vote in Texas

Once you live in your new Texas county, you can register to vote if you are a U.S. citizen, a resident of the county where you submit the application, at least 18 years old on Election Day, not a convicted felon (unless your sentence, probation, and parole have been fully completed), and not declared totally mentally incapacitated by a court exercising probate jurisdiction.

Voter registration in Texas is county-based. VoteTexas links to a page where you can start a new voter registration application, and mailed applications must be postmarked by the deadline (people already registered in Texas who move can update their registration online through Texas.gov). You must register by the 30th day before Election Day, and under Texas Election Code Section 13.143(a) your registration becomes effective on the 30th day after the application is submitted or on the day you turn 18, whichever is later.

Buying a Home in Texas From California: How to Start Before You Move

You can start reviewing your financing while you still live in California. Getting organized early helps you know your budget before you tour neighborhoods or make an offer.

1. Get Pre-Approved and Verify Remote or Transfer Income

When you buy a primary residence in Texas while living in California, expect your lender to ask how you will earn your income after you move. Ask early what documents they need for your situation:

• Keeping your California job: Ask how your lender wants you to document that you will keep working from Texas.
• Starting a new job in Texas: Ask how your offer letter and start date will be used to document your income.
• Retirement, asset, or self-employment income: Ask which tax returns or statements your lender will want to review.

To review the credit score, down payment, and documentation benchmarks across major loan types, read our guide to the Requirements to Buy a House in Texas.

2. Compare Your Texas Loan Options

Even if you owned a home in California years ago, or if you have never owned a home at all, Texas offers a wide range of financing paths:

• Conventional and FHA Loans: Standard Texas Home Loan Options include conventional mortgages (check Texas Conforming Loan Limits by County (2026)) and government-backed FHA Loans in Texas (see Texas FHA Loan Limits by County (2026)).
• Military and Veteran Programs: Active-duty service members and veterans relocating to Texas can look at VA Loans in Texas or explore state-specific benefits through the Texas Veterans Land Board Home Loan (2026).
• Statewide Down Payment Assistance: First-time buyers (defined by most programs as not having owned a primary residence in the past three years), repeat buyers in certain programs, and public-service professionals can explore the My First Texas Home Program, the My Choice Texas Home Program, Homes for Texas Heroes, and our directory of 58 Texas First-Time Home Buyer Grants & Programs (2026). Buyers apply for state assistance programs through a participating lender, and our team can help you check your eligibility, compare options, and get connected.
• Investment Property Financing: If you are buying a Texas rental property from California rather than relocating yourself, you can review Texas DSCR Loans.

3. Underwrite the Property's Exact Tax Rate

Because Texas property taxes depend on the local combination of taxing units, do not rely on a generic percentage when estimating your monthly payment. Ask your lender or real estate agent to pull the exact parcel's current tax rates from the county appraisal district—and factor in how the $140,000 school homestead exemption will apply once you move in and update your Texas driver license.

Next Steps for Your Move to Texas

Texas's constitution bars a state tax on individuals' net incomes and capital gains, and 2025 median sale prices in the four biggest metros ranged from $305,000 in San Antonio-New Braunfels to $430,000 in Austin-Round Rock-San Marcos. Reviewing your financing before you leave California, then handling your auto insurance, vehicle registration, driver license, and homestead exemption in the right order, can make the move much smoother.

When you are ready to see what you qualify for and compare loan options for your move, our team at Make Texas Your Home is here to help you get started.

Check Your Texas Home Purchase Eligibility