California vs Texas Taxes: Income, Property & Sales

Does California or Texas have lower taxes? We answer that in a variety of ways below:

California vs Texas Income Tax Comparison

	California	Texas
Income Tax Rates & Thresholds	1.00%: $0-$10,099 2.00%: $10,100-$23,942 4.00%: $23,943-$37,788 6.00%: $37,789-$52,455 8.00%: $52,456-$66,295 9.30%: $66,296-$338,639 10.30%: $338,640-$406,364 11.30%: $406,365-$677,275 12.30%: $677,276-$1,000,000 13.30%: $1,000,001+	None
Median Income	$85,300	$74,640
Income Tax Paid On Median Household Income	$16,010	$9,189
Income After Tax Based on Median Household Income	$69,290	$65,451

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California vs Texas Property Tax Comparison

	California	Texas
Average Property Tax Rate	0.66%	1.25%
Average House Price By State	$762,981	$305,497
Average Property Tax Owed Per Year	$5,036	$3,819
Income After Income Taxes & Property Taxes Based On Median State Household Income	$64,254	$61,632

California vs Texas Sales Tax Comparison

	California	Texas
Average State Sales Tax	7.25%	6.25%
Average Local Sales Tax Across the State	1.57%	1.95%
Average Combined Sales Tax Rate	8.82%	8.20%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$5,208	$4,671
Maximum Disposable Income Based on Median Household Income	$59,046	$56,961

After Tax Comparison Earning $40,000 Per Year Filing As Single

	California	Texas
Income Tax Owed	$3,911	$3,040
After Tax Income	$36,089	$36,960
Income After Income & Property Tax	$31,053	$33,141
Maximum Disposable Income After Income, Property & Sales Taxes	$28,536	$30,630

After Tax Comparison Earning $60,000 Per Year Filing As Single

	California	Texas
Income Tax Owed	$8,171	$5,968
After Tax Income	$51,829	$54,032
Income After Income & Property Tax	$46,793	$50,213
Maximum Disposable Income After Income, Property & Sales Taxes	$43,001	$46,408

After Tax Comparison Earning $80,000 Per Year Filing As Single

	California	Texas
Income Tax Owed	$14,351	$10,368
After Tax Income	$65,649	$69,632
Income After Income & Property Tax	$60,613	$65,813
Maximum Disposable Income After Income, Property & Sales Taxes	$55,701	$60,826

After Tax Comparison Earning $100,000 Per Year Filing As Single

	California	Texas
Income Tax Owed	$20,611	$14,768
After Tax Income	$79,389	$85,232
Income After Income & Property Tax	$74,353	$81,413
Maximum Disposable Income After Income, Property & Sales Taxes	$68,327	$75,243

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	California	Texas
Income Tax Owed	$11,423	$8,481
After Tax Income	$88,577	$91,519
Income After Income & Property Tax	$83,541	$87,700
Maximum Disposable Income After Income, Property & Sales Taxes	$76,770	$81,054

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	California	Texas
Income Tax Owed	$25,573	$18,536
After Tax Income	$124,427	$131,464
Income After Income & Property Tax	$119,391	$127,645
Maximum Disposable Income After Income, Property & Sales Taxes	$109,715	$117,972

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	California	Texas
Income Tax Owed	$41,223	$29,536
After Tax Income	$158,777	$170,464
Income After Income & Property Tax	$153,741	$166,645
Maximum Disposable Income After Income, Property & Sales Taxes	$141,280	$154,016

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	California	Texas
Income Tax Owed	$57,792	$41,455
After Tax Income	$192,208	$208,545
Income After Income & Property Tax	$187,172	$204,726
Maximum Disposable Income After Income, Property & Sales Taxes	$172,002	$189,211

FAQ

Does California or Texas have lower income taxes?

California’s income tax falls into the following range:

• 1.00%: $0-$10,099
• 2.00%: $10,100-$23,942
• 4.00%: $23,943-$37,788
• 6.00%: $37,789-$52,455
• 8.00%: $52,456-$66,295
• 9.30%: $66,296-$338,639
• 10.30%: $338,640-$406,364
• 11.30%: $406,365-$677,275
• 12.30%: $677,276-$1,000,000
• 13.30%: $1,000,001+

Whereas Texas’s income tax is the following None

Does California or Texas have lower property taxes?

California has an average property tax rate of 0.66%

In comparison, Texas has an average property tax rate of 1.25%

Does California or Texas have lower sales taxes?

California has a state sales tax rate of 7.25% and an average local rate of 1.57% for a combined total rate of 8.82%.

In contrast, Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

Do you get to keep more money in California or Texas?

Based on median household income after income, property and sales taxes California gives you a maximum amount of disposable income of $59,046

In comparison, Texas gives you $56,961.

More Comparisons:

California vs Florida
California vs New York
California vs Pennsylvania
California vs Illinois
California vs Ohio

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/