California has consistently been one of the largest sources of people moving to Texas, according to the U.S. Census Bureau's state-to-state migration data. Here's what tends to surprise buyers.
Taxes work differently
Texas has no state personal income tax. Local governments rely heavily on property taxes instead, and Texas property taxes are generally higher as a percentage of value than California's Prop 13-limited rates. When comparing homes, ask for the total tax rate (county, city, school district, and any MUD or special district) and estimate your bill yourself rather than relying on the current owner's bill, which may include exemptions you won't have. Source: Texas Comptroller – Property Tax.
File your homestead exemption
If the home is your primary residence, you can apply for a residence homestead exemption with the county appraisal district, which lowers the taxable value for school taxes and may limit annual appraisal increases. Additional exemptions exist for homeowners 65+ and disabled homeowners. Amounts change by law; check the Comptroller's exemptions page for current figures.
Know about MUDs and HOAs
Many newer suburban neighborhoods are in Municipal Utility Districts, which levy their own tax to pay for water, sewer, and drainage infrastructure. Sellers must provide a MUD notice. HOAs are also common.
Weather and insurance
Instead of earthquakes and wildfire, plan for heat, hail, and in coastal and Gulf areas, hurricanes and flooding. Check FEMA flood maps and get insurance quotes from your own provider before you're under contract.
Different regions, different markets
Houston, Dallas–Fort Worth, Austin, and San Antonio differ in job base, home styles, and prices, and each is surrounded by suburbs with separate school districts and tax rates. A local agent can help you narrow this down.
Selling in California too?
We can connect you with a licensed California agent to sell and a Texas agent to buy. John is licensed in Texas only and doesn't represent you in California.
This guide is general information, not tax or legal advice.