Moving from California to Austin changes three big things right away: you stop paying state income tax, you start paying higher property taxes, and your money usually buys a lot more house. The heat, the traffic and how you actually buy a home here are different too. As an Austin real estate agent, I get these questions from California buyers all the time, so here’s the honest version before you pack a single box.
Key takeaways
- Texas has no state income tax, but Austin-area property taxes run higher than most Californians are used to.
- The City of Austin’s median home price was $560,000 in August 2026, well under California’s statewide median.
- Summers are long and hot. Plan your move, your yard and your budget around it.
- Where to live in Austin Texas comes down to commute, space and the lifestyle you want.
- Buying in Texas works a little differently, starting with the option period.
How many people are moving from California to Austin?
A lot. About 98,000 Californians moved to Texas in 2023, and Travis County was one of the top two destinations, drawing more than 10,000 of them (StorageCafe, using U.S. Census data). Travis County was the number one landing spot for people leaving Los Angeles County.
So if you’re thinking about it, you’re in good company. You’ll meet plenty of other transplants at the coffee shop, and honestly, half of Austin is from somewhere else. (I’m from Iowa, so I get it.) Where are you moving from?
Is Austin real estate cheaper than California?
For most people, yes, by a lot. California’s statewide median home price was $887,680 in July 2026 (C.A.R. data via The Norris Group). In August 2026, the median price in the City of Austin was $560,000, and across the whole Austin metro it was $412,000 (Unlock MLS).
Austin Texas real estate has also cooled. That same report showed City of Austin prices down 4.3% from a year earlier, with 4.6 months of inventory. In plain English: buyers have more choices and more room to negotiate than they did a few years ago. Builders are offering incentives too, including rate buydown programs through partner lenders, especially near the end of the year.
My tip: don’t compare price per square foot to what you’d get back home and get excited. Compare the total monthly cost, because that’s where Texas surprises people.
Does Texas really have no state income tax?
Yes. Texas doesn’t have a personal income tax (Texas Comptroller). For a lot of Californians, that’s the single biggest reason to move.
Here’s the catch: Texas funds a lot through property taxes. Under California’s Prop 13, you’re probably used to a low tax bill tied to your purchase price. In the Austin area, property tax rates are noticeably higher, and newer communities can add a MUD or PID on top. Two homes at the same price can have very different monthly costs.
Some good news: Texas voters approved Proposition 13 in November 2025, raising the homestead exemption for school district taxes from $100,000 to $140,000 (Fox 4). Once you move in, file your homestead exemption with your county appraisal district. It’s free and it saves real money every year.
What I do for my clients: I get the total tax rate and HOA dues for the exact address, in writing, before we write an offer. Want to see the other red flags I check? Read where not to live in Austin Texas.
Where should you live in Austin Texas if you’re coming from California?
It depends on what you’re trading for. Here’s how I break down Austin Texas neighborhoods for people moving from out of state:
- Walkable and close in: Hyde Park, Crestview, Zilker, Bouldin and Travis Heights give you character, local restaurants and a shorter drive downtown. Lots are smaller and prices are higher.
- More house for your money: suburbs like Round Rock, Cedar Park, Leander, Pflugerville and Buda have newer homes, bigger floor plans and master-planned communities with pools and trails.
- Hill Country views and land: Dripping Springs, Driftwood and Lakeway give you space and scenery, with a longer drive into the city.
If you want to see what new construction south of the city looks like, watch my Sunfield lazy river home tour!
What surprises Californians most about Austin?
The heat
Austin averaged 29 days of 100 degrees or more per year from 1991 to 2020, and August is the hottest stretch (KXAN). It’s a different kind of summer than the coast. Shade trees, a covered patio and a good AC system matter more than you’d think. (I’m out of breath just walking to my car in August.)
The traffic
TxDOT is rebuilding I-35 through central Austin, a $4.5 billion project running from 2024 to 2033 (TxDOT). Drive your commute at rush hour before you pick a neighborhood. If you can’t come in person, I’ll drive it for you and FaceTime you from the car.
The water
No ocean, but we have lakes, rivers and swimming holes. Lake Travis, Barton Springs and Lady Bird Lake are where you’ll spend summer weekends. Fair warning: you’ll start calling 75 degrees “chilly.”
How is buying a home in Texas different from California?
A few things will feel new. In Texas, most buyers pay an option fee for an option period, a set number of days to do inspections and walk away for any reason. Closings are handled by a title company instead of an escrow company. And with our clay soil, a good foundation inspection is a must on resale homes.
You can do most of it from California. I do video walkthroughs, I’ll tell you what the listing photos don’t show, and I’ll see the house at night for you to check for glaring lights and noise. One of my relocation clients said it best: “She treated me like family from day 1 and made me feel like i was her only client.” (Jordan, Google review)
My honest take on moving from California to Austin
Here’s what I’d actually do. Pick two or three areas, not ten. Visit once for a long weekend and drive them at rush hour. Get the real monthly cost on every home you love, taxes and HOA included. And don’t rush into the first new construction deal you see, because the lot matters as much as the house.
Austin isn’t perfect. It’s hot, it’s growing fast and the roads are a work in progress. But you’ll get more space, real seasons of patio weather and a city full of people who also took a chance on something new. That’s your call, of course. I’ll just give you all the pros and cons so you can make it with the facts.
FAQ
Is it cheaper to live in Austin than California?
For housing, usually yes. The City of Austin’s median home price was $560,000 in August 2026, compared with a California statewide median of $887,680 in July 2026. Property taxes are higher in Texas, so compare total monthly costs, not just price.
Does Texas have a state income tax?
No. Texas doesn’t have a personal income tax, which is one of the biggest reasons people move from California to Austin.
Are property taxes higher in Austin than in California?
Usually, yes. Austin-area property tax rates are higher than what most Californians pay under Prop 13, and some newer communities add a MUD or PID. Texas raised the school district homestead exemption to $140,000 in 2025, so file for it once you move in.
Where do people from California live in Austin?
All over. Close-in Austin Texas neighborhoods like Hyde Park, Zilker and Travis Heights are popular for walkability, while suburbs like Round Rock, Cedar Park and Buda offer newer homes and more space. Dripping Springs and Lakeway offer Hill Country views and land.
How hot does it get in Austin?
Hot. Austin averaged 29 days of 100 degrees or more per year from 1991 to 2020, with most of them in July and August.
Thinking about the move?
Grab my free Austin relocation guide. It walks through every Austin Texas neighborhood and suburb, plus my insider tips: get the guide here. Or text me at 563.650.0452. I actually answer!
Connect with Sarah
- Watch Austin home tours on YouTube: https://www.youtube.com/@sarahsellsATX
- Instagram: https://www.instagram.com/sarahsellsatx/
- Facebook: https://www.facebook.com/SarahsellsATX/
- LinkedIn: https://www.linkedin.com/in/sarahmaddali/
- Google reviews: https://share.google/GN08gDCGmLE0XDQZK
- Compass profile: https://www.compass.com/agents/sarah-maddali/
Sarah Maddali, REALTOR® | Serendipity Realty Group at Compass | 563.650.0452 Serendipity Realty Group is a real estate team affiliated with Compass. Equal Housing Opportunity.