The California to Texas migration is one of the most documented demographic shifts of the last decade. Hundreds of thousands of Californians have made the move, drawn by the same calculation: no state income tax, lower housing costs, a strong job market, and a cost of living that allows families to actually build wealth instead of just maintain it. The Bay Area, Los Angeles, and San Diego have been the top feeder markets, and Austin has been the most common landing spot.
This guide covers what actually changes, what surprises most California families in the first year, how to approach the home search from 1,500 miles away, and why the Hill Country south of Austin keeps showing up as the answer for buyers who want space, terrain, and lifestyle without paying Westlake prices.
Key Takeaways
- Texas has no state income tax. For a household earning $300,000 a year from a high-tax California bracket, the savings can approach $25,000 to $30,000 annually.
- Texas has higher property taxes (typically 1.8 to 2.9 percent of assessed value), but for most California families the income tax savings more than offset them.
- The Austin metro covers more than 4,000 square miles. The neighborhood you choose shapes your life as much as the city itself.
- Dripping Springs, in the Hill Country south of Austin, is a consistent landing spot for California buyers who want new construction and Hill Country terrain at a lower price point than West Austin.
The Financial Case for Leaving California
The numbers are the reason most people start the conversation. Here is what actually changes on the balance sheet.
| California | Texas | |
|---|---|---|
| State income tax | Up to 13.3% | $0 |
| Property tax rate | ~1.1% (Prop 13 capped) | 1.8% to 2.9% |
| New family-size home, sought-after suburbs | $1.2M to $1.5M+ | $550K to $900K+ |
No State Income Tax
California’s top marginal income tax rate is 13.3 percent (a 12.3 percent top bracket plus the 1 percent Mental Health Services Tax on income above $1 million, per the California Franchise Tax Board), the highest in the country. Texas has no state income tax. The savings are not a rounding error. A household earning $300,000 a year saves roughly $25,000 to $35,000 in state income taxes annually, depending on filing status and deductions. That money shows up in your take-home pay immediately, and it changes what a Texas mortgage actually costs in real terms.
Housing Costs
The median home price in the San Francisco Bay Area runs $1.2 million to $1.5 million. In Los Angeles, comparable family homes in good school districts often run $1.2 million and up. In Austin’s most sought-after suburban corridors, a new construction home can be had for $550,000 to $800,000. In Dripping Springs, that range can buy a home on Hill Country terrain.
The equity story is real. Families selling a California home with substantial equity arrive in Austin with a down payment that materially changes their Texas mortgage payment and monthly cash flow.
Property Taxes: The Full Picture
Texas property taxes are higher than California’s, typically running 1.8 to 2.9 percent of assessed value annually. On a $700,000 Texas home, that’s $12,600 to $20,300 per year. California’s property tax rate is much lower. Proposition 13 caps the base rate at 1 percent of assessed value, and voter-approved local bonds typically bring a new buyer’s effective rate to roughly 1.1 to 1.35 percent. Assessed value does not reset until the home changes hands, so long-tenured owners often pay far less. That difference is real and should go into your calculation. For most families earning above $200,000, the income tax savings still come out ahead by a meaningful margin. But plan for it rather than be surprised by it.
Texas also offers a homestead exemption that reduces the taxable value of your primary residence. File for it in your first year. It is not automatic.
What Actually Changes When You Move to Texas
Beyond the balance sheet, California families tend to hit a handful of genuine lifestyle adjustments in the first year.
The summers. Texas summers are hot in a way that California’s coast does not prepare you for. June through September regularly sees triple-digit temperatures in Austin. Homes are built for it, pools become a legitimate quality-of-life line item, and most families adjust within a season. But plan for it and budget for a pool if outdoor summer living matters to your family.
For families who land in Dripping Springs, the summer picture looks different than it does in a flat suburb. Double L Ranch’s planned resort-style pool is designed to give residents a gathering spot close to home. Nearby Hill Country swimming holes and a short drive to lake recreation mean water-based outdoor living can be part of everyday life, not just a weekend trip. Many California transplants find that the Hill Country summer, with evenings on the patio and weekends at the water, ends up being one of the genuine surprises that keeps them from looking back.
The scale. The Austin metro is physically large. Coming from a dense California metro, the distances feel different at first. A 30-minute drive to the grocery store is normal and accepted. People don’t think twice about a 25-mile one-way commute. The geography recalibrates quickly.
The hospitality. People wave at neighbors they don’t know. They hold doors, start conversations, and introduce themselves. Relocating Californians consistently list this as the biggest positive surprise of the move. It is not performative. Texas has a distinct conversational culture and it shows up every day.
The logistics. Texas requires a state driver’s license within 90 days of establishing residency. Vehicles must be inspected and registered within 30 days. Electricity is deregulated, meaning you choose your provider. For the first year after you move, you’ll also file a split-year federal return and a final California state return. Using a CPA who handles interstate moves is worth the cost.
Choosing Where to Land in the Austin Metro
Austin is not a single place. The metro spans more than 4,000 square miles, and the difference between Cedar Park and Dripping Springs is not just geography. It’s terrain, school landscape, community character, and what your daily life actually looks like. The four broad zones:
- Hill Country South (Dripping Springs, Wimberley): Genuine Hill Country terrain, new master planned communities at price points below West Austin, and about 30 minutes to downtown via US 290. A growing corridor for relocating buyers, with space, genuine Hill Country terrain, water access (Hill Country swimming holes and a short drive to lake recreation), and a home price that is not a lateral move from what they left.
- West Austin / Hill Country West: Eanes ISD and Lake Travis ISD. Some of the highest home prices in the metro. Premium in every dimension.
- North Austin suburbs (Leander, Cedar Park, Round Rock): More affordable new construction and strong employment access. A practical option for buyers who need to be north of the city for work.
- Central Austin: Urban, walkable, expensive per square foot. AISD schools vary by campus. Best for buyers who prioritize city access and lifestyle over space.
Photo: Michael Zuber / CC BY 2.0
The Practical Moving Timeline
For California families planning a Texas move, this is the sequence that works:
- ✓ 12 to 9 months out: Decide on the Austin metro zone that fits your priorities. Get pre-approved for a Texas mortgage. Plan a dedicated scouting trip of at least 4 to 5 days.
- ✓ 9 to 6 months out: Narrow to two or three communities. Tour in person. Verify school zoning lot by lot. Research movers who specialize in interstate moves.
- ✓ 6 to 3 months out: Contract on a home. Schedule California home sale if applicable. Notify children’s schools and request transfer records. Engage a CPA who handles interstate moves.
- ✓ After move-in: Get a Texas driver’s license within 90 days. Register vehicles within 30 days. File for Texas homestead exemption on your primary residence. Set up Texas electricity provider (deregulated market, you choose). File a final California state tax return for the partial year.
Why Dripping Springs Keeps Coming Up for California Families
When California families run through the relocation framework above, Dripping Springs consistently surfaces as the Hill Country answer. Here’s why the math works:
The terrain is real.
California families coming from Marin County, the Santa Cruz mountains, or the foothills around Los Angeles recognize the Hill Country immediately. Rolling oak-covered terrain, long views, and a sense of natural scale that flat suburbs don’t have. The setting is not a marketing claim. It’s part of why this corridor has retained its open Hill Country character.
The commute has improved.
The Oak Hill Parkway reconstruction is substantially complete, according to TxDOT, with mainlanes, frontage roads and ramps open and finishing work still under way. Drivers can now travel through the Oak Hill corridor on freeway-grade mainlanes without signal stops, and the bottleneck that defined the old commute is gone. The drive from Dripping Springs to downtown Austin is about 30 minutes under normal morning conditions.
The price still works.
Comparable new construction in the communities California families leave behind costs two to three times more. Even at premium Dripping Springs pricing, the home purchase, the tax savings, and the equity position over five years present a materially better financial picture than staying.
Where Double L Ranch Fits
For California buyers planning a move to the Hill Country, Double L Ranch is a Dripping Springs community worth knowing. At 1,677 acres on the western edge of Dripping Springs, the community is designed around the Hill Country terrain that California families recognize: rolling topography, mature oak canopy, and long views across the landscape.
Double L Ranch is currently served by Dripping Springs ISD. School assignments are determined by the district and are subject to change; see Dripping Springs ISD for current attendance zones. A select group of Hill Country builders is expected to offer a range of home styles and floor plans within the community. Planned community amenities include a resort-style pool, trails, a park, and a community pavilion designed for community events and outdoor recreation. Home construction is anticipated to begin in phases, with community amenities planned to deliver over subsequent phases. For families making the California to Texas move, this is the scale and setting that makes Dripping Springs worth the trip to see in person.
No affiliation or sponsorship is intended or implied with the companies mentioned/listed, and all trademarks are owned by the respective trademark owners. All home and landscaping plans are subject to terms and conditions of the Double L Ranch Declaration of Covenants, Conditions and Restrictions. Photos may depict upgraded landscaping/options and display decorator items/furnishings not available for purchase and may not represent lowest-priced homes. Photos/videos do not depict racial preference.