Moving to a state
Moving to Texas in 2026: Costs, Taxes and Is It Worth It
By Sol Lakein, founder of Slower Sundays. Published November 10, 2026.
Is Texas a good place to live?
Texas has four big metros, Dallas-Fort Worth, Houston, San Antonio and Austin, and it still adds more residents from other states than almost anywhere else. There is no state income tax on wages. Property tax is how Texas makes up the difference, so the income tax saving shrinks once you own a home.
| Measure | Texas | New York metro |
|---|---|---|
| Everyday prices (US = 100) | 97.1 | 112.6 |
| Housing costs (US = 100) | 96.5 | 148.6 |
| Median listed home | $355,765 | $742,000 |
| Principal and interest a month | $1,955 | $4,078 |
| 2-bedroom rent | $1,533 | $1,997 |
US median listed home: $419,250 (Realtor.com, September 2026). Prices: BEA 2024. Rent: Census ACS 2025. Payment assumes 20% down at 7.32% (Freddie Mac).
Taxes in Texas
- Income tax: nonesource.
- Property tax: 1.32% of home value statewide; the median homeowner pays $4,205 a yearsource.
- Sales tax: 6.25% state, 8.20% with the average local ratesource.
- Social Security: not taxed by the state.
Who is moving to Texas
Texas gained 67,299 residents to moves within the US in 2024-25, 2nd among the 50 states and DC. The recent peak was +218,840 in 2021-22.
| Year | Net domestic migration |
|---|---|
| 2019-20 | +162,299 |
| 2020-21 | +199,360 |
| 2021-22 | +218,840 |
| 2022-23 | +188,667 |
| 2023-24 | +86,067 |
| 2024-25 | +67,299 |
The Texas cities we cover
| Metro | Median listed home | Monthly payment | 2-bedroom rent | Price level | Housing index |
|---|---|---|---|---|---|
| Austin, TX | $446,450 | $2,453 | $1,836 | 98.1 | 120.4 |
| Texarkana, TX/AR | $275,000 | $1,511 | $1,006 | 84.0 | 49.9 |
| Dallas-Fort Worth, TX | $422,495 | $2,322 | $1,794 | 103.1 | 117.9 |
| Houston, TX | $353,995 | $1,945 | $1,562 | 98.6 | 104.5 |
| San Antonio, TX | $320,374 | $1,761 | $1,460 | 94.7 | 94.6 |
| El Paso, TX | $314,987 | $1,731 | $1,100 | 89.9 | 71.2 |
| McAllen, TX | $258,750 | $1,422 | $1,030 | 85.9 | 55.9 |
| New York metro | $742,000 | $4,078 | $1,997 | 112.6 | 148.6 |
Median listed home: Realtor.com via FRED, September 2026. Monthly payment: principal and interest with 20% down at 7.32% (Freddie Mac, week of October 22, 2026), before taxes and insurance. Rent: median gross rent for a 2-bedroom, utilities includedsource. Price level and housing index: BEA regional price parities, 2024, US = 100.
The property tax trade-off
Texas has the 7th-highest effective property tax rate of the 50 states, 1.32% of home value; the median homeowner pays $4,205 a year (Census ACS 2025). Run both numbers before you move: the higher the assessed value of the home you buy, the more property tax offsets the income tax you no longer pay. Renters pay it indirectly through rent. Compare states on property taxes by state and states with no income tax.
Rules once you arrive
- Driver's license: within 90 days of becoming a residentsource.
- Vehicle registration: within 30 dayssource.
Update your driver's license, car registration and voter registration, and file a part-year return in both states for the year you move.
The verdict
Texas is a good place to live if you want big job markets, no state income tax and homes near or below the national median, and you can handle long, hot summers.
Read next: best places to live in Texas, is Houston a good place to live, is San Antonio a good place to live, is Austin a good place to live, or the full cost of living in Texas.