Compare the tax picture, not one headline.

Texas does not tax individual income at the state or local level. That can matter for some households, but it does not make every move less expensive: housing, locally set property taxes, insurance and your personal tax circumstances belong in the same comparison.

Austin Tech Relocation editorial guide7 minute guidePrepared October 26, 2026

Start with residency, tax year and the income that matters to you.

Texas has no state or local individual income tax. California and New York impose state personal income taxes; New York City residents may also owe city income tax. Washington currently has no general individual income tax on wages, but it does tax certain long-term capital gains. A separate Washington law establishes a 9.9% tax beginning January 1, 2028 on individuals and married couples filing jointly whose annual adjusted gross income exceeds $1 million, subject to the law’s definitions, exclusions and implementation guidance. That means “no income tax” is not a timeless Washington comparison for a high-income household planning a long-term move. Compare the applicable tax year, residency, work location, income type, equity timing and federal rules with a qualified tax professional before changing residency or selling assets.

The property-tax bill is local.

Texas has no state property tax. Counties, school districts, cities and special-purpose districts set or levy local property taxes. For a $3,000,000 taxable value, each 0.1 percentage point of combined local tax rate equals $3,000 per year before any exemptions or appraisal limitations. This is a sensitivity example, not a quoted Austin-area rate or property tax estimate. Use the parcel’s current taxing units and adopted rates.

Check homestead eligibility and the appraisal limitation.

Texas school districts must provide a $140,000 residence homestead exemption under the current rule reviewed October 26, 2026; local optional exemptions may also apply. Eligibility depends on ownership and principal-residence requirements and generally requires an application with the county appraisal district. A qualifying homestead may have a 10% annual appraisal increase limitation after the first qualifying year, with statutory conditions and new improvements treated separately. Confirm the current tax year, filing status and parcel record with the appraisal district.

Check special districts and protest dates.

Some homes are within municipal utility districts or other special-purpose districts; new developments may also have public improvement district assessments. These are property-specific obligations, not a statewide neighborhood surcharge. Review the current tax rate, debt, service plan and disclosures. If you dispute an appraisal, the usual protest deadline is May 15 or 30 days after the appraisal notice was mailed, whichever is later; verify the date on your own notice and current Comptroller guidance.

Make a four-state comparison with your own inputs.

Compare the same household, income types, tax year, likely home price, annual property-tax units, insurance, housing and transaction timeline in California, Washington, New York and Texas. California and New York have state income taxes; New York City residents should include city tax. Washington has a tax on certain long-term capital gains and, under a law effective in 2028, an individual income tax for households above a specified income threshold. Keep wages distinct from stock compensation, realized gains and investment income. Do not use a statewide average as the tax quote for a specific property or a substitute for individualized advice.

SOURCES & FURTHER READING

Texas Comptroller: Property Tax System Basics ↗Texas Comptroller: Residence homestead exemptions ↗Texas Comptroller: Appraisal protests and appeals ↗Texas Comptroller: Special purpose districts ↗Washington DOR: individual income tax law effective 2028 ↗Washington Department of Revenue: capital gains tax ↗California Franchise Tax Board: 2026 tax rates and updates ↗New York Department of Taxation: 2026 withholding tax changes ↗

Questions people ask.

Does Texas have a state personal income tax?

Texas does not impose a state or local personal income tax. That does not determine a household’s total tax result, which can depend on residency, income type, other states and federal rules.

Is Washington still a no-income-tax state for a high-income household moving in 2028?

Washington currently has no general individual income tax on wages, but it taxes certain long-term capital gains. A law effective January 1, 2028 establishes a 9.9% tax for individuals and married couples filing jointly with annual adjusted gross income above $1 million, subject to statutory definitions, exclusions and implementation guidance. Compare tax years and ask a qualified tax professional how residency, income type and the law apply to you.

How much property tax would a $3 million Austin home cost?

There is no single Austin-area rate. For each 0.1 percentage point of combined local tax rate, $3 million of taxable value equates to $3,000 per year before exemptions or appraisal limitations. Use the actual parcel taxing units and current rates; this sensitivity example is not a quote.

Does the Texas homestead exemption apply automatically?

No. Eligibility depends on ownership and principal-residence requirements and an application with the county appraisal district. Confirm the current rules and your parcel’s status directly.

When is the Texas property appraisal protest deadline?

The usual deadline is May 15 or 30 days after the appraisal district mails the notice, whichever is later. Check the notice and current Comptroller guidance because exceptions and property-specific details can apply.

How does Texas compare with California, Washington and New York for taxes?

Texas has no state personal income tax, while California and New York tax personal income. Washington has no general wage income tax today, but a 9.9% tax on specified Washington taxable income takes effect in 2028 above a $1 million standard deduction/threshold under the new law. The household result depends on domicile, income type, equity timing, deductions and the tax year. Compare your actual facts with a tax professional; this guide does not estimate personal savings.

How do MUDs and PIDs affect a home’s costs?

A Municipal Utility District may levy its own property tax and debt-related charges; a Public Improvement District may use assessments to repay specified improvements. Whether either applies depends on the parcel and its governing records. Check the current tax statement, district rate/debt information, assessment disclosures and title documents for the exact property.

Should I protest my appraisal every year?

There is no automatic yes or no. Review the appraisal notice, comparable evidence, deadlines and potential effect on any appraisal limitation each year. The appraisal district and Comptroller explain the process; consult a qualified tax or property-tax professional about your facts.