Moving to Texas
New residents have 90 days to get a Texas driver license and must register a car within 30 days. Prices are 2.9% below the U.S. average, and there is no state income tax on wages. 307,240 households moved here from other states in 2022–2023, most often from California and Florida.
New resident checklist for Texas
Driver license
Within 90 days; knowledge and skills exams waived for adults with a valid out-of-state license (or one expired 2 years or less); you must show Texas vehicle registration and insurance for each vehicle you own. Bring proof of identity, your Social Security number and two proofs of your Texas address.
Vehicle title and registration
Register within 30 days at the county tax office. No safety inspection for non-commercial vehicles since Jan 1, 2025; emissions test required in 17 counties (Houston, Dallas-Fort Worth, Austin and El Paso areas). Switch your auto insurance to a Texas policy.
Taxes or fees on a car you bring: $90 new-resident tax in place of sales tax, or the difference if your previous state's sales tax was lower than Texas's.
Annual registration: Flat $50.75 base for cars and light trucks + $1 TexasSure fee + $7.50 inspection program replacement fee + local county fees that vary.
Extra yearly fee for an electric vehicle: $200.
Establishing residency
Residency begins when you move to Texas to live there; proof of Texas residency is required for the license. Residency also decides where you pay income tax in the year you move; see taxes the year you move.
Your first-month checklist in Texas
- Register to vote at your new address.
- Update your address with the IRS (Form 8822), your employer and your bank.
- Texas has no state income tax on wages, so ask your employer to stop withholding for your old state from your move date.
- Set up utilities and get renters or homeowners insurance. Owners with a mortgage here paid a median $2,251 a year for homeowners insurance in 2024 (Census ACS); premiums have risen in most states since, so get quotes.
- Keep your lease or closing papers and your license date as proof of when you became a resident.
Still planning the move itself? The moving out of state checklist covers the weeks before you go, and the moving timeline turns your move date into dated deadlines. Our guide to moving with pets covers vet records, travel and local pet rules. Shipping a car? See shipping a car to another state, or take the Where should I move? quiz.
Official site: txdmv.gov. Sources: txdmv.gov (2), dps.texas.gov. Reviewed 2026-09-25. Rules and fees change; confirm with the Texas motor vehicle agency before you go.
Compare your move to Texas
Pick the state you're leaving and your salary to see your take-home pay, rent and the salary that keeps your buying power the same in Texas.
Equal salary in TX: $78,200
To keep the same lifestyle, you need about $78,200 in Texas to match $100,000 in California ($21,800 less), after 2026 taxes and local prices.
Single filer, W-2 salary, standard deduction.
These changes cover taxes, housing and electricity. Food, transport, healthcare, other spending and one-time moving costs are excluded. They are not total savings. State medians may differ from your neighborhood and current quotes.
| Tax on $100,000 | California | Texas |
|---|---|---|
| Federal income tax | $13,170 | $13,170 |
| Social Security + Medicare | $7,650 | $7,650 |
| State income tax | $5,055 | $0 |
| State payroll programs (UI, disability, paid leave, transit) | $1,300 | $0 |
| Take-home pay | $72,825 | $79,180 |
Full reports for the most common moves to Texas: California to Texas, Florida to Texas, Louisiana to Texas, New York to Texas, Colorado to Texas and Illinois to Texas.
Living in Texas: costs, taxes and risk
Of the 51 (the 50 states and D.C.), Texas is in the best 10 for state income tax, and in the worst 10 for homeowners insurance, electric bills and property tax rate.
- Median rent
- $1,475/mo U.S. $1,487
- Cost to own the median home
- $2,188/mo U.S. $2,298
- Take-home on $100,000
- $79,180 $4,102 more than in the median state
- Property tax (effective)
- 1.31% median $4,108/yr
- FEMA risk score
- 91 of 100 Among the highest of U.S. counties
- Moved in from other states
- 307,240 households, IRS 2022–2023
Pros and cons of living in Texas
How Texas ranks among all 51 (the 50 states and D.C.) on 11 measures of costs, taxes, risk and income. Top 10 means among the 10 best for someone moving in, Bottom 10 among the 10 worst.
Where Texas ranks best
- Top 10 Lowest state income tax: no tax on wages, tied with 8 other states for the lowest.
Where Texas ranks worst
- Bottom 5 Highest homeowners insurance: $2,251 a year at the median for homes with a mortgage (Census ACS 2024), 4th highest of 51.
- Bottom 10 Highest electric bills: $164 a month on average (EIA 2024), 6th highest of 51.
- Bottom 10 Highest property tax rate: 1.31% of home value a year, 8th highest of 51.
Measures: state income tax, overall prices, rent, cost to own a home, property tax rate, homeowners insurance, electric bills, car insurance, health premiums, natural hazard risk, household income. State income tax is for a single filer earning $100,000 under 2026 rules, including the average county income tax in Indiana and Maryland. Ties share a rank.
Where new Texas residents come from
In the latest IRS migration data (2022–2023), 307,240 households filed their taxes in Texas after filing in another state the year before. California sent the most, 44,417 households (14% of the total). Texas gained a net 56,473 households from other states that year.
Five-year trend
Moves to Texas from other states peaked in 2021–22 at 327,817 households, then fell 6% to 307,240 in 2022–23, up 20% from 2018–19. Texas gained households from other states on net in all five years.
IRS SOI state-to-state migration files, tax years 2018–19 to 2022–23. Net gain or loss by year: 2018–19 +51,359, 2019–20 +62,667, 2020–21 +82,842, 2021–22 +88,216, 2022–23 +56,473.
Cost of living in Texas vs the U.S.
Overall prices in Texas are 2.9% below the U.S. average, 27th cheapest of 51. The widest gap is in utilities (87.5), 13% below the U.S. level.
The vertical line marks the U.S. average (100). BEA Regional Price Parities 2024.
- Average electric bill
- $164/mo U.S. $142
- Car insurance, per car
- $1,429/yr U.S. $1,282
- Health plan, age 40
- $661/mo U.S. $625
EIA 2024 average residential bills, NAIC 2023 average auto insurance expenditure, KFF 2026 benchmark silver Marketplace premium before subsidies.
Taxes in Texas: take-home pay at three incomes
Texas has no state income tax on wages. Here is what a single filer keeps after 2026 federal and state taxes, compared with the middle of all 51.
| Salary | TX income tax | Take-home | vs. median state |
|---|---|---|---|
| $50,000 | $0 | $42,355 | +$1,577 |
| $100,000 | $0 | $79,180 | +$4,102 |
| $150,000 | $0 | $113,791 | +$6,205 |
Single filer, 2026 tax rules, standard deduction. Take-home is after federal income tax, Social Security, Medicare and Texas income taxes. "vs. median state" is the difference from the median take-home of all 51 at the same salary. For married filing jointly, change the filing status in the calculator above.
The statewide sales tax rate is 6.25% before any local sales taxes. Homeowners pay a median $4,108 a year in property tax, 1.31% of the median home value (property tax by county). Retiring? See how Texas taxes Social Security and pensions. Moving mid-year? Read about taxes the year you move.
Cities in Texas: where a paycheck goes furthest
Of the 7 Texas metro areas we cover, McAllen is the best value: about $63,100 there buys what $75,000 buys in an average-priced area with no state income tax. Dallas takes the most, $77,700.
| Metro area | Salary to match $75k | Price level | Median rent | Median home |
|---|---|---|---|---|
| McAllen | $63,100 | 85.9 | $971 | $164,200 |
| El Paso | $66,200 | 89.9 | $1,081 | $208,800 |
| Killeen | $67,200 | 91.1 | $1,283 | $268,400 |
| San Antonio | $70,400 | 94.7 | $1,422 | $304,800 |
| Austin | $73,300 | 98.1 | $1,784 | $482,800 |
| Houston | $73,800 | 98.6 | $1,469 | $327,400 |
| Dallas | $77,700 | 103.1 | $1,718 | $389,500 |
Salary to match $75k: the pay that leaves the same after-tax, price-adjusted income as $75,000 in an area at U.S. average prices with no state income tax, single filer, including the principal city's own income tax where it has one. BEA 2024 price levels (U.S. = 100) and Census ACS 2024 rent and home values for each metro area.
Housing and home insurance in Texas
| Measure | Texas | U.S. |
|---|---|---|
| Median rent (monthly) | $1,475 | $1,487 |
| Median home value | $313,200 | $360,600 |
| Monthly cost to own the median home (20% down) | $2,188 | $2,298 |
| Income needed to buy the median home | $93,793 | $98,486 |
| Median property tax (yearly) | $4,108 | $3,211 |
| Homeowners insurance (yearly median, homes with a mortgage) | $2,251 | $1,450 |
Census ACS 2024 rent, home value and property tax, and ACS 2024 homeowners insurance. Cost to own: principal and interest at the Freddie Mac 30-year average (6.95%) with 20% down, plus the median property tax and the median homeowners insurance paid by owners with a mortgage. Premiums have risen since 2024, especially in high-risk areas, so get quotes. See buying a home in Texas for other down payments.
Natural disaster risk in Texas
Texas's population-weighted score on FEMA's National Risk Index is 91 of 100, among the highest of U.S. counties and 39th safest of 51. Expected losses from natural hazards average about $424 per resident a year, and about 67% of residents live in counties FEMA rates relatively high or very high.
The vertical line marks the middle of U.S. counties (50).
See disaster risk for every Texas county and how to check a home's risk before you move.
Frequently asked questions
Where do people moving to Texas come from?
In IRS migration data for 2022–2023, 307,240 households moved to Texas from other states. The most came from California (44,417 households), Florida (24,196) and Louisiana (15,068).
What are the pros and cons of living in Texas?
Where Texas ranks best among the 50 states and D.C.: lowest state income tax, tied with 8 other states for the lowest. Where it ranks worst: highest homeowners insurance, 4th highest of 51; highest electric bills, 6th highest of 51; highest property tax rate, 8th highest of 51.
Is Texas expensive to live in?
Overall prices in Texas are 2.9% below the U.S. average (BEA price level 97.1, 2024), 27th cheapest of 51. Median rent is $1,475 a month and the median home is worth $313,200.
How long do I have to get a Texas driver license after moving?
90 days after becoming a resident. Within 90 days; knowledge and skills exams waived for adults with a valid out-of-state license (or one expired 2 years or less); you must show Texas vehicle registration and insurance for each vehicle you own.
How long do I have to register my car in Texas?
30 days. Register within 30 days at the county tax office. No safety inspection for non-commercial vehicles since Jan 1, 2025; emissions test required in 17 counties (Houston, Dallas-Fort Worth, Austin and El Paso areas).
Do new residents pay tax on a car brought to Texas?
$90 new-resident tax in place of sales tax, or the difference if your previous state's sales tax was lower than Texas's.
What makes me a Texas resident?
Residency begins when you move to Texas to live there; proof of Texas residency is required for the license.