California
0.7%
Effective rate · rank #32
- Per $100k
- $700
- $500k annual
- $3,500
- $500k monthly
- $292
Compare different states
2026
2026California vs Texas Property Tax
California has the lower effective property tax rate by 0.7%. Compare annual and monthly estimates, ownership ladders, homestead caveats, and buyer checklists.
By Sammy S. · Founder · AuthorUpdated for 2026
Lower effective rate
California is lower
0.7% lower, an estimated $3,500 annual difference on a $500,000 home.
Side-by-side property tax scoreboard
Texas
1.4%
Effective rate · rank #7
- Per $100k
- $1,400
- $500k annual
- $7,000
- $500k monthly
- $583
Property tax by home value
Statewide effective-rate estimates before local rules and exemptions.
| Home value | California | Texas | Annual difference |
|---|---|---|---|
| $200,000 | $1,400 | $2,800 | $1,400 |
| $300,000 | $2,100 | $4,200 | $2,100 |
| $500,000 | $3,500 | $7,000 | $3,500 |
| $750,000 | $5,250 | $10,500 | $5,250 |
| $1,000,000 | $7,000 | $14,000 | $7,000 |
$200,000 home
California$1,400
Texas$2,800
Difference: $1,400/year
$300,000 home
California$2,100
Texas$4,200
Difference: $2,100/year
$500,000 home
California$3,500
Texas$7,000
Difference: $3,500/year
$750,000 home
California$5,250
Texas$10,500
Difference: $5,250/year
Home price matters
At $500,000, the estimated annual gap is $3,500. A lower-rate state can still have a higher bill if homes cost more.
Local rates vary
County, city, school, and special-district levies can make two addresses in the same state materially different.
Ten-year illustration
Holding value and rates constant, the $500,000-home gap totals about $35,000 over ten years.
Key finding — California vs Texas property tax
California (0.7%) vs Texas (1.4%): California is lower by 0.7% — about $3,500/year on a $500,000 home before local rules.
Key takeaways — California vs Texas
- California has the lower effective rate by 0.7% (0.7% vs 1.4%).
- California ranks #32 nationally; Texas ranks #7 (#1 = highest effective rate).
- On a $500,000 home the modeled annual gap is about $3,500 ($35,000 over ten years if rates and value stay constant).
- Compared with the 0.9% unweighted 50-state average: California is below; Texas is above.
- These are ACS owner-occupied effective rates — not your parcel’s millage. Homestead caps and sale-triggered reassessment can flip the practical winner.
Annual & monthly estimates — California vs Texas
Statewide effective-rate models before exemptions and local assessment rules. Useful for escrow planning, not a substitute for the parcel record.
$300,000 home
California$2,100/yr
$175/mo
Texas$4,200/yr
$350/mo
Gap: $2,100/year
$500,000 home
California$3,500/yr
$292/mo
Texas$7,000/yr
$583/mo
Gap: $3,500/year
$750,000 home
California$5,250/yr
$438/mo
Texas$10,500/yr
$875/mo
Gap: $5,250/year
Ownership cost ladder ($500k home)
Cumulative tax if home value and statewide effective rates stay constant. Real bills drift with levies and reassessment.
| Hold period | California | Texas | Gap |
|---|---|---|---|
| Year 1 | $3,500 | $7,000 | $3,500 |
| 5-year hold | $17,500 | $35,000 | $17,500 |
| 10-year hold | $35,000 | $70,000 | $35,000 |
| 20-year hold | $70,000 | $140,000 | $70,000 |
How to read this page
California vs Texas property tax in 2026
Homebuyers and relocators comparing California and Texas often start with statewide effective property tax rates — taxes paid as a share of owner-occupied home value. This page uses the Tax Foundation 2026 table built from 2024 American Community Survey data.
California wins on the statewide effective rate by 0.7%. At a $500,000 home value that is about $3,500 less modeled tax per year than Texas — before exemptions and post-sale reassessment.
Open each state profile for rankings, FAQs, and neighbor states, or use the pair picker to swap destinations.
California vs Texas: rate vs reassessment
Texas posts a higher statewide effective rate than California, and Texas has no state income tax — local school and city property levies carry more of the budget.
California Prop 13 can keep long-held homes far below the statewide average. A recent buyer assessed near market value may see a bill much closer to — or above — that statewide average than a long-held neighbor does.
Always model the buyer’s post-sale taxable value in both states rather than copying the seller’s last bill.
What these effective rates mean
Statutory millage is not comparable across states when assessment ratios differ. A 20-mill levy on 50% of market value is not the same burden as 20 mills on 100% of market value.
Effective rates solve that by dividing real estate taxes paid by owner-occupied housing value in ACS data. They are the fair cross-state benchmark for relocation screening — not a substitute for the assessor’s parcel record.
California benchmarks at 0.7% (rank #32); Texas at 1.4% (rank #7). Each 1% of effective rate equals about $1,000 per year per $100,000 of home value.
When the California advantage can reverse
Sale-triggered reassessment and assessment caps (including California Prop 13–style limits and Florida homestead caps) can make a new owner’s bill look nothing like the prior owner’s.
Investor or second-home classification can lose homestead relief or face higher assessment ratios (South Carolina’s 4% vs 6% owner vs investor split is a sharp example).
Home prices matter as much as rates: a lower-rate state with much higher median prices can still produce a larger dollar bill than a higher-rate, lower-price market.
Budgeting ownership in California vs Texas
On $500,000 of home value, California models about $3,500/year ($292/month) vs Texas at $7,000/year ($583/month).
Mortgage escrow estimates are forecasts: the first full tax year after purchase often differs once the assessor posts the buyer’s taxable value.
Qualifying real estate taxes may be itemized federally as part of SALT, subject to the current annual limit — a deduction reduces taxable income, not the property tax bill itself.
Planning tips for this comparison
Model the buyer’s bill
Copying the seller’s last tax bill understates cost when caps reset at sale.
Separate rate from price
A lower effective rate on a much more expensive home can still cost more dollars.
Stack other taxes
No-income-tax states often lean on property and sales tax — compare total household burden.
Budget levy drift
Local governments reset millage annually; a 2–4% annual increase assumption is a common conservative plan.
Who this California vs Texas comparison helps
Useful if…
- •Buyers choosing between homes in California and Texas.
- •Remote workers and retirees screening relocation destinations by housing tax cost.
- •Anyone comparing annual escrow / ownership carrying costs across state lines.
- •Investors estimating how owner-occupied benchmarks differ from investor classification.
Confirm locally if…
- •You need a binding tax estimate for a specific parcel or closing disclosure.
- •Homestead, senior, veteran, or disability exemptions dominate your bill.
- •You are buying an investment or second home that loses owner-occupant relief.
- •County or school-district outliers are far from the statewide average.
California vs Texas buyer checklist
Before treating the statewide rate gap as a closing-cost forecast.
- 1Confirm California 0.7% vs Texas 1.4% (ranks #32 and #7).
- 2Size the gap at your expected purchase price using the home-value table.
- 3Ask whether sale triggers reassessment or resets an assessment cap.
- 4List county, city, school, and special-district levies on the parcel record.
- 5Verify which homestead or other exemptions you can claim after closing.
- 6Open the California and Texas profiles, then run the property tax calculator for a planning estimate.
Rates shown as 0.7% (CA) vs 1.4% (TX).
Glossary for this comparison
- Effective property tax rate
- Property taxes paid ÷ owner-occupied home value (ACS), expressed as a percent — the cross-state benchmark used on this page.
- Assessed / taxable value
- The value the assessor uses after ratios, classifications, and caps. Often differs from market value.
- Homestead exemption
- Owner-occupant relief that reduces taxable value or tax due. Often unavailable to investors and may reset after a sale.
- Assessment cap
- Rules that limit how fast taxable value can rise for continuing owners. Sales often reset value toward market.
California vs Texas property tax FAQs
California has the lower effective rate by 0.7%. The Tax Foundation benchmark is 0.7% in California and 1.4% in Texas.
The estimated annual difference is $3,500, before local assessment rules and exemptions.
No. Property taxes are local. County, city, school district, assessment class, exemptions, and reassessment timing can materially change a bill.
It compares real estate taxes paid with owner-occupied housing value. It is useful across states because statutory millage and assessment ratios are not directly comparable.
Yes. Homestead, senior, veteran, disability, agricultural, and assessment-cap programs can reduce taxable value or tax due. Eligibility varies by state and locality.
California has the lower statewide benchmark, but the actual housing-cost winner depends on home prices and the exact taxing jurisdiction.
About $2,100 in California vs $4,200 in Texas — a $2,100 annual gap at statewide rates.
On a $500,000 home, roughly $292/month in California vs $583/month in Texas — about $292 per month at statewide rates.
California at 0.7% is below the 0.9% unweighted average of the 50 statewide rates; Texas at 1.4% is above.
Open the California profile (/property-tax-by-state/california) and Texas profile (/property-tax-by-state/texas) for rankings, FAQs, and neighbor comparisons, or use the property tax calculator for a custom home value.
SALT itemizing can soften the after-tax cost of property tax for itemizers subject to the federal limit, but it does not change which state has the lower statewide effective rate or lower local levy.
Related tools
Property tax calculatorHome value + rate + exemption dollarsTotal tax burden by stateIncome, sales, and property togetherHomeownership cost by stateACS owner costs, insurance, taxesRent vs buy by statePrice-to-rent and ownership gapUS retiree tax destinationsSS + RMD vignette with property-tax estimatesRetirement taxes by stateSocial Security, pensions, estate taxes
Compare another pair
Compare any two states
Effective rates, annual estimates, monthly cost, and homeowner caveats.
Related property tax comparisons
Effective owner-occupied housing benchmarks only. Verify local assessed value, levies, exemptions, and post-sale reassessment before relying on an estimate.