California vs. Texas
On a $75,000 salary, you keep about $3,750 more a year in Texas. Prices are 14% higher in California, so after adjusting for cost of living Texas comes out ahead.
Last verified November 2, 2026.
| California | Texas | |
|---|---|---|
| State income tax | Has a graduated income tax with 9 brackets, from 1% up to 12.3% on taxable income over $742,953 for single filers. | Does not tax wages, so there is no state income tax withheld from paychecks. |
| Minimum wage | $16.90 | $7.25 |
| Price level (U.S. = 100) | 110.7 | 97.1 |
| Employer cost on a $50,000 hire | $5,147 | $4,500 |
| SUTA wage base | $7,000 | $9,000 |
Take-home pay at the same salary
| Salary | California take-home | Texas take-home | Difference |
|---|---|---|---|
| $50,000 | $40,665 | $42,355 | $1,690 more in Texas |
| $75,000 | $57,843 | $61,593 | $3,750 more in Texas |
| $100,000 | $72,825 | $79,180 | $6,355 more in Texas |
| $150,000 | $102,136 | $113,791 | $11,655 more in Texas |
Single filer, standard deduction, tax year 2026. Excludes local income taxes.
Adjusted for cost of living
Using BEA regional price parities, $57,843 in California buys what $52,243 buys in an average-priced state, and $61,593 in Texas buys what $63,460 does. To keep the same buying power moving from California to Texas, a $75,000 salary would need to be about $65,745 before the tax difference.
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Frequently asked questions
- Is California or Texas better for take-home pay?
- On $75,000, you keep about $3,750 more a year in Texas. Adjusted for prices, Texas comes out ahead by $11,218.
- Which state is cheaper for employers, California or Texas?
- Employer taxes and insurance on a $50,000 hire are about $5,147 in California and $4,500 in Texas.