California vs Texas
California
Property‑Tax Comparison: California vs. Texas
Introduction
Both California and Texas levy property taxes that fund local services such as schools, public safety, and infrastructure. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), the two states differ markedly in effective tax rates, home values, and median household incomes. The table below presents the key metrics side by side.
Side‑by‑Side Comparison
| Metric | California | Texas |
|---|---|---|
| Effective property‑tax rate | 0.71 % | 1.58 % |
| Median home value | $695,400 | $260,400 |
| Median annual property tax | $4,926 | $4,111 |
| Property tax on a $250,000 home | $1,771 | $3,947 |
| Property tax on a $500,000 home | $3,542 | $7,893 |
| Median household income | $96,334 | $76,292 |
Sources: California property tax, Texas property tax; data drawn from the U.S. Census Bureau's 2023 ACS (5‑year).
Which State Has the Lower Property‑Tax Rate?
- Winner (lower rate): California – with an effective rate of 0.71 %, it is 0.87 percentage points lower than Texas’s 1.58 % rate.
- Rate difference: 0.87 % (approximately 55.13 % lower than Texas).
- Annual tax difference on a $250,000 home: $2,176 (California $1,771 vs. Texas $3,947).
- Annual tax difference on a $500,000 home: $4,351 (California $3,542 vs. Texas $7,893).
The lower effective rate in California means that, all else equal, property owners pay less of their home value in taxes than owners in Texas.
Audience Considerations
| Audience | Relevance of the Comparison |
|---|---|
| Current homeowners | The table shows the tax burden they would face on homes at common price points ($250 k and $500 k). Homeowners in California would pay less annually for the same property value. |
| Prospective buyers | Buyers can use the effective tax‑rate figures to estimate ongoing costs in each state, adjusting for differences in median home values and household incomes. |
| Retirees | Retirees often prioritize fixed‑income affordability. Although California’s tax rate is lower, the higher median home value may affect overall affordability; the data help evaluate total cost of ownership. |
| Policy analysts | The side‑by‑side metrics provide a concise reference for comparing fiscal policy outcomes across the two states. |
Summary
Based on the most recent ACS estimates, California’s effective property‑tax rate of 0.71 % is lower than Texas’s 1.58 %, resulting in lower annual taxes for comparable home values. The comparison is most useful for homeowners, prospective homebuyers, retirees, and analysts who need to assess property‑tax expenses relative to home values and household incomes in each state.
References
- U.S. Census Bureau, 2023 American Community Survey (5‑year estimates).
- Internal pages: California property tax, Texas property tax.
Explore More Comparisons
Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.