Texas has been the largest net importer of US population for over a decade. The reasons are real: no state income tax, big economies in Houston, Dallas, Austin, and San Antonio, and housing that's still meaningfully cheaper than the coasts. The catches are also real: high property taxes, brutal summers, and an electrical grid that has visible failure modes.
The tax math
Texas levies no state income tax. That's the headline. The bill it makes up for it with is property tax: the effective property-tax rate is about 1.74% of assessed value (Tax Foundation 2024) — second-highest in the country after New Jersey and Illinois.
If you're a renter, you pay this indirectly via rent. If you're a buyer, do the math: on a $400k home, expect about $7,000/year in property taxes vs. $2,800 in California (which has lower effective property tax but a 13.3% top income tax bracket).
Sales tax is 6.25% state plus up to 2% local — total cap 8.25%.
Where to actually live
The four big metros each have a distinct flavor:
- Austin — Tech transplants, music, bike infrastructure, growing pains. Most expensive in the state.
- Dallas–Fort Worth — Corporate HQs, sports, sprawl, more affordable than Austin.
- Houston — Energy, food, no zoning (literally), most diverse population in TX.
- San Antonio — Riverwalk, military, lowest cost of living of the big four.
Smaller markets gaining transplants: Round Rock, Frisco, McKinney, Plano, The Woodlands.
What surprises people
- Toll roads. Plan for ~$50–80/month in commuting tolls if you're in DFW.
- Property tax appraisals creep. Appraisal districts re-assess annually, and protests are common practice — budget for it.
- Power grid. ERCOT operates Texas's grid in isolation from the rest of the US. The 2021 freeze and rolling outages were not a one-off.
- Vehicle inspection. Texas requires safety inspection in most counties; not all states do.
DMV deadlines
You have 30 days to register your vehicle in Texas after moving, and 90 days to transfer your driver's license. Source: Texas DPS.