Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between California and Texas. Updated for 2026.
California and Texas are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
The monthly payment difference is $2,760/month — that’s $33,120/year or $994K over the life of a 30-year loan. Buying in Texas is the more affordable option based on median home prices with identical loan terms.
Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.
To afford the median home in California, you need a household income of approximately $232K/year. In Texas, you need $114K/year — less by $118K/year. That $118K income gap means Texas is accessible to a significantly wider range of households.
There's a dramatic price gap between these two states. Homes in Texas cost 61% less than in California — that's a difference of $475K on the median home. For buyers relocating from California to Texas, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a California home could fund a much larger down payment in Texas, potentially eliminating PMI and reducing your monthly payment dramatically.
Property taxes are dramatically different: California charges 0.73% while Texas charges 1.8%, a gap of 1.07 percentage points. On the respective median homes, this means Texas homeowners pay roughly $5,580 per year in property taxes versus $5,731 in California. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Homeowners insurance is significantly cheaper in California ($2,200/year) compared to Texas ($3,800/year). That's an extra $1,600 per year — or $133/month — eating into your budget in Texas. Texas's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.
Closing costs are a one-time but significant expense. California averages $9K in closing costs (1.2% of purchase price) while Texas averages $5K (1.7%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. California's CalHFA Dream For All provides Up to 20% shared appreciation loan, while Texas's TDHCA My First Texas Home offers Up to 5% DPA grant. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Texas homes cost $475K less than California on average. That translates to roughly $2,760 less per month in total housing costs if you choose Texas. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.