Moving from California to Texas — 55+ Retirement Guide

Why California Buyers Are Moving to Texas

California has the highest state income tax in the country — up to 13.3% for high earners. For a retired couple taking $200,000 in annual distributions from IRAs or 401(k)s, California taxes that at rates that cost $15,000–$25,000/year. Texas takes $0. The arithmetic is relentless. Beyond income taxes, Bay Area, Los Angeles, and San Diego homeowners who purchased before 2015 are sitting on $600,000–$1,500,000+ in home equity. That equity, when converted into a Texas purchase, funds a lifestyle transformation: higher-quality home, no income tax, 55+ amenities, and cash reserves for retirement income.

The Tax Comparison

CA buyers moving to Texas typically see income tax savings that dwarf the property tax increase — particularly for buyers with significant IRA distributions, rental income, or capital gains. The one cost to model carefully: CA capital gains tax on the home sale itself. Consult a CPA before listing your CA home.

What Your California Equity Buys in Texas

Bay Area equity buyers often arrive with $800,000–$1,500,000 in proceeds. In the Austin-San Antonio corridor, this purchases: Trilogy at Rough Hollow outright ($600K–$900K range) with significant cash remaining; a premium Sun City Texas home ($500K–$700K) with $300,000–$800,000 in reserves; or a Kissing Tree home plus investment capital. Southern California buyers with $600,000–$900,000 in equity typically target Sun City Texas or Kissing Tree at the $400K–$600K price point.

Top Community Recommendation for California Buyers

California buyers are the most financially transformed by the Texas move — the income tax savings alone typically exceed $10,000–$20,000/year. Trilogy at Rough Hollow appeals specifically to Bay Area buyers accustomed to premium finishes, lake-adjacent living, and Austin's tech-culture energy. Sun City Texas appeals to buyers who want to maximize the equity deployment and minimize ongoing costs.

Steps Before You List Your California Home

1. Consult a CPA with multi-state experience to model your full tax picture — Texas income tax savings, Texas property tax increase, and any state-specific capital gains considerations on your home sale
2. Research Medicare plan availability in Williamson County (Georgetown) or Hays County (San Marcos) — plans and networks differ from your current state
3. Plan a stay-and-play visit of at least 5–7 days — not a weekend — to experience the Austin-area traffic, heat, and community feel in the actual conditions you will live in
4. Get pre-qualified with a Texas lender; CA jumbo loan standards and Texas lender practices differ
5. Identify replacement specialists in the Austin or San Antonio metro for any medical conditions you are currently managing
6. File Form 50-114 with your county appraisal district within your first tax year to establish homestead and over-65 exemptions

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