What Should You Know Before Moving to Austin from California?

Three things surprise California buyers most. First, taxes flip: Texas has no state income tax but higher property-tax rates. Second, the closing process runs through title companies rather than a long escrow with attorneys, and Texas contracts use an option period that gives buyers a short unrestricted termination right. Third, insurance is priced around hail and wind rather than earthquakes. None of these are bad, but they change how you budget and negotiate.

Texas has no state income tax, which is a meaningful change from California's brackets. The trade-off is property tax: effective rates in the Austin area typically run around 1.8 to 2.2 percent of assessed value, versus roughly 1 percent bases common in California. Some newer suburbs add MUD or PID taxes on top. We model the full monthly payment, including taxes and insurance, for every home our relocating buyers consider.

If the home is your primary residence, Texas lets you file a homestead exemption that removes a portion of your home's value from school-district taxation, a $100,000 exemption as of recent legislation, and caps annual increases in your assessed value at 10 percent. Filing is free through the county appraisal district, and there is no legitimate fee to do it. We remind every buyer to file after closing and to ignore the paid-service mailers.

As of mid-2026, the Austin metro's median price sits in the mid $400,000s, dramatically below coastal California metros. Our recent buyer closings show the spread: $267,000 in Kyle, $594,500 in Dripping Springs, $760,000 in Cedar Park, $875,000 in River Place, $995,000 in The Hills of Lakeway, and a central Austin new build at $1,699,950. In other words, most California equity positions open up several distinct tiers of the Austin market.

Texas closings run through title companies, which handle escrow, title insurance, and the closing itself, usually in about 30 days from contract. The standard Texas contract includes an option period, commonly 5 to 10 days purchased for a small fee, during which you can terminate for any reason while inspections happen. That structure differs from California's contingency-removal process, and understanding it changes how aggressively you can write offers.

Texas premiums are driven by hail and wind exposure rather than earthquake risk, and policies commonly carry separate wind and hail deductibles of 1 to 2 percent of dwelling coverage. Rates statewide have risen in recent years, so we tell relocating buyers to get an insurance quote during the option period, not after. Homes near creeks may also need flood coverage, which we flag by checking FEMA maps on every property we show.

It depends on your equity and financing. Some clients sell first and buy with cash-heavy offers, which are strong in Austin's negotiable mid-2026 market. Others buy first using bridge financing, a HELOC, or contingent offers, which Austin sellers accept more readily than they did during the frenzy years. We coordinate timelines with your California listing agent so you are not paying for two households longer than necessary, and lease-backs can bridge short gaps.

It depends on the priorities buyers bring, not where they came from. Those wanting highly rated schools and trail systems often shortlist Southwest Austin, including Circle C Ranch, where our team lives. Buyers focused on Hill Country views look at Dripping Springs and Lakeway, tech commuters look north to Cedar Park and River Place, and value-focused buyers look at Kyle and Buda. We have closed recently in every one of those markets.

Lindsey Fenton, Broker Associate, and Ian Grossman, REALTOR, with Douglas Elliman, specialize in relocation. In the last 12 months we have represented buyers in Dripping Springs at $594,500, The Hills of Lakeway at $995,000, Cedar Park at $760,000, River Place at $875,000, Kyle at $267,000, and central Austin at $1,699,950. Wherever your search lands, we have closed there recently, and our YouTube channel, The Real Austin, lets you study neighborhoods before you fly out.