California has the highest state income tax rate in the United States — 13.3% at the top bracket. Even for middle-income earners, the effective state income tax burden is substantial. It's one of the primary financial reasons an estimated 500,000+ people leave California every year, with Texas, Florida, Nevada, and Arizona consistently topping the destination list.
But how much do you actually save? And what are the trade-offs? This article runs the real numbers across the most popular destinations for California expats.
California's Tax Burden: The Starting Point
California's state income tax is progressive, with nine brackets ranging from 1% to 13.3%. For 2024, here's what residents owe at various income levels (single filer, standard deduction):
- $75,000 salary: ~$4,100–$4,400 in California state income tax (effective rate ~5.5%)
- $100,000 salary: ~$6,500–$7,000 in California state income tax (effective rate ~6.5–7%)
- $150,000 salary: ~$12,000–$13,000 in California state income tax (effective rate ~8–8.5%)
- $200,000 salary: ~$18,500–$20,000 in California state income tax (effective rate ~9.5%)
California also charges a 1.1% State Disability Insurance (SDI) payroll tax on wages up to $153,164 (2024), adding another $825–$1,685 for the income ranges above. These figures don't include federal income tax, which is the same regardless of state.
The state also has high sales tax — the base rate is 7.25%, with most counties adding local taxes to push it to 9–10.75% in many areas. And while Proposition 13 keeps property tax rates low for long-term homeowners (~0.75% effective), new buyers pay full assessed value, making property taxes significant on California's elevated home prices.
Texas: The Most Popular Destination
Texas has no state income tax. Period. For a Californian earning $100,000, that's an immediate $6,500–$7,000 more per year in take-home pay — before accounting for any cost of living differences.
The trade-off most people miss: Texas has some of the highest property taxes in the nation, with effective rates of 1.6–2.0% depending on the county. On a $400,000 home, that's $6,400–$8,000 per year in property taxes alone — significantly higher than California's Prop 13-protected rates.
However, homes in Texas are dramatically cheaper than California. The median home price in Austin is approximately $525,000 in 2025 vs. $850,000 in Los Angeles or $1.2M in San Francisco. That means renters and buyers of more affordable homes both come out ahead financially.
Annual savings: California → Texas (single filer)
Income tax savings only. Does not account for cost of living, property tax, or housing differences.
See the full Los Angeles vs Austin comparison →
See the full San Francisco vs Dallas comparison →
Florida: No Income Tax, Lower Property Taxes Than Texas
Florida also has no state income tax, giving Californians the same income tax savings as Texas. But Florida has a meaningful advantage: property taxes average around 0.85–0.95% effective rate — roughly half of Texas.
Florida's homestead exemption (up to $50,000 off assessed value for primary residences) further reduces the property tax bill. On a $400,000 home in Tampa or Orlando, expect to pay roughly $2,800–$3,200 per year in property taxes vs. $6,400–$8,000 for a similar home in Dallas or Houston.
Miami has become expensive enough that it partially offsets the tax savings for high earners. Tampa, Orlando, and Jacksonville offer the best combination of no income tax, moderate housing costs, and lower property taxes. The obvious concern: Florida's homeowners insurance has spiked significantly in recent years due to hurricane exposure — budget $3,000–$6,000+ per year for homeowners insurance in coastal areas.
See the full Los Angeles vs Tampa comparison →
Nevada: No Income Tax, Very Low Property Taxes
Nevada is California's closest no-income-tax neighbor and offers some of the lowest property tax rates in the nation — typically 0.5–0.6% effective. On a $400,000 home in Las Vegas, expect to pay roughly $2,000–$2,400 per year in property taxes.
Las Vegas has grown significantly as a remote work destination, with a genuine food scene, entertainment, and lower cost of living than California metros. Reno has emerged as a smaller but rapidly growing alternative — closer to Lake Tahoe and with a growing tech presence thanks to Tesla's Gigafactory.
Nevada's sales tax is high (8.38% in Las Vegas), partially offsetting the savings. But for income savers, Nevada is one of the cleaner choices: no income tax, very low property taxes, and home prices well below California.
Arizona: Low Flat Tax, Serious Cost Savings
Arizona overhauled its income tax system and now levies a flat 2.5% state income tax on all income as of 2023 — among the lowest flat rates in the country. Compared to California's effective 5.5–9.5% depending on income, Arizonans save 3–7 percentage points.
On $100,000: Arizona taxes you $2,500 vs. California's ~$6,700 — a savings of ~$4,200/year. Phoenix's median home prices are approximately $415,000 (2025), far below Los Angeles or San Francisco, and property taxes average around 0.6% effective.
Scottsdale and Tempe are popular landing spots for California transplants — warm climate, outdoor lifestyle, and proximity to California without the price tag. Summer temperatures in Phoenix are extreme (115°F+), but for those who can tolerate the heat, Arizona offers one of the best combinations of tax savings, housing affordability, and quality of life.
See the full Los Angeles vs Phoenix comparison →
Colorado: Reasonable Taxes, Mountain Lifestyle
Colorado's flat 4.4% state income tax won't produce the dramatic savings of Texas or Florida, but it still represents meaningful relief from California's 5.5–9.5% effective rates for most earners.
On $100,000: Colorado taxes you $4,400 vs. California's ~$6,700 — a savings of about $2,300/year. That's not life-changing on its own, but combined with Colorado's lower housing costs (Denver median ~$565,000 vs. LA's $850,000), the total financial picture improves substantially.
Colorado also has very low property taxes (~0.5% effective) and genuinely excellent quality of life: 300 days of sunshine per year, world-class skiing, and a strong outdoor culture. Denver is the choice for Californians who want a big city feel without the coastal price tag.
What's the Right Move?
The answer depends entirely on your income, housing situation, and lifestyle priorities:
- For high earners ($150K+): Texas, Florida, or Nevada produce the largest absolute dollar savings — often $12,000–$20,000+ per year. The no-income-tax savings compound significantly at higher income levels.
- For moderate earners ($75K–$100K): Arizona and Colorado still produce meaningful savings and offer strong quality of life without requiring a complete lifestyle overhaul.
- For homebuyers: Factor in property taxes carefully. Texas saves you income tax but charges it back in property taxes — Florida and Nevada are generally better deals for buyers.
- For renters: Texas, Florida, Nevada, and Arizona all produce clear, immediate savings with no property tax offset to worry about.
Run your exact numbers
Simcasta calculates your precise tax savings, housing cost differences, and monthly surplus for your California city vs. any destination — personalized to your income.
Compare your cities →Data sources: California Franchise Tax Board (2024), IRS (2024 tax tables), Arizona Department of Revenue, Texas Comptroller, Florida Department of Revenue, Zillow Research (Q1 2025), Tax Foundation. All figures are estimates for illustrative purposes.