If you’re considering a move to Texas, join the crowd. According to the US Census Bureau, Texas’ population grew by 9,085,073 between 2000 and 2022, which is more than in any other state. Roughly 29% of Texas’ population growth was due to out-of-state relocations.
Why are so many people moving to Texas? There are plenty of reasons so many people move to Texas, not the least of which is lower taxes, and there are plenty of great places to live in Texas.
Some people move to Texas for low taxes
Moving to Texas can come with big tax benefits for people of all ages, and some people in higher-taxed states have taken notice. For example, Kiplinger reported on IRS migration data showing Texas among the most commonly moved-to states for people living in high-tax states, such as California and New York.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Texas doesn’t have an income tax
Nearly everyone can enjoy the fact that Texas is a state that doesn’t impose a personal income tax. The "working class" doesn’t pay state tax on wages, retirees don’t pay state income tax on retirement benefits, and investors don’t pay state tax on investment income.
That means you don’t need to worry if your income source changes (for example, if your income changes from wages to 401(k) distributions when you retire). How your income is taxed at the state level in Texas won’t change unless Texas law changes.
Texas cities with low property taxes
Currently, most Texas property taxes are fairly high compared to those in most other states. However, some areas of Texas impose lower property taxes than others. According to Texas Real Estate Source, average annual property tax bills fall below $400 in these Texas counties.
- Terrell County ($285)
- Ward County ($342)
- Zapata County ($359)
- Upton County ($359)
- Zavala County ($369)
- Kent County ($396)
Additionally, a recently passed Texas property tax relief package could lower property taxes for all Texas homeowners. If voters approve the package in November, homeowners should see lower school tax bills and an increased homestead exemption of up to $100,000 ($110,000 for people with disabilities and those 65 and older).
Texas sales tax exemptions
Other recently passed legislation includes a Texas sales tax relief bill, which will make several items tax-free in Texas, beginning this month, i.e., September.
- Maternity clothing, nursing bras and nursing pads will be tax-exempt.
- Baby wipes, baby diapers and baby bottles will be tax-free.
- Some women’s hygiene products will be tax-exempt.
- Wound care dressings (such as bandages) will be tax-free.
Texans already enjoy some sales tax exemptions not available in all other states. For example, Texas doesn’t tax groceries like neighboring states Arkansas and Oklahoma do. Additionally, Texas holds an annual ‘tax-free weekend’ that makes certain clothing and school supply items tax-exempt.
Also, Texas shoppers no longer pay state sales tax on menstrual products, such as tampons and sanitary pads. As of September 1, Texas is the 25th state to eliminate sales tax on feminine hygiene products, also sometimes referred to as the "pink tax" or "tampon tax."
Pros and cons of moving to Texas
While the overall tax burden in Texas is low, some types of taxes aren’t as appealing. One of these taxes is a new Texas tax on electric vehicles that will increase registration costs for EV owners by nearly as much as 800%.
Other pros and cons of moving to Texas depend on who you are. For example, the weather in Texas is a pro for some people since the state has generally mild winters. (According to the Texas Film Commission, snow is uncommon in most of the state.)
But of course, before making the move to Texas (or any other state) some people may consider everything from cost of living and political climate to proximity to family, and job opportunities. Families should weigh the pros and cons of moving to a new area, so they can make the best decision for their circumstances.
Related Content
-
Dow, S&P 500 Slip on December Rate Cut Worries, Nvidia Boosts Nasdaq: Stock Market TodayNvidia became the first company ever to boast a $5 trillion market cap, but it wasn't enough to lift the Dow and the S&P 500.
-
Where You Choose to Stash $100k Now Comes with a Big Opportunity CostThe Fed recently cut rates. Here's where to maximize your savings while rates remain higher.
-
Three Critical Tax Changes Could Boost Your Paycheck in 2026Tax Tips The IRS predicts these tax breaks may change take-home pay in 2026. Will you get over $1,000 in tax savings?
-
What’s the New 2026 Estate Tax Exemption Amount?Estate Tax The IRS just increased the exemption as we enter into a promising tax year for estates and inheritances.
-
IRS Updates 2026 Tax Deduction for People Age 65 and OlderTax Changes Adjustments to the extra standard deduction can impact the tax bills of millions of older adults. Here are some new amounts to know for 2026.
-
IRS Reveals New 2026 Child Tax Credit and other Family Credit AmountsTax Credits Key family tax breaks are higher for 2026, including the Earned Income Tax Credit and the Adoption Credit. Here's what they're worth.
-
Standard Deduction 2026 Amounts Are HereTax Breaks What is the standard deduction for your filing status in 2026?
-
Claiming the Standard Deduction? Here Are Five Tax Breaks for Retirement in 2025Tax Tips If you’re retired and filing taxes, these five tax credits and deductions could provide thousands in relief (if you qualify).
-
New Tax Rules: Income the IRS Won’t Touch in 2025Income Taxes From financial gifts to Roth withdrawal rules, here’s what income stays tax-free under the new Trump 2025 tax bill, and some information on what’s changed.
-
Three Popular Tax Breaks Are Gone for Good in 2026Tax Breaks Here's a list of federal tax deductions and credits that you can't claim in the 2026 tax year. High-income earners could also get hit by a 'surprise' tax bill.
