Relocating to Austin
- Jun 16
- 7 min read
Updated: Jun 22
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Relocating to Austin: The Honest, Numbers-First Guide for High Earners
Short answer: Austin is one of the best relocation destinations in the country for a high earner, mostly because Texas has no state income tax, no city income tax, and no capital-gains tax, which can save a household leaving California, New York, or Illinois anywhere from tens of thousands to hundreds of thousands of dollars a year.
But the savings are only half the story, and the honest version includes the offsets: higher property taxes, and an Austin market that ran hot and then corrected. This page is the map. It walks you through the real math by where you are coming from, what your money buys here, and how we think about the move, with links to the full breakdown on each. (This is general information, not tax advice. Run your numbers with your CPA.)
How the Berbas Group thinks about a relocation (and why it is different)
Most relocation guides will sell you a vibe: the tacos, the live music, the lake, the "Austin is 41% cheaper than your city" headline. All true, and all beside the point if you are a high earner. For you, this is a capital allocation decision, and almost nobody treats it like one.
Before real estate, I spent sixteen years in finance, a good chunk of it as a statistical arbitrage trader. So when a client asks me about moving to Austin, I do not start with neighborhoods. I start with the cash flows: what you stop paying in tax, what that saving becomes when you invest it, and what it actually costs to own here. We are asset managers, not lifestyle realtors. Here is the map, by the numbers.
Start here: run your own tax math
The single biggest financial lever in this move is state and city income tax, and it depends entirely on where you are leaving.
We built an interactive relocation tax calculator so you can put in your own income, an equity event if you have one coming, and your home budget, and see the recurring savings, the one-time capital-gains tax you avoid, and what the whole thing compounds to over the years you choose. It is the fastest way to see whether this move is worth a real conversation. Then read the breakdown for your specific city below.
The math, by where you are moving from
From California.
California's top rate is 13.3%, the highest in the country, and it taxes capital gains as ordinary income too. A $1 million household saves roughly $90,000 a year; a $5 million earner saves around $600,000. The honest counterweight is that Texas property tax is higher than California's.
Read the full California breakdown.
From Los Angeles.
Same California tax math, with the added quality-of-life arbitrage: your Westside budget buys far more house here.
Read the Leaving LA breakdown.
From San Francisco and the Bay Area.
Same California rates, but the number that decides it for tech families is the one-time one: a $5 million equity event (an IPO, an acquisition, a big vest) costs roughly $660,000 in California tax and zero in Texas, if you time your residency right.
Read the Bay Area breakdown.
From New York City.
This is the heaviest, because Manhattan residents pay a city income tax on top of the state tax. A $1 million NYC household pays about $103,000 a year combined, all of it zero in Texas. Move outside the five boroughs and the city tax disappears.
Read the New York breakdown.
From Chicago.
Illinois is a flat 4.95%, so the income-tax saving is more modest, but here is the twist: Illinois property taxes are higher than Texas's, so you tend to save on property tax too.
Read the Chicago breakdown.
From Seattle.
This one is misunderstood. Washington already has no state income tax, so there is no recurring income-tax saving. The Washington saving shows up on a capital-gains event (Washington now charges 7%, and 9.9% over $1 million) plus its estate tax, all of which Texas does not levy.
Read the Seattle breakdown.
What your money actually buys in Austin
Coming from a coastal city, the space and quality you get for the dollar is the part you feel immediately. At $5 million you are buying a substantial, beautifully finished estate in a top neighborhood; at $10 million you are into Lake Austin waterfront and trophy territory. One honest thing buyers get wrong: Austin's most expensive homes are mostly new construction, not historic.
Read what $5M and $10M buy in Austin.
Where relocating buyers tend to land
Your priorities point to your neighborhood. Families chasing top schools go to Westlake and Eanes ISD. Buyers who want close-in historic character look at Tarrytown, Pemberton, Old Enfield, or Hyde Park. Acreage and privacy means Barton Creek; water means Lake Austin; walk-to-everything means Travis Heights, Bouldin, Zilker, Clarksville, or Hyde Park; lock-and-leave means a downtown high-rise. (We are building a tool to match your current neighborhood to its Austin equivalent, more on that soon.)
The honest offsets, because we will not pretend they are not there
Two things every relocation pitch should say and most do not. First, Texas property taxes are higher, around 1.8% of value in the Austin area, higher than California, New York City, or Washington, though lower than Illinois.
For high earners the income-tax savings dwarf this, but you should see it, and the calculator nets it out. Second, the Austin market is not a guaranteed rocket. Prices peaked in 2022 and softened into 2025. Long run, Austin has appreciated around 5% a year, but it does not move in a straight line, and anyone who tells you otherwise is selling. We would rather give you a smaller, true number than a bigger one that falls apart.
How we actually help you move
Most of our relocating clients buy partly or entirely remotely, so the process has to de-risk a long-distance purchase: video walkthroughs, honest neighborhood guidance, a vetted local team, and a managed transaction so nothing falls through the cracks while you are still packing a thousand miles away. We treat the move as the financial decision it is, run the math with you, and only then talk about which street.
Run your numbers, then let's talk
Start with the calculator, read the breakdown for your city, and if it looks like a conversation worth having, we would love to run your real numbers with you and build the home plan around them.
We are delighted to be your guides to Austin and Austin real estate, and always happy to nerd out on the numbers with you.
Cheers,
Jen and the team
Frequently asked questions
Is Austin a good place to move to?
For a high earner, yes, primarily for the tax structure: Texas has no state income tax, no city income tax, and no capital-gains tax. Add a lower cost of housing per dollar than coastal cities and a familiar tech-and-outdoors culture. The honest offsets are higher property taxes and a market that ran hot and then corrected, so run your own numbers.
How much do you save in taxes by moving to Austin?
It depends entirely on where you are leaving. From California, a $1 million household saves about $90,000 a year and a $5 million earner about $600,000. From New York City, a $1 million household saves about $103,000 (state plus city). From Illinois, less on income (a flat 4.95%) but you also save on property tax. From Washington, the saving is on capital gains and estate tax, not recurring income.
Is it worth moving to Austin after the higher property taxes?
At high incomes, by a wide margin, because the income and capital-gains savings far exceed the property-tax difference. At lower incomes the gap matters more. The calculator nets it out so you see the true number, and you can enter your own current property-tax rate.
Can I buy a home in Austin remotely?
Yes, and most of our relocating clients do, partly or fully. The key is a process built for it: video tours, honest neighborhood guidance, a vetted local team, and a managed transaction so nothing slips while you are still out of state.
Which Austin neighborhood is right for me?
It depends on your priorities: schools (Westlake/Eanes), historic character (Tarrytown, Pemberton, Old Enfield, Hyde Park), acreage (Barton Creek), water (Lake Austin), walkability (Travis Heights, Bouldin, Zilker, Clarksville, Hyde Park), or lock-and-leave (downtown). We can help you match your current neighborhood to its Austin equivalent.
*This article is general information, not tax, legal, or investment advice. Tax outcomes and investment returns depend on your specific situation and are not guaranteed; consult a qualified CPA and financial advisor. Figures reflect 2025-2026 rates and the Berbas Group relocation calculator. Austin appreciation figures are long-run averages, not guarantees.*
*Jen Berbas is the team lead of the Berbas Group in Austin, Texas, and a contributor at Inman. A former statistical arbitrage trader, she brings an investment-minded, data-driven approach to helping high earners relocate and buy in Austin. [berbasgroup.com](https://www.berbasgroup.com/)*
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