Texas › Texas vs. New York
Texas vs. New York: what changes when you leave the city.
State and city income tax, sales tax, property tax, rent, gas, power and insurance, side by side. Every number sourced.
New York was the third-largest source of new Texans in 2024, with about 28,000 people making the move. For a New York City resident, the case is simple: two income taxes go away, rent roughly halves, and car insurance falls. The trade-offs are a car you’ll almost certainly need, property tax if you buy, and Dallas-Fort Worth prices that sit above the national average. Here is the side-by-side, with the math.
Numbers last checked October 31, 2026Side by side
We used the same source on both sides wherever we could: Apartment List for rent, Zillow for home values, EIA for gas, Experian for car insurance and BEA for overall prices. The one exception is Houston home prices, noted below.
| Cost | New York / NYC | Texas | As of | Source |
|---|---|---|---|---|
| Taxes | ||||
| State income tax rates | 3.9% to 10.9%; 5.9% on single taxable income from $80,650 to $215,400 | None | 2026 tax year | NY Tax Dept., IT-2105-I (2026); Texas taxes |
| NYC resident income tax | 3.078% to 3.876%; 3.876% over $50,000 | None (no Texas city income tax) | 2026 tax year | NY Tax Dept., IT-2105-I (2026) |
| Standard deduction, single | $8,000 | n/a | 2026 tax year | NY Tax Dept. |
| Sales tax, combined | 8.875% NYC (state share 4%) | 8.25% in Dallas, Houston and Austin (the state cap); state share 6.25% | Pub. 718 rev. Feb 2025 / Oct 2026 | NY Pub. 718; TX Comptroller |
| Clothing and shoes | Exempt under $110 an item | Taxed, except during the August sales tax holiday (items under $100) | 2026 | NY Tax Dept.; TX Comptroller |
| Average combined state + local sales tax | 8.54% (10th highest) | 8.20% (14th) | Jan 1, 2026 | Tax Foundation, Table 18 |
| State-local tax burden, share of income | 15.9% (rank 50, the highest) | 8.6% (rank 6) | Calendar 2022 data | Tax Foundation, Table 2 |
| Effective property tax rate, statewide | 1.30% | 1.40% | 2026 pages | Tax Foundation (NY, TX) |
| Effective property tax rate, another ranking | 1.55% (46th) | 1.49% (44th) | Feb 2026 | WalletHub, via ClickOrlando |
| Housing | ||||
| 1-bedroom rent, median | $2,475 NYC | $1,207 Dallas; $1,116 Houston; $1,172 Austin | Nov 2026 reports (Oct data) | Apartment List |
| 2-bedroom rent, median | $2,609 NYC | $1,428 Dallas; $1,323 Houston; $1,426 Austin | Nov 2026 reports (Oct data) | Apartment List |
| Rent change, past year | +4.3% NYC | −0.6% Dallas; −2.2% Houston; −1.3% Austin | Nov 2026 reports | Apartment List |
| Typical home value (Zillow ZHVI) | $825,854 NYC (+4.3%) | $303,442 Dallas (−1.4%); $491,960 Austin (−3.2%) | Sep 30, 2026 | Zillow |
| Houston home prices | $325,000 median single-family sale, Greater Houston | Sep 2026 | HAR, via My Neighborhood News | |
| Getting around and bills | ||||
| Regular gasoline, per gallon | $4.178 NYC; $4.249 New York State | $3.632 Texas; $3.681 Houston | Week of Oct 26, 2026 | EIA |
| Residential electricity, average | 28.6¢/kWh (+7.5% in a year) | 15.9¢/kWh (+3.3%) | Aug 2026 | ElectricRates.org, from EIA data |
| Car insurance, average per year | $3,115 New York; $6,186 Brooklyn; $5,947 Bronx | $2,329 Texas; $2,504 Dallas; $2,696 Houston; $2,151 Austin | Sep 2026 data | Experian (NY, TX) |
| Full-coverage car insurance | $3,452 | $2,897 | Sep 2026 data | Experian |
| Overall price level (BEA, U.S. = 100) | ||||
| State | 107.9 New York | 97.1 Texas | 2024 data | BEA via FRED |
| Metro | 112.6 New York-Newark-Jersey City | 103.1 DFW; 98.6 Houston; 98.1 Austin | 2024 data | BEA via FRED |
Apartment List’s New York City figure is a citywide median across all five boroughs, so Manhattan listings will run well above it. Zillow’s home value index is a typical value for all homes, condos and co-ops included, not a sale price. We couldn’t open Zillow’s Houston page, so the Houston row uses HAR’s sale-price median; don’t compare it directly. The two property tax rankings are statewide and include upstate New York; we didn’t find a New York City effective rate on the same basis. BEA’s next price-parity release, with 2025 data, is due Dec 10, 2026.
New York’s two income taxes, in plain terms
If you live in New York City, you pay two income taxes on the same taxable income: the state’s and the city’s. Texas has neither, and no Texas city has an income tax.
- New York State, 2026. Nine brackets from 3.9% to 10.9%. For a single filer, 5.4% applies from $13,900 to $80,650 of taxable income and 5.9% from $80,650 to $215,400. The 2026 rates on the lower five brackets are a tenth of a point below 2025’s.
- The high-income recapture. Once your New York AGI passes $107,650, the state starts phasing out the benefit of the lower brackets, so more of your income is taxed at your top rate. It’s fully phased out at $157,650 for a single filer in the 5.9% bracket. Our $150,000 example below shows how this works.
- New York City, 2026. Four brackets from 3.078% to 3.876%. A single filer pays 3.876% on everything over $50,000.
Federal income tax, Social Security and Medicare are the same in both states.
Worked example: $90,000 and $150,000 in New York City vs. Dallas
This counts only state and city income tax, for a single filer with wages only. Our assumptions:
- Single filer, no dependents, all income from wages, full-year New York City resident.
- New York standard deduction of $8,000, and AGI equal to wages. No itemized deductions or credits.
- 2026 New York State and City rate tables from the state’s IT-2105-I instructions, including the state’s high-income worksheet for the $150,000 case. Below $65,000 of taxable income New York uses a tax table, which can differ by a few dollars; neither example is in that range.
- Payroll deductions for New York disability and paid family leave, federal tax, sales tax and property tax are left out. Dallas has no city income tax.
| Step | NYC, $90,000 | NYC, $150,000 | Dallas, either salary | Source |
|---|---|---|---|---|
| Wages | $90,000 | $150,000 | $90,000 / $150,000 | Example |
| Less standard deduction | −$8,000 | −$8,000 | n/a | NY Tax Dept. |
| Taxable income (state and city) | $82,000 | $142,000 | n/a | Arithmetic |
| New York State | ||||
| Tax from the rate table | $4,191 + 5.9% × $1,350 = $4,271 | $4,191 + 5.9% × $61,350 = $7,811 | n/a | NY 2026 rates (amount over $80,650) |
| Flat-rate tax: all taxable income at 5.9% | Doesn’t apply (AGI under $107,650) | $142,000 × 5.9% = $8,378 | n/a | NY worksheet, line 3 |
| Recapture share | n/a | ($150,000 − $107,650) ÷ $50,000 = 0.8470 | n/a | NY worksheet, lines 6–7 |
| Recapture added | n/a | ($8,378 − $7,811) × 0.8470 = $481 | n/a | NY worksheet, line 8 |
| New York State tax | $4,271 | $8,291 | $0 | Arithmetic |
| New York City | ||||
| City tax from the rate table | $1,813 + 3.876% × $32,000 = $3,053 | $1,813 + 3.876% × $92,000 = $5,379 | $0 | NYC 2026 rates (amount over $50,000) |
| Total state + city tax for the year | $7,324 | $13,670 | $0 | Arithmetic |
| Per month | $610 | $1,139 | $0 | ÷ 12 |
| Share of wages | 8.1% | 9.1% | 0% | Arithmetic |
The answer is the same if you move to Houston or Austin instead of Dallas. Rounding: we rounded each line to the nearest dollar; the unrounded totals are $7,323.97 and $13,670.12.
Then add rent
The median 1-bedroom is $2,475 in New York City and $1,207 in Dallas, from the same source. That’s $1,268 a month, or $15,216 a year. Add the tax savings and a $90,000 renter keeps about $22,500 a year. A $150,000 renter keeps about $28,900, before buying a car.
Then budget for a car
Most New Yorkers who move to Dallas or Houston end up buying a car. Insurance alone averages $2,504 a year in Dallas, and gas is $3.63 a gallon statewide. Add a payment, registration and parking. Registration and the new-resident fee are on our vehicle costs page. If you already drive in Brooklyn ($6,186) or the Bronx ($5,947), Texas insurance will feel cheap.
Property tax: closer than you’d think
New York and Texas are both high-property-tax states. The Tax Foundation puts the statewide effective rate at 1.30% in New York and 1.40% in Texas. WalletHub’s February 2026 ranking has them almost tied too, at 1.55% and 1.49%. Both statewide figures include very different places, so your bill depends on where you buy.
A few Texas rules that matter for buyers:
- Texas has no state property tax. Cities, counties, school districts and special districts set the rates.
- The school-tax homestead exemption is $140,000, and a homestead’s taxable value can rise by no more than 10% a year. File with your county appraisal district; it’s free.
- Rates move every fall. In Dallas County, a tax rate election is on the Nov 3, 2026 ballot.
- Budget for home insurance: the Texas average was $3,489 in 2025 (preliminary), per the Texas Department of Insurance.
Local rates are on Texas property taxes and the Dallas, Houston and Austin pages.
What surprises people coming from New York
Dallas is pricier than you’d guess
BEA puts DFW’s overall price level at 103.1, against 112.6 for the New York metro (2024 data). That’s a real gap, but most of it is housing. Houston (98.6) and Austin (98.1) are a bit below the national average.
Electricity costs half as much per kWh
New York’s residential average was 28.6¢/kWh in August 2026, up 7.5% in a year. Texas was 15.9¢. You’ll use more power in a Texas summer, but at a much lower rate. In Dallas and Houston you choose your own provider; Austin has city-owned Austin Energy. See Texas electricity.
Clothes are taxed
New York exempts clothing and shoes under $110 an item. Texas taxes them at the full rate except during its August holiday, which in 2026 ran Aug 7–9.
How many New Yorkers are making the move
Census survey data for 2024, compiled by Texas REALTORS, shows about 28,000 people moved from New York to Texas, behind only California (about 77,000) and Florida (about 52,000). Texas’s net gain from New York was about 12,000. These are survey estimates with margins of error, so treat them as rounded.
Out-of-date numbers you’ll still find online
Those were the 2025 rates. The state’s 2026 tables are a tenth of a point lower on the first five brackets.
The rate on the first $8,500 of a single filer’s taxable income fell from 4% in 2025 to 3.9% in 2026. For 2026, NYC’s top rate is 3.876% on income over $50,000.
Experian’s September 2026 data puts the average at $2,329 in Texas and $3,115 in New York.
BEA’s current regional price parities cover 2024 (New York metro, updated Feb 2026). The 2025 numbers come out Dec 10, 2026.
The Tax Foundation’s newest state-local burden figures are still for calendar year 2022, even in its May 2026 Facts & Figures. They’re the latest available, not stale copies. Gas prices change weekly; EIA’s figures here are for the week of Oct 26, 2026.
Where to go next
Pick a city: Dallas, Houston or Austin, or compare them all on the Texas city comparison. Then work through the moving checklist, Texas taxes and child care costs. Coming from California instead? See Texas vs. California.
How we check
Every figure links to its source and shows the date it applies to. We prefer the agency that produces the number, such as the New York Tax Department, EIA and BEA. We label anything from a marketplace or aggregator, such as the Experian, Zillow, WalletHub and ElectricRates.org figures here. Read the full methodology.