Moving from California to Texas — what your utility bills will actually look like

Income-tax savings get all the airtime. Here's the part nobody writes about: the actual line-by-line utility math, with real 2026 rates from PG&E, SoCalGas, ERCOT REPs, and major Texas water utilities.

The income-tax math everyone cites

A $200k California household pays roughly $11,000–$15,000 a year in state income tax. Move to Texas, that line goes to zero. That's the headline number every relocation blog leads with. It's true. It's also incomplete.

The property-tax math nobody finishes

California's effective property-tax rate is roughly 0.7%, fixed by Proposition 13 since 1978. Texas's effective rate is 1.6% to 2.5% depending on county, school district, and MUD overlay. On a $500,000 home, that's $3,500/year in CA vs $8,000–$12,500/year in TX. Across a 10-year hold, the difference is $45,000–$90,000 — a meaningful chunk of the income-tax savings.

File your homestead exemption the day you close. It can shave 20% off your taxable value. Many Texas appraisal districts let you do it online within 24 hours of closing.

Electricity: the line item with the biggest delta

PG&E's peak rate hit roughly 38¢/kWh in 2025; SDG&E's was higher; LADWP and SMUD are cheaper than the big IOUs. A fixed-rate Texas REP plan in 2026 averages about 12¢/kWh.

But the kWh delta has to be multiplied by usage, and Texas usage is higher because of AC. A typical California coastal household uses 500–600 kWh/month; the Texas equivalent uses 900–1,400 kWh in shoulder months and 1,800–2,400 kWh in July/August. The net annual savings still favor Texas — usually $1,500 to $2,200 a year — but it's not the 70% reduction the headline rate suggests.

Water and sewer: comparable, with a Texas-specific twist

Major-city water rates run roughly $40–$80/month in both states. The twist: many Texas exurbs (Frisco, Cypress, Katy, Pflugerville, Cinco Ranch) add a Municipal Utility District line item. That MUD can add $30–$80/month to your water bill plus a separate property-tax line. See the MUDs explainer.

Gas: meaningfully cheaper

SoCalGas peak rates ran ~$2.20/therm in 2025. Texas Atmos and CenterPoint Energy gas service averages roughly $0.80/therm. For a typical 30-therm winter month that's $42 in California vs $24 in Texas. Smaller absolute number than electricity, but consistent savings.

Internet: roughly the same

ISP pricing is more national than utility pricing. Comcast, AT&T, Verizon Fios, and Spectrum all charge similar rates in both states. Texas has stronger fiber competition in major metros (Austin, Dallas, Houston) which can shave $20–$30/month off the bill if you shop at the address level.

Renter vs. owner — the shock points are different

California renters generally pay electric only; many TX leases are similar. The big renter shock is the size of the deposit Texas REPs ask for if you don't have established TX credit history — often $200–$400. Get a Letter of Credit from your previous CA utility before you move.

California owners are shocked by the property tax. Texas owners are shocked by the summer power bill. Plan for both.

Week 1 in Texas — the action list

1. File your homestead exemption (owners) or get the lease's utility-responsibility clause in writing (renters).
2. Freeze your credit before signing up for any utility.
3. Look up your ESID at smartmetertexas.com. Compare REPs at that ESID.
4. Pick a 12- or 24-month fixed-rate plan. Never variable.
5. Set up city water/sewer (in person if required).
6. Schedule the gas tech appointment if your home has gas appliances.
7. Book internet 7–14 days out.

Frequently asked questions