Everyone says "California is expensive, Texas is cheap." But what do the ACTUAL numbers say? Let's compare DFW to Los Angeles with real, sourced data.
Housing (biggest difference)
- Median home price DFW: $380,000 (Source: Zillow March 2026)
- Median home price LA: $925,000 (Source: Zillow March 2026)
- DFW winner by: 59% cheaper
- BUT: Texas property tax rate ~2.2% vs California ~0.75%
- Annual property tax on median home: DFW $8,360 vs LA $6,938
- Net savings still massively favor DFW for housing
Income Tax
- Texas: 0%
- California: 1-13.3% (13.3% is the highest state income tax in the US)
- On $100K income: Texas saves you ~$6,000-8,000/year vs California
Sales Tax
- Texas: 8.25% (DFW)
- California: 7.25-10.25% depending on city
- Roughly similar, slight CA disadvantage
Groceries
- DFW is 15-20% cheaper than LA (Source: BLS Consumer Expenditure Survey)
- H-E-B and Aldi keep Texas grocery prices competitive
Gas
- Texas average: $2.85/gallon (Source: AAA Gas Prices)
- California average: $4.65/gallon
- Texas wins by 39%
Utilities
- DFW electricity: 10-13 cents/kWh (deregulated, you choose)
- LA electricity: 25-30 cents/kWh (LADWP monopoly)
- Texas electricity is roughly HALF the cost
Where California wins:
- Weather (no 108F summers, no ice storms)
- Beach access
- Higher average wages in tech/entertainment
- State parks and natural scenery diversity
- Public transit in metro areas
Where Texas wins:
- Housing cost (massively)
- No state income tax
- Energy costs
- Gas prices
- Overall cost of living
- Land and space (actual yards, not tiny lots)
- Business-friendly environment
Bottom line: A $100K salary in DFW has roughly the same purchasing power as a $160K salary in LA when you factor in housing, taxes, and cost of living.
Source: Zillow (March 2026), BLS, AAA Gas Prices, Tax Foundation, Numbeo cost of living index
People always forget the income tax savings. On a $150K household income, you save $12,000+ per year JUST on state income tax. That pays for a lot of AC.