I'm wondering if they're downsizing given median home cost in Texas is about $300k versus $750k in California, from a quick search. It's nice to have the extra money go to equity instead of taxes, I'm sure, but I'm not sure how moving to California without the bump in income would make sense from a pure cost of living perspective.
Maybe if they're coming from Austin and moving to somewhere cheaper in California they'd find apples for apples. Austin's always been a little expensive but never anything near where it's gotten the past few years.
Another few interesting facts about Texas property taxes:
- Your primary residence gets a "homestead exemption" that lowers the overall rate and also caps any tax increases to 10% a year.
- If over 65, you can defer paying property taxes indefinitely for a 5% yearly interest rate as long as you don't move. You still owe the taxes, but they'll be taken out of your estate.
I like the 10% cap as it makes costs way more predictable, while still not having the weird effects that a permanent capped tax does where people are still paying tax rates based on a home value from the 1980s.