Compare taxes and see how much you save moving from Washington to Texas
Both Washington and Texas have no state income tax (0%), making them two of the most tax-friendly states. However, Washington imposes a 7% capital gains tax on gains over $250k (affecting investors and startup employees with stock), while Texas has no capital gains tax. Property taxes favor Washington (0.94% vs TX 1.74%), but Washington has higher sales tax (9.38% vs 8.20%). Overall, Texas offers slightly lower taxes for high capital gains earners, while Washington offers better property tax rates. Seattle-to-Austin tech migration has accelerated post-2020.
No Income Tax
0% (7% capital gains over $250k)
No Income Tax
Constitutional prohibition
At $100,000 income:
That is $0/month back in your pocket!
| Income | WA Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 | $0 | $0 | $0 |
| $100,000 | $0 | $0 | $0 | $0 |
| $200,000 | $0 | $0 | $0 | $0 |
| $500,000 | $0 | $0 | $0 | $0 |
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Moving from Washington to Texas? Multi-state returns are tricky—WA capital gains tax rules, partial-year residency. Get matched with a CPA who specializes in state moves.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →For wage earners, both are identical—0% income tax. The key difference: Washington's 7% capital gains tax on gains over $250k/year. If you sell stock for $500k gain, WA charges 7% on $250k (the amount over threshold) = $17,500 tax. Texas: $0. This massively impacts tech employees with RSUs/options, startup founders, and active investors. For homeowners, WA wins on property tax (0.94% vs TX 1.74%)—save $2,000-$8,000/year.
Tech employees with significant stock compensation (Amazon/Microsoft RSUs vesting $250k+), startup founders selling companies or exercising options at IPO/acquisition, active investors realizing $250k+ gains annually. Real estate is EXEMPT (no cap gains tax on home sales). Most wage earners are unaffected. But for tech workers with heavy stock comp, Texas saves 7% on gains over $250k.
Very real. In 2023, 16,284 people moved WA → TX (vs 8,471 TX → WA), net gain of 7,813 for Texas. Post-2020 remote work enabled Seattle tech workers to relocate to Austin while keeping high salaries. Drivers: housing 31% cheaper, no capital gains tax (saves 7% on stock), 300 sunny days vs 152. However, Amazon/Microsoft still pay highest salaries in Seattle ($250k-$500k+ vs Austin $200k-$400k).
Washington wins for homeowners: 0.94% property tax (vs TX 1.74%)—save $2,000-$8,000/year on expensive homes. Texas wins for renters: no capital gains tax (investors save 7%), housing 31% cheaper ($590k vs $850k median), 21% lower cost of living. If you own expensive home ($800k+), WA property tax savings are massive. If you rent and have stock comp, TX wins on capital gains + lower rent.