How much money do you actually save moving from Seattle to Austin?

Honest answer for wage-only earners: at $200K household income, expect $12,000-$18,000/yr in real-purchasing-power gains. The components: housing $7,800-$15,000/yr cheaper rent or $290K cheaper home, sales tax ~$1,000/yr cheaper, fuel ~$300/yr. Offsets: Austin property tax ~$3,000-$5,000/yr higher than Seattle equivalent. For equity-realizing tech professionals: WA cap-gains tax savings can add $20,000-$100,000+/yr depending on equity vest size, dramatically increasing total Austin advantage at high comp tiers.

Does Washington have an income tax?

Not on wages. Washington's state constitution prohibits a graduated income tax on wages, salaries, and ordinary income. But Washington has layered three tax mechanisms that catch high earners: (1) the WA Capital Gains Tax of 7% on long-term capital gains above $270K (2026 inflation-indexed), enacted 2022; (2) WA Cares Fund payroll tax of 0.58% on wages, funding long-term care; (3) WA Estate Tax of 10-20% above $2.193M, with the highest top rate in the country. So while Seattle technically has '$0 income tax on wages,' equity-rich and high-net-worth households face meaningful WA-specific tax friction.

Is Austin really cheaper than Seattle?

Yes, by 33% on the cost-of-living index alone (Austin 110 vs Seattle 165). Median home: Seattle $850K vs Austin $560K. Median 1BR rent: Seattle $2,400/mo vs Austin $1,750/mo. Restaurants and services 25-35% cheaper in Austin. The major Austin offset is property tax (1.97% effective vs Seattle 0.93%), which makes absolute property tax bills closer than the rate suggests. Net all-in still favors Austin for both wage-earners and equity-rich tech workers.

Should I move from Seattle to Austin if I work at Amazon or Microsoft?

Depends heavily on your equity exposure. For wage-only employees with modest RSU stakes, the Austin savings ($12,000-$18,000/yr) are real but smaller than other coastal-to-Texas comparisons. Both cities have deep tech employer ecosystems with comparable salaries. For senior employees with significant RSU vests (Senior PMT, Director, VP levels) the WA cap-gains tax of 7% above $270K starts adding meaningful annual cost — easily $30,000-$100,000+/yr that Texas eliminates. Senior Amazon/Microsoft employees specifically should model the cap-gains exposure before deciding. Stay if your career trajectory requires Seattle physical presence (some teams remain Seattle-mandatory); move if you can negotiate Austin-based or remote and equity is significant.

What's Washington's capital gains tax — does it affect me?

Washington enacted a 7% long-term capital gains tax in 2022, applying to gains above $270K (2026 inflation-indexed) on stocks, RSU sales, ESPP dispositions, business sales, and other long-term capital assets. Real estate sales and retirement-account distributions are exempt. For tech workers at Amazon/Microsoft/Meta/Google realizing $300K+ in capital gains in any year (typical for senior employees with 4-year RSU vesting cycles), the tax adds $5,000-$50,000+/yr depending on gain size. The threshold is per-individual, not per-couple. Texas has no state capital gains tax. For high-equity tech workers, the WA cap-gains tax is the single largest financial argument for relocating to Texas.

City Comparison

Seattle vs Austin: Salary & Cost of Living Comparison (2026)

Seattle and Austin are the country's two leading no-income-tax-on-wages tech metros, anchored by Amazon and Microsoft on one side and Tesla, Oracle, and Samsung on the other. Both states charge zero state income tax on wages, but Washington layered a 7% capital gains tax above $270K (2026 inflation-adjusted) in 2022 plus a WA Cares 0.58% payroll tax for long-term care — so equity-rich tech workers face WA-specific drags Texas avoids. Austin's cost of living is 33% lower, though housing has run up sharply with the post-2020 migration. The post-tax math leans Austin for high-equity tech professionals; Seattle's specific big-tech-HQ density and Pacific Northwest lifestyle keep it competitive for many.

Last reviewed: May 8, 2026 · Reviewed by ProSalaryTax tax research team

TL;DR — 30-second version

1.Income tax on wages: both Seattle and Austin charge $0 state income tax. Take-home pay on $200K wages identical between the two cities — at least on the wage line.
2.Equity is where Washington adds friction: WA capital gains tax of 7% applies to long-term capital gains above $270K (2026 inflation-indexed). For Amazon/Microsoft/Meta employees with significant RSU vests + ESPP gains + stock sales, the WA cap-gains tax can add $5,000-$50,000+/yr that Texas avoids entirely. Plus WA Cares 0.58% payroll tax (~$870/yr at $150K wages).
3.Cost of living index: Seattle 165 vs Austin 110. Seattle runs roughly 50% more expensive. Median home: Seattle $850K vs Austin $560K — a $290K gap. Median 1BR rent: Seattle $2,400/mo vs Austin $1,750/mo, a $7,800/yr difference.
4.Property tax: Seattle (King County) 0.93% effective vs Austin (Travis County) 1.97% effective. Austin charges nearly 2x per dollar — but on much cheaper homes, so absolute property tax bills run roughly $7,900/yr Seattle median vs $11,030/yr Austin median.
5.Industry trade: Seattle wins on Amazon HQ (largest employer in Washington with ~75,000 Seattle-area employees), Microsoft Redmond (~50,000), Boeing aerospace, Starbucks HQ, plus a deep cloud/AI ecosystem (AWS + Azure HQs). Austin wins on Tesla HQ, Oracle HQ, Samsung Austin (largest semiconductor investment outside Korea), NXP, AMD, Meta Austin, Indeed, plus a fast-growing startup scene.

Take-Home + Real Purchasing Power: Seattle vs Austin

Salary	Seattle net	Austin net	Real Δ (COL adj)
$50,000	$42,355	$42,355	+$12,835 Austin
$75,000	$61,593	$61,593	+$18,664 Austin
$100,000	$79,180	$79,180	+$23,994 Austin
$150,000	$113,791	$113,791	+$34,482 Austin
$200,000	$148,927	$148,927	+$45,129 Austin

Net pay: single filer, standard deduction, no 401(k)/HSA. "Real Δ" adjusts take-home by cost-of-living index (Seattle 165, Austin 110; national baseline = 100). 2026 tax year.

Tax-by-Tax Breakdown

Income Tax

Seattle: 0% on wages — Washington has no state income tax. But: 7% capital gains tax above $270K LTCG (2026 inflation-indexed) + 0.58% WA Cares payroll tax

Austin: 0% — Texas has no state income tax

Winner: Austin

On wages, the two cities are tied at $0 state income tax. The Washington complications: (1) WA Cares Fund 0.58% payroll tax applies to all wages ($870/yr at $150K, $1,160/yr at $200K, $2,900/yr at $500K), funding long-term care benefits with a small lifetime credit. (2) WA's 7% long-term capital gains tax on gains above $270K applies to RSU dispositions, ESPP sales, stock sales — major friction for tech workers at Amazon/Microsoft/Meta who realize $300K-$2M in capital gains in equity-rich years. On a $1M LTCG (typical for a Senior PMT or above with 5+ years vested RSUs), WA owes ~$51,000; Texas $0.

Property Tax

Seattle: 0.93% effective (King County, Seattle)

Austin: 1.97% effective (Travis County, Austin)

Winner: Seattle (per-dollar)

On a $700K home: Seattle ~$6,510/yr; Austin ~$13,790/yr — Austin charges 2x Seattle on the same value. But median home prices: Seattle $850K (property tax $7,910/yr) vs Austin $560K (property tax $11,030/yr). Austin's higher rate hits enough to push absolute bills higher than Seattle's despite cheaper homes. Property tax is one of Austin's main offsetting costs versus its no-income-tax advantage.

Sales Tax

Seattle: 10.25% combined (WA state 6.5% + Seattle 3.75%)

Austin: 8.25% combined (TX state 6.25% + Austin 1.0% + Travis County 1.0%)

Winner: Austin

On $50K of taxable household spending, Seattle sales tax runs $5,125/yr versus Austin $4,125 — a $1,000/yr Austin advantage. WA's combined 10.25% is among the highest in the country (WA pays for state services through sales tax in lieu of income tax). Both states exempt groceries; both tax most consumer spending at the full combined rate.

Estate Tax

Seattle: WA: 10-20% above $2.193M exemption (low, indexed)

Austin: Texas: none

Winner: Austin

Washington has the highest top estate tax rate in the country (20% above $9M+) and one of the lower exemption thresholds ($2.193M in 2026, indexed). On a $10M estate, WA owes ~$1.6M in state estate tax; Texas $0. The $2.193M threshold catches many Seattle tech professionals — a long-tenured Microsoft or Amazon employee with appreciated home + retirement + RSU portfolio easily crosses $2.2M by their 50s. WA estate tax is a major planning consideration that Texas eliminates entirely.

Where the 55-Point COL Gap Hits

The 55-point cost-of-living gap (Seattle 165 vs Austin 110) translates to real dollars across most categories. Median home prices: Seattle $850K vs Austin $560K — a $290K gap. Median 1BR rent: Seattle $2,400/mo vs Austin $1,750/mo, a $7,800/yr renters' gap. Both cities have run up significantly since 2018; Austin's rise has been sharper but Seattle's continues at slower pace.

Restaurants and consumer goods run 25-35% cheaper in Austin across most categories, though Austin's restaurant scene has moved upmarket significantly post-2020. Auto: Seattle gas $4.45/gal versus Austin $3.05/gal — structural Austin advantage. Both cities car-dependent though Seattle's bus + light rail covers downtown reasonably well; Austin requires car ownership for nearly all residents.

Climate: Seattle's mild Pacific Northwest climate (rare extremes, 50-75°F most days, 156 rainy days/yr) versus Austin's hot subtropical (95°F+ for 90+ days, 30 freezing days/yr, occasional ice storms). Different lifestyles — Seattle's outdoor recreation (Cascades, Olympic NP, Puget Sound) is non-replicable; Austin's lake/river access plus live-music capital culture is non-replicable.

Net all-in for a $250K single tech professional: Austin runs $20,000-$30,000/yr cheaper than Seattle in real purchasing power for wages-only earners. The gap explodes for equity-realizing tech professionals where WA cap-gains tax hits — at $1M LTCG year, Austin saves $51,000 in cap-gains tax alone, pushing total annual savings to $70,000+. For wage-only mid-career tech workers, the savings are real but bounded by Seattle's competitive housing and structural Pacific Northwest amenities.

Cost of Living Index

Seattle 165 · Austin 110. Austin is 10% above national; Seattle is 65% above. The pricier city is roughly 50% more expensive across the housing-and-consumer basket.

Median Home Price (Q1 2026)

Seattle $850K · Austin $560K. The $290K gap remains meaningful. Both cities have tight inventory; Seattle's rate of appreciation has slowed post-2022, Austin's partially corrected then stabilized.

Median 1BR Rent

Seattle $2,400/mo · Austin $1,750/mo. The $650/month differential ($7,800/yr) is meaningful but smaller than other coastal-vs-Sun-Belt comparisons.

Property Tax (Effective Rate)

Seattle 0.93% · Austin 1.97%. Austin charges 2x per dollar. Absolute bills at median home values: Austin $11,030/yr vs Seattle $7,910/yr — Austin higher despite cheaper homes.

Sales Tax

Seattle 10.25% combined · Austin 8.25%. On $50K of taxable spending, Seattle penalty $1,000/yr. WA's high sales tax substitutes for the missing income tax structure.

Climate + Outdoor Access

Seattle: mild Pacific NW (50-75°F most days), 156 rainy days/yr, gray winters, Cascades/Olympic NP/Puget Sound access. Austin: hot subtropical (95°F+ for 90+ days), mild winters, occasional ice storms, lake/river/live-music culture. Different lifestyles; both excellent for specific preference profiles.

Who Wins for Whom

Single renter, $90K, working remote

Best fit: Austin

State income tax: both $0. WA Cares payroll tax ~$520/yr at $90K (Austin $0). Seattle 1BR ($2,400) versus Austin ($1,750) saves $7,800/yr. Sales tax penalty Seattle ~$1,000/yr. Net Austin advantage: roughly $9,000/yr in real purchasing power. Smaller gap than other coastal-vs-Texas comparisons because both metros have $0 wage tax. Lifestyle differential is the main other consideration.

Family household, $145K, considering relocation

Best fit: Roughly even at this income tier

Wage tax tied at $0. WA Cares $840/yr Seattle penalty. Housing: Austin $10,000/yr cheaper rent or $290K cheaper home. Property tax: Austin penalty ~$3,000/yr higher annual bill on equivalent-spend home. Sales tax Seattle penalty ~$1,000/yr. Net Austin advantage: $8,000-$12,000/yr — meaningful but smaller than what coastal-CA-to-Austin migrants see. Schools comparable (Eanes ISD, Lake Travis ISD vs Bellevue, Lake Washington School Districts).

Mid-career tech worker, $220K wages, modest equity

Best fit: Austin (modest)

Wages: $0 in both. WA Cares ~$1,280/yr Seattle penalty. Housing: Austin $12,000+/yr cheaper. Property tax: Austin ~$3,000/yr higher for buyers. Sales tax Seattle penalty ~$1,000/yr. Net Austin advantage: $12,000-$18,000/yr at this comp tier without significant cap-gains realizations. Both cities have deep tech employer base (Seattle: Amazon, Microsoft, Meta, Google Seattle, dozens of mid-tier; Austin: Tesla, Oracle, Samsung, AMD, Meta Austin, Indeed). Career trajectory comparable.

Senior tech engineer, $400K total comp incl significant RSU vests

Best fit: Austin (clear)

If RSUs vest at $200K-$500K/yr levels, WA capital gains tax (7% above $270K) starts to bite. Senior tech at Amazon/Microsoft regularly realizes $500K-$1.5M in equity over 4-year vesting cycles. On a $1M cumulative LTCG year, WA owes ~$51,000 in cap-gains tax; Austin $0. Combined with $15,000+/yr cost-of-living + housing savings, Austin saves $50,000-$80,000/yr for high-equity tech workers. The WA cap-gains tax is the decisive variable — wages-only it's a wash, equity-rich it's not close.

Tech founder / equity-heavy executive

Best fit: Austin (decisive)

WA's 7% cap-gains tax above $270K LTCG plus the $2.193M estate tax threshold create dual liabilities Texas eliminates. On a $5M founder liquidity event, WA owes ~$331,000 in cap-gains tax; Austin $0. Plus annual estate-tax exposure as portfolio grows. Founders contemplating IPOs, secondary sales, or M&A exits should establish Texas residency well in advance — moves done in the year of the event are commonly contested by WA Department of Revenue. Austin wins decisively for this profile.

Aerospace / Boeing professional, $130K

Best fit: Seattle

Boeing's commercial-aircraft headquarters and final-assembly operations are at Everett and Renton (Seattle metro). The wider supply chain, MROs, satellite-aerospace cluster (BlueOrigin, Spaceflight, dozens of subsystems firms) is concentrated in Puget Sound. Austin has aerospace presence (SpaceX adjacent, Lockheed Martin, plus Texas-A&M-aligned defense firms) but Boeing-track aircraft work is non-replicable in Austin. For commercial-aircraft engineering, Seattle is the essential anchor.

Retiree couple, $80K combined retirement income

Best fit: Austin

Both states $0 wage and pension/IRA income tax. WA estate tax exposure ($2.193M threshold) is the major retiree consideration — long-tenured Seattle homeowners with appreciated homes plus retirement portfolios easily cross threshold by their 60s. Austin eliminates this. Plus Austin housing costs $5,000-$8,000/yr lower for new buyers. Net Austin advantage: $5,000-$10,000/yr in retirement spending power, plus the estate-planning relief. Caveat: Seattle's healthcare quality (Fred Hutchinson, UW Medicine, Swedish) ranks among the best in the country; Austin's medical cluster is regional.

Should You Actually Move?

Texas-Washington migration is bidirectional but with Austin gaining net inflow from Seattle — a smaller flow than the SF-to-Austin corridor but real. Austin tech-employer growth (Tesla HQ relocation 2021, Oracle 2020, Samsung's $17B chip fab investment, Meta's Austin office expansion) has pulled tech-worker migration. Seattle has retained its talent base better than SF; Microsoft and Amazon's Seattle-anchored employment hasn't seen the same migration outflow as SF's ecosystem.

Establishing Texas residency from Washington is straightforward documentation: 183+ days, Texas driver's license, voter registration, primary care, sale or long-term rental of WA home. Washington's Department of Revenue does run cap-gains-tax-related residency audits for high earners realizing significant capital gains in years of relocation — moves done in the same calendar year as a major liquidity event are routinely contested. Move at least 12-18 months before any major equity event for clean residency separation.

Austin downside risks: housing run-up has narrowed cost arbitrage; high property tax that scales with home values; summer heat (95°F+ for 90+ days); occasional ice storms; the chronic lifestyle complaint that Austin has lost some of its 'weird' character with the tech-influx influx. Seattle downside risks: WA cap-gains tax + WA Cares + estate tax create equity-realization friction Texas doesn't have; gray rainy winters (164 rainy days); cost of living continues to escalate; affordability crunch for moderate-income workers. For high-equity tech professionals, Austin's economics dominate. For Boeing-track aerospace, Microsoft/Amazon-anchored career tracks, and households who specifically value Pacific Northwest lifestyle, Seattle retains advantages.

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Seattle vs Austin: The Honest Verdict

Austin wins for high-equity tech professionals where Washington's 7% cap-gains tax + 20% top estate-tax rate + WA Cares payroll friction add up to meaningful annual costs Texas eliminates. For a senior tech worker at Amazon or Microsoft realizing $500K-$2M/yr in RSU vests and stock sales, the Austin savings cross $50,000-$100,000/yr. For wage-only mid-career tech workers (where the equity drag doesn't apply) the savings are real but bounded — $10,000-$20,000/yr in housing and sales-tax differentials, partly offset by Austin's higher property tax. Seattle retains structural advantages for Boeing-track aerospace, the deepest cloud/AI ecosystem (AWS + Azure HQs + Anthropic Seattle expansion), and households who prioritize Pacific Northwest lifestyle.

Single highest-leverage move: model the WA cap-gains tax exposure carefully if you're equity-rich and contemplating staying in Seattle long-term. Many Microsoft and Amazon employees underestimate how the cap-gains tax compounds across 5-10 years of significant RSU vesting — the cumulative tax often exceeds the entire housing arbitrage to Austin. For founders and executives planning liquidity events, establish Texas residency 12-18 months before any major equity event to avoid contested residency audits. For wage-only workers, the move is more about lifestyle preferences than tax economics.

Deep Dive Into Each City

Seattle Cost of Living →

Standalone Seattle guide: COL index 165, median rent and home prices, daily expenses, salary requirements, and a Seattle neighborhood-by-neighborhood breakdown.

Austin Cost of Living →

Standalone Austin guide: COL index 110, median rent and home prices, daily expenses, salary requirements, and a Austin neighborhood-by-neighborhood breakdown.

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