California vs Texas: Federal Employee Take Home Pay 2026
How does California (46.34% locality pay) compare to Texas (35.0% locality pay) after all deductions and state taxes?
Side-by-Side: Net Take Home Pay by Grade (Step 5)
| Grade | California Annual | California Net/PP | Texas Annual | Texas Net/PP | Net Diff/PP | Net Diff/Year |
|---|---|---|---|---|---|---|
| GS-5 | $57,715 | $1,535.13 | $53,243 | $1,458.39 | +$76.74 | +$1,995 |
| GS-7 | $71,493 | $1,886.89 | $65,953 | $1,810.74 | +$76.15 | +$1,980 |
| GS-9 | $87,451 | $2,247.46 | $80,675 | $2,206.14 | +$41.32 | +$1,074 |
| GS-11 | $105,808 | $2,632.90 | $97,609 | $2,616.58 | +$16.32 | +$424 |
| GS-12 | $126,817 | $3,074.03 | $116,990 | $3,086.33 | -$12.30 | -$320 |
| GS-13 | $150,802 | $3,568.76 | $139,116 | $3,621.88 | -$53.12 | -$1,381 |
| GS-14 | $178,204 | $4,125.02 | $164,395 | $4,216.97 | -$91.95 | -$2,391 |
| GS-15 | $197,200 | $4,533.10 | $193,369 | $4,912.36 | -$379.26 | -$9,861 |
Positive differences favor California; negative favor Texas. Net pay includes all federal deductions plus applicable state tax.
Full Deduction Breakdown: GS-12 Step 5
| Deduction | California | Texas | Difference |
|---|---|---|---|
| Gross Biweekly | $4,877.58 | $4,499.62 | +$377.96 |
| FERS (4.4%) | $214.61 | $197.98 | +$16.63 |
| TSP (5% Traditional) | $243.88 | $224.98 | +$18.90 |
| FEHB (Self Only) | $126.29 | $126.29 | +$0.00 |
| Social Security (6.2%) | $294.58 | $271.15 | +$23.43 |
| Medicare (1.45%) | $68.89 | $63.41 | +$5.48 |
| Federal Tax | $604.80 | $529.47 | +$75.33 |
| State Tax | $250.49 | $0.00 | +$250.49 |
| Total Deductions | $1,803.55 | $1,413.28 | +$390.27 |
| Net Biweekly | $3,074.03 | $3,086.33 | -$12.30 |
Key Differences: California vs Texas
Locality Pay
California carries a 46.34% locality adjustment while Texas has 35.0%. For a GS-12 Step 5, this means California gross pay is $126,817 vs $116,990 in Texas — a $9,827/year difference in gross pay.
State Income Tax
California state tax: California (up to 13.3%). Texas state tax: No state income tax. For a GS-12 Step 5, state tax costs $250.49/pp in California vs $0.00/pp in Texas — a $250.49/pp difference.
Net Take Home
After all deductions, the GS-12 Step 5 net difference is $12.30/pp ($320/year), favoring Texas. Higher locality pay in California is partially offset by California (up to 13.3%) state taxes.
Cost of Living Context
Take-home pay is only one side of the equation. Federal employees should also consider local housing costs, transportation, and other cost-of-living factors when comparing locations. A higher take-home in one area may be offset by significantly higher living expenses. OPM's locality pay system attempts to account for these differences, but the adjustment may not fully reflect actual cost variations.
Impact of FERS Tier: GS-12 Step 5
| FERS Tier | California Net/PP | Texas Net/PP | Diff |
|---|---|---|---|
| FERS (0.8%) | $3,194.66 | $3,212.68 | -$18.02 |
| FERS-RAE (3.1%) | $3,117.59 | $3,131.96 | -$14.37 |
| FERS-FRAE (4.4%) | $3,074.03 | $3,086.33 | -$12.30 |
FERS tier affects the dollar amount of pension deductions. The 0.8% rate (pre-2013 hires) vs 4.4% rate (post-2014 hires) creates a significant difference in take-home pay regardless of locality.
Frequently Asked Questions
How much more do federal employees take home in California vs Texas?
For a GS-12 Step 5, California (46.34% locality) yields $3,074.03/pp net while Texas (35.0% locality) yields $3,086.33/pp net — a $12.30/pp difference favoring Texas.
Does higher locality pay in California mean higher take-home pay?
Not necessarily. California has 46.34% locality pay vs 35.0% in Texas, resulting in higher gross pay. However, state income taxes and higher marginal federal tax rates can reduce or even reverse the advantage. The net impact depends on your specific grade, FERS tier, and deduction profile.
What role does state tax play in the California vs Texas comparison?
California applies California (up to 13.3%). Texas applies No state income tax. For a GS-12 Step 5, the state tax difference is $250.49/pp. State tax can be the deciding factor when locality pay differences are modest.
How does the comparison change for GS-15 employees?
At higher grades, the pay cap ($197,200 in 2026, Executive Level IV) may limit locality pay in high-cost areas. GS-15 Step 10 salaries in areas like San Francisco hit this cap, meaning the gross pay advantage of high-locality areas shrinks at the top of the pay scale.
Should I transfer to a different locality for higher take-home pay?
Take-home pay is one factor. Federal employees should also consider cost of living (housing, transportation, childcare), career opportunities, position availability, quality of life, and remote work policies. A transfer to a no-tax state with lower locality pay may or may not improve your overall financial position.
More Comparisons
Estimate assumptions: Single filer, FERS-FRAE (4.4%), 5% Traditional TSP, average FEHB Self Only ($126.29/pp), no FEGLI.