7 Benefits of Moving From California to Hudson Bend, TX

If you're thinking about moving from California to Hudson Bend, Texas, there are some clear benefits.

Texas has no state personal income tax. Hudson Bend sits along Lake Travis, offers a wide mix of homes and lot sizes, and gives you access to Austin without living directly in the city.

But there are also a few things Californians need to plan for, especially property taxes, insurance, summer heat, and traffic.

I made the California-to-Texas move myself, so I understand how different the two markets can feel.

And while "no state income tax" gets most of the attention, that's only one part of the move.

Hudson Bend is an unincorporated community in Travis County, ZIP code 78734. It sits mostly on a peninsula surrounded by Lake Travis and is close to Mansfield Dam.

It's not Austin. It's not Lakeway. And it has a very different feel from many California suburbs.

Here are seven benefits of moving from California to Hudson Bend, plus a few things you should know before making the move.

1. Texas Has No State Personal Income Tax

One of the biggest financial differences between California and Texas is state income tax.

Texas does not have a state personal income tax.

California does, with rates that can reach 12.3%, plus an additional 1% tax on taxable income over $1 million.

Depending on your income, moving to Texas can make a noticeable difference in how much of your paycheck, retirement income, or investment income you keep.

But don't forget about California taxes after you move

Moving to Texas doesn't automatically end every California tax issue.

For example, if you sell a California home after you move, California may still tax the gain because the property is located in California.

California escrow may also withhold 3⅓% of the sales price unless you qualify for an exemption or another withholding calculation.

On a $900,000 home sale, that could mean around $30,000 withheld at closing.

That doesn't necessarily mean you owe $30,000 in tax. But it could affect how much cash you have available when you purchase your Texas home.

If you're planning to sell in California and buy in Texas, talk with a CPA before you list so you understand the timing and possible tax impact.

This is general information and not tax advice.

2. Texas Has Strong Homestead Benefits

Here's one difference that surprises many California homeowners:

Texas property taxes can be much higher.

If you've owned your California home for a long time, Proposition 13 may have kept your taxable value much lower than your home's current market value.

You won't have that same system in Texas.

But Texas does offer important homestead benefits for people who own and live in their primary residence.

These can include:

• A $140,000 school district homestead exemption

• An additional exemption for qualifying homeowners age 65 or older or disabled

• A 10% annual cap on increases to your homestead's appraised value once the cap applies

Hudson Bend also has another difference: it is unincorporated.

That means you generally won't have a city property tax line like you would inside Austin or Lakeway.

You can still have taxes from Travis County, Lake Travis ISD, emergency services districts, and possibly other local taxing districts depending on the property.

What I recommend before buying

Don't base your future tax bill on what the current owner is paying.

The seller may have exemptions or a much lower taxable value.

Before making an offer, check the property through the Travis Central Appraisal District and estimate taxes based on your expected purchase price.

That gives you a much more realistic idea of what your monthly payment may look like.

3. Lake Travis Becomes Part of Everyday Life

For many Californians, getting to the beach or another outdoor destination can mean traffic, parking, and planning your whole day around it.

Hudson Bend is different.

Lake Travis surrounds much of the community, so being near the water becomes part of everyday life.

Mansfield Dam Park is right next to Hudson Bend and offers boating, swimming, trails, diving, and lake access. Arkansas Bend Park is also nearby.

If boating, paddleboarding, fishing, or simply living near the water is part of the lifestyle you're looking for, Hudson Bend has a lot to offer.

But there is one important thing to understand:

Lake Travis is a reservoir, and the water level changes.

During drought years, lake levels can drop quite a bit and boat ramps or shoreline access can be affected.

If you're buying a waterfront or water-view property, don't rely only on listing photos.

Look at how the property and shoreline perform during both high- and low-water periods.

That's something I also cover in my guide, Moving to Hudson Bend, TX: What You Should Know First.

4. You'll Find More Variety in Homes and Lots

If you're coming from a California tract-home neighborhood, Hudson Bend may feel very different.

You won't see the same floor plan repeated every few houses.

Hudson Bend developed over many years, so you'll find a mix of:

• Older lake homes

• Mid-century homes

• Updated properties

• Newer custom homes

• Waterfront homes

• Lake-view homes

• Smaller lots

• Larger lots with more space

That variety is one of the things people like about Hudson Bend.

But it also means you need to look at each property individually.

Deed restrictions can vary by neighborhood. Some areas may have a property owners association while others may not. Some homes are connected to different water systems, and older properties may use septic systems.

Don't assume two homes on the same street have the same setup.

5. Austin Is Close Without Living in Austin

Hudson Bend is about 16 miles northwest of downtown Austin.

That makes it possible to enjoy Austin for work, restaurants, concerts, entertainment, and events without living directly in the city.

For someone working from home or commuting only a few days a week, that can be a good balance.

But there is one thing you should test before buying:

RM 620 traffic.

Traffic along 620 can get heavy, especially during commute times.

If you expect to drive into Austin regularly, test the route during the actual hours you'll be traveling.

A Saturday afternoon drive won't give you the full picture.

6. Lakeway and Bee Cave Are Close for Everyday Needs

Some people worry that moving to a lake community means giving up easy access to hospitals, grocery stores, shopping, and restaurants.

That's not really the case in Hudson Bend.

Lakeway and Bee Cave are nearby and offer most of the services you'll need for everyday life.

Baylor Scott & White Medical Center – Lakeway is also close by and provides emergency and hospital services.

You'll find grocery stores, restaurants, shopping, medical offices, fitness centers, and other services within a relatively short drive.

So while Hudson Bend can feel quieter and more relaxed, you're not far from the things you use every week.

If you're deciding between the two areas, I also have a guide explaining Hudson Bend vs. Lakeway: What's the Difference?

7. Hudson Bend Is Served by Lake Travis ISD

Hudson Bend is served by Lake Travis Independent School District.

For families moving from California, having one main school district serving the community can make the search a little easier.

But school assignments can still vary by property.

Attendance zones can also change over time.

If schools are important to your move, always check the exact property address with Lake Travis ISD before making an offer.

California vs. Hudson Bend: Quick Comparison

	California	Hudson Bend, TX
State personal income tax	Yes, rates vary by income	None
Property taxes	Prop 13 limits assessed-value increases	Generally higher; homestead exemptions may help
Local government	Many areas are incorporated cities	Hudson Bend is unincorporated
Water access	Coast, lakes and recreation vary by area	Lake Travis surrounds much of the community
Housing style	Many tract and planned communities	Mix of older, newer and custom homes
Lot sizes	Often more consistent within neighborhoods	Can vary quite a bit
Access to Austin	N/A	About 16 miles from downtown

What Doesn't Necessarily Get Better When You Move

I think this part matters just as much as the benefits.

If you're considering a move, you should know what you're getting into before you buy.

Property taxes may be higher

If you've owned your California home for many years and have a low Prop 13 tax basis, Texas property taxes may be a shock.

Always calculate the expected tax bill before deciding what you can comfortably afford.

Summers are hot

Central Texas summers are long and hot.

Look at the home's HVAC system, insulation, shade, windows, and expected electric costs.

A pool may also move higher on your wish list than you expected.

Home insurance can be expensive

Texas homeowners deal with risks that may be different from what you're used to in California, including hail, wind, storms, and wildfire exposure.

Get an insurance quote early in the buying process instead of waiting until right before closing.

Utilities and infrastructure vary

One Hudson Bend property may have a very different setup from another.

Depending on the address, you'll want to check:

• Water provider

• Septic or sewer

• Flood zone

• Internet service

• Deed restrictions

• Property owners association

• Road access

These details matter, especially if you're buying an older property or something close to the lake.

RM 620 traffic is real

Hudson Bend isn't far from Austin on a map.

But travel time can change quite a bit depending on traffic.

If commuting is part of your normal routine, test the drive before buying.

None of these things mean Hudson Bend isn't a good place to live.

They just mean you should understand the full picture before making the move.

Frequently Asked Questions

Is Hudson Bend part of Austin or Lakeway?

No.

Hudson Bend is an unincorporated community in Travis County.

Many properties have an Austin, TX 78734 mailing address, but Hudson Bend is not inside the City of Austin or the City of Lakeway.

Do I still owe California taxes after moving to Texas?

Possibly.

California can still tax California-source income, including certain gains from California real estate.

There may also be withholding when you sell a California property.

If you're planning your California sale around your Texas purchase, talk with a CPA before listing so you understand how the timing could affect you.

How do I get the Texas homestead exemption?

After you buy the home and use it as your primary residence, you can apply for the homestead exemption through the Travis Central Appraisal District.

There is no fee to apply.

It's one of the first things I recommend homeowners take care of after moving into their Texas home.

Thinking About Moving From California to Hudson Bend?

I've made the California-to-Texas move myself, and I still work in both markets.

That gives me a different perspective when helping someone make the same move.

It's not just about finding a house in Texas.

We can look at the full picture — when to sell your California home, what your Texas property taxes may look like, commute times, insurance, neighborhoods, lake access, and which parts of Hudson Bend actually fit the lifestyle you're looking for.

If you're thinking about making the move, call or text me at 949-484-9486 to set up a private consultation.

Amanda Zito, REALTOR®
Real Broker, LLC
TX TREC #840088 | CA DRE #01740063
SoldByZito.com