The 6-Month Cross-State Master Checklist: Syncing Your California Home Sale with a Texas Hill Country Purchase

A cross-state move from California to the Texas Hill Country involves two real estate transactions that must be carefully coordinated. This checklist walks through each phase of the six-month countdown so you can manage both simultaneously.

Six months before your target move date, begin reviewing the financial and legal implications of leaving California. This phase should focus on planning, record collection, and professional advice. Sign only those agreements that fit the actual transaction schedule after reviewing their terms.

Action items:

• Interview at least two cross-state CPAs who have experience with California-to-Texas relocations. You are looking for someone who understands both California's residency rules and Texas's lack of state income tax [3].
• Review your federal and California home-sale gain exposure. The Section 121 exclusion generally requires both ownership of the home and use of it as your principal residence for at least two years during the five-year period ending on the sale date. A qualifying individual may exclude up to $250,000 of gain. Married taxpayers filing jointly may qualify for up to $500,000 only if the joint-return requirements are satisfied, including the applicable ownership and use tests and the rule restricting use of another home-sale exclusion during the preceding two years [4]. Moving out before the sale does not automatically eliminate the exclusion, provided the ownership and use tests remain satisfied on the sale date. However, prior rental or business use, depreciation deductions, a previous home-sale exclusion, a reduced-exclusion event, or a long delay before selling can change the result. Gain attributable to depreciation deductions allowed or allowable for business or rental use for periods after May 6, 1997, generally cannot be excluded under Internal Revenue Code Section 121 and may be subject to depreciation-recapture rules. Have the CPA calculate both federal and California consequences before relying on the exclusion. For a deeper walkthrough, see our Section 121 exclusion guide for cross-state relocators.
• Retain the original purchase closing statement, invoices and proof of payment for qualifying capital improvements, records of casualty losses or insurance reimbursements, depreciation schedules for any rental or business use, and documents showing selling expenses. These records may affect adjusted basis and taxable gain.

California does not currently impose a general tax merely because an individual changes residence to another state. The phrase "California exit tax" is an informal and often misleading label. California instead taxes residents on income from all sources until residency ends and continues to tax nonresidents on California-source income after they leave. Gain from California real estate remains California-source income even when the seller is a Texas resident [16].

What California does enforce:

• Real estate withholding: For transactions subject to California real-estate withholding, the real-estate escrow person or remitter generally withholds either 3 1/3% (.0333) of the seller's share of the sales price or an alternative amount calculated from the estimated taxable gain, as elected and certified on Form 593 [6]. Exemptions and no-withholding certifications may apply. Withholding is a prepayment credited on the seller's California return; it is not the final tax liability.

California Form 593 Reality Check

The 3 1/3% (.0333) withholding on your California home sale is not an extra tax or a penalty for moving. It is a mandatory prepayment of your estimated state capital gains tax. If your transaction qualifies for the Section 121 principal residence exclusion, or if your actual tax liability is lower than 3 1/3% (.0333) of the gross sales price, you will claim a refund for the overpayment when you file your final California return the following spring [6].

• Ongoing California-source income tax: California taxes nonresidents on income derived from California sources, including rental property, business income, and capital gains on California real estate [3].
• Residency determination: California residency is determined from domicile and whether a person's presence in or absence from California is temporary or transitory. There is no universal 183-day rule that automatically establishes or ends California residency. Spending more than nine months in California during a taxable year creates a rebuttable presumption of residency, but shorter periods can still result in residency depending on the facts. A former California domiciliary must show both abandonment of the California domicile and establishment of a new domicile elsewhere [3].

The practical takeaway: California does not currently impose a general tax merely because a person leaves the state. However, a former resident may continue to owe California tax on California-source income and may need to substantiate the date and circumstances of the residency change.

If you are working remotely for a California employer while establishing Texas residency, day tracking matters. Day count is one factor in California's facts-and-circumstances residency analysis. Extended or recurring California presence, especially when combined with failure to abandon a California domicile or establish a new domicile elsewhere, can support a residency finding; no single day-count threshold controls in every case [3].

For an employee who becomes a nonresident, the employer's California location alone generally does not make wages California-source income. Compensation is generally sourced to where the employee physically performs the services. Workdays physically spent in California can remain California-source days. Stock options, RSUs, deferred compensation, partnership income, consulting income, and business ownership require separate analysis [3].

Action items:

• Begin a daily log noting your physical location, work activities, and any California-based business activities.
• California's 546-day safe harbor treats a California domiciliary who leaves the state under an employment-related contract for at least 546 consecutive days as a nonresident, provided income from intangible property does not exceed $200,000 in any covered tax year and you spend no more than 45 days in California per year [3]. The safe harbor also does not apply when the principal purpose of the absence from California is to avoid personal income tax. This provision is designed for people who retain their California domicile while working elsewhere on a defined-term contract -- most commonly a temporary overseas assignment -- and intend to return. If you are permanently relocating to Texas and establishing a genuine new domicile here, you generally do not need to satisfy the 546-day rule at all; you can establish nonresidency under the standard facts-and-circumstances domicile test once you have actually moved, bought or leased a Texas home, obtained a Texas driver's license, and taken the other steps outlined in this checklist. The 546-day safe harbor is a narrow employment-contract rule, not a general waiting period that permanent relocators must satisfy. A person permanently abandoning California domicile ordinarily relies on the standard residency analysis. Confirm which framework applies to your situation with your CPA.
• Maintaining a contemporaneous travel and residency log can help substantiate the timing and circumstances of the residency change, but no single record is conclusive; the FTB considers the totality of the taxpayer's connections and conduct.

When you move during the year, California generally taxes your worldwide income received while you were a California resident, plus California-source income received while you were a nonresident. This includes wages earned in California, rental income from California property, and capital gains on California real estate.

Continuing California connections can affect the residency analysis, but no single item is decisive. After the actual move, update voter registration, driver license, vehicle registration, mailing addresses, insurance, financial records, professional relationships, and other records consistently with the facts. Do not change records before the move if doing so would inaccurately suggest that California residency ended earlier than it did. Retaining a California account or relationship for a legitimate reason does not by itself establish residency; document the reason and discuss material continuing ties with the CPA.

Your CPA should prepare California Form 540NR for the move year. Schedule CA (540NR) identifies total full-year income for purposes of determining the effective California tax rate and separately identifies the amount taxable by California: worldwide income received while you were a California resident plus California-source income received while you were a nonresident. California generally applies an effective rate based on total taxable income to the portion taxable by California. Therefore, retain complete records for the entire year; do not omit post-move non-California income from the information provided to your tax professional merely because that income is not itself California-source income. Match your moving-day logs to the return. The California departure date is a facts-and-circumstances determination. Physical departure, abandonment of the former California domicile, establishment of a Texas domicile, family location, employment activity, housing, and continuing California connections can affect the date. Ask the CPA to document the support for the date reported on Form 540NR [5][7].

If you have school-age children, begin researching enrollment requirements now. Texas school districts require specific documentation, and some items take time to obtain from California schools.

Boerne ISD enrollment [8]:

• Review the current online enrollment instructions before uploading documents. The district currently lists a full-page, recent water, gas, or electric utility bill for a homeowner; it states that a cell-phone bill is not accepted.
• A renter should provide a current signed lease.
• The enrolling parent or guardian should also provide a current government-issued photo ID and the student's birth certificate, valid passport, or other accepted vital-statistics document.
• A Social Security number is recommended but not required.

Comal ISD new-student enrollment [9]:

• Proof of residency dated within the preceding 30 days
• The student's immunization record
• An unofficial transcript or most recent report card
• The student's birth certificate
• The parent or guardian must provide proof of identity and custody documentation when required. Follow the district's current Skyward instructions and campus-specific follow-up process.

Action items:

• Request transcripts, report cards, special-education records, evaluations, accommodation plans, discipline records when relevant, and course descriptions early enough to resolve any delay before enrollment.
• Compare the student's record with the current Texas DSHS grade-specific requirements. For 2026-27, Texas requires vaccines including two Hepatitis A doses for K-12 students and a meningococcal dose for grades 7-12, subject to age, interval, provisional-enrollment, and exemption rules. Do not assume a California-compliant record automatically satisfies Texas requirements [15].
• Identify the specific campus your child will attend based on your prospective Texas address. Both Boerne ISD and Comal ISD assign schools by attendance zone.

Approximately three months before the target move can be a useful planning checkpoint, but the actual listing date should be set with the California listing agent after considering property preparation, local inventory, expected market time, buyer financing, the desired possession date, and the Texas purchase strategy. Listing preparation, market time, contract negotiation, and escrow length vary with the property, market, buyer financing, contingencies, and negotiated contract [1].

Action items:

• Interview listing agents who have experience with cross-state transitions. You need someone who understands the coordination required when the seller is simultaneously purchasing out of state.
• Discuss pricing strategy with the listing agent. The market-supported list price should be based on the property's condition, comparable sales, competing inventory, buyer demand, and the chosen marketing strategy. Capital-gains exposure and the Texas purchase budget affect the seller's net-proceeds requirements and whether to accept an offer; they do not change the California property's market value.
• Prepare the home for sale. Address deferred maintenance, declutter, and consider pre-inspection to identify issues before the buyer's inspection period.
• Confirm your Section 121 exclusion eligibility with your CPA before listing.

Simultaneously begin searching for your Texas Hill Country home. The Texas contract controls the closing date. Financing, appraisal, title, survey, HOA document, repair, and sale-contingency requirements can affect whether that date is achievable. [2] If you are considering new construction, your timeline may be significantly longer, particularly for a to-be-built home rather than a completed or nearly completed inventory home.

A six-month resale timeline may not work for a home built from the ground up. A completed inventory home or nearly completed production home may fit the countdown, but a to-be-built production or custom home can require substantially more time. Builder contracts often do not use the standard TREC resale form or provide the same option-period rights. Before relying on this checklist, obtain the builder's written construction schedule, deposit and cancellation rules, financing deadlines, inspection rights, change-order procedures, completion standard, warranty, and remedies for delay. Maintain a temporary-housing and storage contingency.

Action items:

• Get preapproved with a Texas lender. Preapproval letters are time-sensitive, but validity and reverification requirements vary by lender and loan program. Ask exactly what has been verified, how long the letter may be used, what remains conditional, and what must be updated before underwriting and closing. Do not assume that "prequalification" and "preapproval" represent an identical level of review; ask the lender to explain what information and documentation were evaluated.
• From preapproval through closing, do not change jobs, open or close credit accounts, finance a vehicle, co-sign a loan, move large undocumented sums, or materially change the source of the down payment without first consulting the lender. Continue responding promptly to requests for updated bank, employment, sale-proceeds, and tax documents.
• If you are financing, discuss construction-to-permanent loans versus standard purchase mortgages with your lender.
• Work with a local agent who knows the Hill Country market, school zones, commute patterns, and neighborhood characteristics. For a side-by-side comparison of the most popular family communities, see Boerne vs. Fair Oaks Ranch.
• Do not use the seller's current tax bill as the buyer's future tax estimate. The seller may have a homestead appraisal cap, age-65 tax ceiling, disabled-veteran exemption, or other exemption that will not transfer. See our Boerne property tax guide for local tax details. New-construction tax records may reflect only the lot or an incomplete improvement. Estimate the buyer's taxes using the relevant taxing units, current tax rates, likely appraised value, expected exemptions, and any MUD, PID, ESD, or other special-district charges. Provide the estimate to the lender before finalizing the budget.

Texas real estate contracts include a unique feature called the "option period". A negotiated termination option may give the buyer an unrestricted right to terminate until the deadline written into the contract. The number of days and option-fee amount are negotiable; TREC does not prescribe a standard five-to-ten-day period or a standard $100-to-$500 fee. The right must be created and exercised under the actual contract terms. Builder, auction, commercial, farm-and-ranch, and other nonstandard contracts may work differently [2].

How it works:

• Under the current TREC resale contract, the buyer delivers the earnest money and option fee to the named escrow agent, generally within three days after the effective date, subject to the contract's weekend and legal-holiday rule. Time is of the essence. The escrow agent is authorized to release the option fee to the seller [2].
• If the buyer timely terminates under the termination option, the option fee is generally not refunded and the earnest money is generally returned, subject to the contract. If the transaction closes, the TREC resale contract credits the option fee to the sales price [2].

Action items:

• Plan your option-period inspections to coincide with a visit to Texas. You will want to be physically present for the home inspection, or designate someone you trust to attend on your behalf.
• Schedule specialty inspections as appropriate for the specific property. The buyer and appropriate professionals should select inspections based on the property's characteristics. Common Hill Country considerations include: foundation and drainage; roof and hail history; HVAC sizing and age; wood-destroying insects; private well production, storage, treatment, and water quality; septic design, permit, maintenance records, and inspection; pool and related equipment; floodplain and drainage channels; wildfire and brush exposure; propane tank ownership or lease; internet provider and actual service availability; private-road maintenance and legal access; surveyed boundaries and encroachments; HOA/POA restrictions and resale certificate; MUD, PID, ESD, and other special-district costs; mineral reservations, easements, and deed restrictions. Our guides to sellers disclosure, septic systems, and well water in the Hill Country can help.
• During the negotiated option period, the buyer should prioritize inspections, specialist evaluations, repair estimates, and any related decision about terminating or proceeding. Title, survey, financing, appraisal, homeowners-association, and other deadlines are separately governed by the contract and may not coincide with the option-period deadline [2].
• Review the entire title commitment, exception documents, and survey. Schedule B generally identifies exceptions that may remain outside the title policy's coverage, including recorded easements, restrictions, mineral reservations, and other matters. Schedule C generally identifies requirements that must be satisfied before the title company will issue the policy, such as releases, payoffs, corrective documents, or proof of authority. Do not rely on the title commitment alone to determine physical access, boundaries, encroachments, or visible uses of the land. Compare it with the survey and on-site conditions. If an exception, access issue, mineral reservation, restriction, or Schedule C requirement is unclear, ask the title company for factual information and have a Texas real-estate attorney advise you on its legal effect [14]. A title commitment does not necessarily determine the complete ownership or value of minerals, water rights, or other severed interests. If those rights are material to the purchase, ask the title company and a qualified Texas real-estate attorney what the proposed policy will and will not insure and whether a separate mineral-title investigation is appropriate [14].
• Obtain written homeowners-insurance quotes during the option period, not shortly before closing. Confirm whether the insurer will cover the roof at replacement cost or actual cash value; review wind, hail, wildfire, water-damage, foundation, service-line, pool, outbuilding, and animal-liability provisions; and compare deductibles as dollar amounts. Ask whether roof age, prior claims, brush exposure, distance from a fire station or hydrant, or property condition affects eligibility. Check the FEMA flood designation and obtain a separate flood quote when appropriate. Most homeowners policies do not cover flood damage. Insurance cost or unavailability can affect the monthly payment and the lender's ability to close [18][19].

The signed contract controls. Option, earnest-money, title-objection, financing, appraisal, HOA document, closing, and possession deadlines should be calculated from the executed contract and any amendments rather than from this general checklist.

Confirm whether employer, Marketplace, Medicare Advantage, Medicare Part D, or other coverage will serve the new Texas address and providers. A move can create a special enrollment opportunity, but eligibility and timing depend on the plan and prior coverage. Compare networks, prescriptions, specialists, and effective dates before canceling existing coverage. Refill critical prescriptions, obtain copies of medical records, and identify new primary, specialty, dental, behavioral-health, and veterinary providers [20][21].

This is the most critical coordination point. Your California sale and Texas purchase must close within a compatible window to avoid a gap in housing or a cash-flow crunch.

The typical timeline:

• Listing preparation, market time, contract negotiation, and escrow length vary with the property, market, buyer financing, contingencies, and negotiated contract. Establish the working schedule with the California listing agent and escrow holder. In California, escrow ordinarily releases sale proceeds only after the escrow conditions are satisfied and recording is confirmed. Exact availability depends on the escrow holder, recording time, banking cutoff times, weekends, holidays, and the seller's bank. In Texas, signing documents does not by itself guarantee that the purchase is funded or that keys can be released. Confirm the actual sequence with both settlement offices [1].
• The Texas contract controls the closing date. Financing, appraisal, title, survey, HOA document, repair, and sale-contingency requirements can affect whether that date is achievable. In a typical Texas transaction, a title company often serves as title insurer, escrow agent, and settlement agent. Signing, funding, recording, possession, and release of keys are related but not necessarily simultaneous events. The contract, lender, and title company determine when the transaction is funded and when possession transfers. A seller's temporary lease can move possession to a later date [2].

Before making the Texas offer, determine whether the purchase is contingent on the California sale, whether the lender requires that sale to close, and whether the buyer can qualify while carrying both homes. Ask the Texas agent and lender whether the transaction calls for the TREC Addendum for Sale of Other Property by Buyer or another written contingency. Alternatives may include a California seller rent-back, temporary housing, bridge financing, a home-equity strategy established before listing, or purchasing after the sale. Each alternative has qualification, tax, cost, and possession risks.

Action items:

• Confirm the funding, recording, possession, and disbursement sequence with the California escrow holder and the Texas title company or settlement agent. Also confirm the lender's requirements and create a written contingency plan in case the California proceeds are delayed.
• If there is a gap between closings, arrange temporary housing. If temporary housing may be needed, verify actual availability, price, pet restrictions, lease terms, and cancellation rules early; do not assume that a suitable short-term rental will be available for the required dates.

One month before your move date, confirm all logistics for the physical relocation.

Action items:

• Obtain written estimates from several interstate movers based on a detailed inventory or physical/virtual inspection. Confirm each company's U.S. DOT number, federal operating status, insurance, complaint history, and whether it is the actual carrier or only a broker. Require the mover or broker to provide the FMCSA 'Your Rights and Responsibilities When You Move' booklet. Compare written binding and nonbinding estimates, and ask whether the mover offers a written guaranteed-not-to-exceed arrangement. Review the conditions under which the mover may issue a revised estimate or impose additional charges. Inventory every item; and understand all packing, shuttle, stair, long-carry, storage, and delivery charges [10].
• Choose valuation protection deliberately. Full Value Protection and Released Value are not equivalent. Released Value generally limits the mover's liability to 60 cents per pound per article, which can produce almost no recovery for valuable lightweight property.
• Carry identification, closing documents, medication, medical equipment, jewelry, irreplaceable records, computers and backups, chargers, pet records, several days of clothing, and essential school or employment materials with you. Do not place these items in the moving truck. Confirm prohibited and hazardous items with the mover before packing.
• Reserve the mover as early as practical after the moving dates are dependable; availability varies by route, mover, shipment size, and season.
• Confirm the mover's delivery window.
• Arrange for electricity, water, gas or propane, internet, security, trash, and any required rural services to begin no later than the date possession transfers. In Texas heat, do not permit electricity or HVAC service to lapse. If possession is delayed by a seller lease, use the contractual possession date rather than the signing date.
• Arrange for utility disconnection at your California home for the date possession transfers, accounting for any rent-back.
• File a change of address with USPS at least two weeks before the move.
• Notify your employer, banks, insurance companies, and subscription services of your new address.

Before leaving California, gather documents you may need for the California and federal tax returns, Texas vehicle and driver-license transactions, school enrollment, insurance, the Texas closing, and future residency documentation.

Action items:

• California school records and immunization forms
• Vehicle registration and driver's license documents -- note these have different deadlines: Vehicle registration must be completed within 30 days of moving to Texas, while a new resident may drive on a valid, unexpired out-of-state license for up to 90 days after moving and must obtain the Texas license within that period [12][13].
• Pet vaccination records (Texas counties may have specific requirements)

To qualify for the general residence homestead exemption, an individual must own an interest in the property, occupy it as the principal residence, and not claim another residence homestead in or outside Texas. To apply, file Texas Comptroller Form 50-114 with the appraisal district for the county in which the property is located. Filing directly with the appraisal district is free. Verify the district's current identification, ownership, occupancy, and supporting-document requirements before submitting the application [11].

Current statewide school-district exemptions include:

• A $140,000 general residence homestead exemption from school-district taxable value.
• An additional $60,000 school-district exemption for a qualifying person age 65 or older or disabled.

These amounts reduce taxable value for school-district taxation; they do not reduce the home's market value or automatically produce an equal reduction for every taxing unit. Counties, cities, and other taxing units may offer separate local exemptions.

Apply promptly after establishing the property as your principal residence and updating the required identification. The regular filing deadline is April 30. Texas permits certain late residence-homestead applications for up to two years after the tax delinquency date, but owners should not rely on late filing. A purchaser who qualifies after January 1 may receive the exemption for the applicable portion of that tax year when statutory conditions are satisfied, including rules concerning any exemption received by the prior owner. Confirm the application and effective date with the county appraisal district.

The residence-homestead appraisal limitation generally takes effect on January 1 of the tax year following the year the owner qualifies for the homestead exemption. Therefore, if an owner qualifies during 2026, the limitation generally takes effect January 1, 2027. The limitation generally restricts appraised value to the lesser of market value or the prior year's appraised value plus 10%, plus the market value of new improvements. It does not cap the market value, tax rate, total tax bill, or value attributable to new improvements. A tax bill can increase by more than 10% if tax rates, exemptions, taxing jurisdictions, or new improvements change [22].

Texas requires new residents to transfer their driver's license within 90 days of establishing residency, and vehicle registration must be completed within 30 days [12][13].

Action items:

• Obtain a Texas auto-insurance policy that satisfies Texas requirements. Texas requires minimum liability coverage of $30,000/$60,000/$25,000 [12][13].
• Determine whether the vehicle and registration county require an emissions or other applicable inspection, and complete it when required. For the principal Hill Country counties discussed in this guide — Bexar, Kendall, Comal, and Bandera — ordinary noncommercial vehicles are not currently subject to an annual emissions-inspection program. Texas has eliminated most annual noncommercial safety inspections, but emissions testing continues in designated counties, and different rules may apply to commercial or otherwise specially regulated vehicles. Verify the current rule for the vehicle type and registration county before registering.
• Within 30 days of moving to Texas, register the vehicle through the county tax assessor-collector. A new resident generally pays the $90 new-resident motor-vehicle tax when the vehicle was previously registered in the resident's name, plus registration, local, processing, and applicable title or inspection-replacement fees. Texas does not require an owner to surrender the out-of-state title merely to obtain registration; "registration purposes only" may be available. Electric vehicles, leased vehicles, recently purchased vehicles, military members, and vehicles not previously registered in the owner's name can be treated differently. Obtain the exact amount from the county tax office.
• Within 90 days of moving to Texas, apply for a Texas driver license through the Texas Department of Public Safety. Schedule a Texas DPS appointment and review the current document checklist. A new resident generally must present proof of identity, U.S. citizenship or lawful presence, Social Security number, and two documents showing the same Texas residential address. A person surrendering a valid, unexpired out-of-state license is excused from the 30-day residency-document aging requirement but still needs two residency documents. A vehicle owner must also provide evidence of Texas vehicle registration and insurance for each owned vehicle, or affirm that no vehicle is owned. The California license must be surrendered.

If you have not already completed school enrollment, finalize it now.

Action items:

• Begin enrollment through the district's online Skyward process and upload the required records as directed. Follow any subsequent campus instructions. For Comal ISD secondary students, the district states that the student will meet with a counselor after registration to develop a class schedule.
• Both Boerne ISD and Comal ISD use the Skyward Family Access portal for enrollment. Create your account online and submit enrollment forms before visiting the campus [8][9].
• Ask the receiving district to evaluate grade placement, course equivalencies, credits, graduation-plan requirements, prerequisites, and athletic eligibility. Provide course descriptions or syllabi when requested; do not assume that California course titles will map automatically to Texas requirements.

Have a Texas estate-planning attorney review wills, revocable trusts, beneficiary designations, guardianship provisions, durable financial powers of attorney, medical powers of attorney, directives to physicians, and disposition-of-remains instructions. For inherited property situations, see our probate guide. If you are handling a family member's estate while relocating, our Texas probate executor's guide walks through every stage of managing and selling an estate home. Review how the move affects community-property characterization and any California real estate or business interest retained after relocation. Do not retitle mortgaged real estate or transfer it to a trust without coordinating with the attorney, lender or servicer, title insurer, and homeowner's insurer.