Texas State Tax for Expats: No Income Tax, But Other Considerations
Texas has no state income tax, making it a popular domicile for Americans moving abroad. Learn the residency rules, property tax considerations, and other obligations.
Residency Persistence
Texas has no state income tax, so there is no state tax liability for Texas residents living abroad. However, you may still have property tax obligations if you maintain real estate in Texas, and you should ensure your domicile is properly established to avoid challenges from other states.
Key Rules for Texas Expats
Texas has no state income tax. There is no personal income tax filing requirement for Texas residents.
Texas does not tax wage income, investment income, or retirement income at the state level.
Texas property tax is among the highest in the nation. If you maintain a home in Texas, you will owe property tax regardless of residency.
Texas has no state estate tax or inheritance tax.
Establishing Texas domicile before moving abroad can simplify tax obligations.
Steps to Terminate Texas Residency
Establish a Texas address and update your voter registration to Texas before moving abroad.
Obtain a Texas driver's license and register your vehicle in Texas.
Open a Texas bank account and update your mailing address with all financial institutions.
File federal taxes using your Texas address to establish domicile.
If you maintain Texas property, ensure property taxes are paid or the property is rented.
Document your intent to make Texas your permanent US domicile.
Common Texas Audit Traps
Assuming Texas residency eliminates all US state tax obligations — other states may challenge your domicile if you have significant ties elsewhere.
Failing to pay Texas property taxes on maintained real estate.
Not properly establishing Texas domicile before moving abroad, leaving domicile ambiguous.
Maintaining significant ties to a high-tax state (e.g., California) while claiming Texas domicile.
Special Considerations for Expats
Texas is one of the best states for domicile before moving abroad because there is no state income tax.
Texas property tax can be high, so factor this into the cost of maintaining Texas real estate.
If you have no Texas property and no Texas income, there are generally no state tax filing obligations.
Texas does not conform to federal tax rules in the same way as some states, but this is irrelevant because there is no income tax.
Frequently Asked Questions
Do I have to pay Texas state tax if I live abroad?
No. Texas has no state income tax, so there is no personal income tax liability for Texas residents living abroad. However, if you maintain real estate in Texas, you will still owe property tax.
Should I establish Texas domicile before moving abroad?
Yes, if possible. Texas is one of the best states for expat domicile because there is no state income tax, no estate tax, and no inheritance tax. Establishing Texas domicile before moving abroad can eliminate state tax obligations entirely.
Does Texas have property tax for expats?
Yes. Texas property tax applies to real estate regardless of the owner's residency status. If you maintain a home, land, or other real property in Texas, you will receive a property tax bill annually. Texas property taxes are among the highest in the US.
Need Help With Texas Tax Issues?
State residency termination is fact-specific. FileAbroad reviews your ties and recommends the right next step.