US Tax Guide for Texas Residents Living in Germany

Texas has no state income tax, making it one of the most favorable states for Americans moving abroad. If you moved from Texas to Germany, you have no Texas state tax to worry about — but you still have federal filing obligations and German tax considerations.

Texas Residency Rules

Texas has no state income tax. Once you establish that you are no longer a Texas resident, there are no Texas state tax implications.

Germany Tax Implications

Germany taxes worldwide income for tax residents. German tax rates reach up to 45% plus solidarity surcharge and church tax. The US-Germany tax treaty applies. FTC is almost always more valuable than FEIE for Americans in Germany.

FEIE vs FTC for Texas Residents in Germany

Texas has no state income tax, so state conformity is not an issue. You only need to consider federal FEIE vs FTC.

FTC is almost always more valuable than FEIE for Texas residents in Germany due to high German tax rates.

Common Mistakes Texas Residents Make in Germany

1. Assuming no state tax means no filing obligations — You still must file federal returns.
2. Not reporting German bank accounts on FBAR — All foreign accounts are reportable.
3. Not understanding German tax residency — The domicile test determines residency.

When to Get Professional Help

You should consider professional help if you have foreign accounts exceeding $10,000, self-employment income, property ownership in Germany, or complex income situations.

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FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.

Scope statement reviewed 2026-08-30 · FileAbroad product/content owner