Texas No Personal Income Tax in 2025: What Immigrants Need to Know

(TEXAS) Texas remains one of the most tax‑friendly places in the United States 🇺🇸 for newcomers in 2025 because the state does not impose any personal state income tax on individuals, no matter your citizenship or visa status, and there is no Texas state income tax return for individuals to file. For many families planning a move as part of an immigration journey—an H‑1B job transfer, an F‑1 degree, a new green card, or a fresh start after naturalization—this one rule can change monthly budgets fast. But it can also create a common mistake: people hear “no income tax” and think tax doesn’t matter. In reality, federal tax filing still applies, and good tax records often matter in immigration cases.

According to analysis by VisaVerge.com, Texas’s lack of a state income tax is one reason many immigrants choose the state, but the real win comes when people pair that benefit with steady federal compliance and clean paperwork.

What “no Texas income tax” actually means in 2025

Texas does not tax income from wages and salaries, self‑employment, investment income (interest, dividends, capital gains), or retirement income (pensions, 401(k) distributions, IRAs, and Social Security).

Because of that:
– No Texas income tax is withheld from paychecks.
– No Texas state individual income tax return is filed—because the state does not have one.

This applies to 2024 income filed in 2025 and to 2025 income filed in 2026, as long as the law stays the same. As of 2025, the Texas Constitution still effectively blocks a personal income tax, and there are no current proposals or legal changes in effect to add one.

How Texas treats immigration status for tax purposes

For personal income tax, Texas does not split people into categories the way immigration law does. There’s no state‑level distinction by immigration status for individual income tax because there is no individual income tax system at all.

In practice, the same “no state income tax return” outcome applies if you are:
– A U.S. citizen
– A lawful permanent resident (green card holder)
– A temporary worker (such as H‑1B, L‑1, O‑1, TN)
– An international student or exchange visitor (F‑1, J‑1, M‑1)
– Another legally present noncitizen earning income in Texas

Texas also does not tax you based on days spent in the state, because there is no personal income tax framework to trigger day‑count residency rules.

Step‑by‑step process most immigrants in Texas will follow (with timing)

Step 1 (Day 1 to Day 30 in Texas): Set up your proof‑of‑life paperwork

Start building a file you can keep for years—even though there is no Texas income tax return, many processes need proof you truly live in Texas.

Collect right away:
– Lease or mortgage papers
– Utility bills or bank statements with a Texas address
– Texas driver’s license or state ID (if eligible)

These documents often help with school enrollment, in‑state tuition questions, and sometimes immigration filing evidence when you need to show continuous residence.

Step 2 (First paycheck onward): Check your withholding — federal only

When you start work, your employer should withhold federal income tax and, when applicable, Social Security and Medicare. You should not see a Texas income tax line.

If something looks off, ask payroll to confirm you are not being withheld for a Texas state income tax, because none exists.

Step 3 (Ongoing, monthly): Save work authorization and pay records

Immigration cases often turn on whether you stayed in status and worked legally. Keep copies (paper or scanned) of:
– Form I‑797 approval notices (common for H‑1B, L‑1, O‑1)
– I‑94 record
– EAD (Employment Authorization Document), if you have one
– Pay stubs and year‑end summaries

Also save your income forms:
– Form W‑2 from employers
– Form 1099 for contract work or investment income

Step 4 (January to early February): Gather tax forms as they arrive

Most people receive W‑2 and 1099 forms by January. Don’t file until you have everything. If you’re a student with a campus job, a scholar on a stipend, or a contractor doing side gigs, missing one form can cause a mismatch later.

Step 5 (February to April): File your federal return — this is the core step

Even though there is no Texas income tax return, many immigrants must file a federal return with the IRS.

Common federal filings include:
– Form 1040 for people treated as U.S. residents for federal tax purposes. You can find the official form package at the IRS page for Form 1040, U.S. Individual Income Tax Return.
– Form 1040‑NR for many nonresidents for tax purposes, including many F‑1 and J‑1 holders in their early years in the U.S. The IRS hosts it at Form 1040-NR, U.S. Nonresident Alien Income Tax Return.
– Form 8843 for many nonresident students and scholars, sometimes even when they had no income. The IRS provides it at Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition.

Important deadlines and relief:
– The typical federal deadline for most individuals is April 15, 2025, for 2024 income.
– Some universities advise that Form 8843 can be due around mid‑June when there is no income—follow your school guidance and personal facts.
– If you live in a part of Texas hit by severe storms and flooding beginning July 2, 2025, the IRS has granted automatic filing and payment relief until February 2, 2026 for affected taxpayers in designated counties. That relief can cover individual returns, quarterly estimated tax payments, payroll and excise returns, and certain business and exempt‑organization returns. Taxpayers should confirm details through the IRS disaster relief system on the official IRS Tax Relief in Disaster Situations page.

Step 6 (After you file): Keep your proof for both tax and immigration

Keep copies of filed returns and supporting documents for at least several years, and often longer if you plan to apply for immigration benefits.

USCIS and the Department of State may ask for copies of returns or IRS transcripts in different case types, and missing filings can create delays.

Key takeaway: file required federal returns, keep clean records, and don’t assume “no Texas income tax” means “no tax work.”

Federal income tax facts that matter while living in Texas

Texas doesn’t change federal rules. For 2025, the IRS has inflation‑adjusted brackets with rates from 10% to 37%.

A notable threshold mentioned for 2025:
– The 37% bracket begins at $626,350 for single filers and $751,600 for married filing jointly.

These figures matter for high earners on work visas, founders, and families with investment income.

Also remember: the right federal form depends on whether you are a “resident for tax purposes,” which is not the same as being a permanent resident. For example, a person on an F‑1 visa can be a nonresident for tax purposes at first and later become a resident for tax purposes even without changing immigration status.

If you run a business: the Texas franchise tax is separate from personal income tax

People often hear “Texas doesn’t tax income” and assume businesses don’t file either. That’s not true.

• Texas can apply a franchise tax to business entities such as LLCs, corporations, and certain partnerships.
• The franchise tax is a gross‑receipts‑type tax handled by the Texas Comptroller, and it’s separate from your personal wages.

Key update:
– For reports due on or after January 1, 2024, entities with annualized total revenue at or below $2.47 million are not required to file a No Tax Due Report, but they must still file a Public Information Report (PIR) or Ownership Information Report (OIR) unless they qualify as certain exempt entities.

Many small startups may owe no franchise tax under the threshold, but they still have filing duties.

The taxes you will feel in daily life: sales and property taxes

Texas makes up revenue in other ways, and immigrants often feel this in the first month.

Sales tax
– State rate: 6.25%
– Local additions: up to 2%
– Maximum combined rate: 8.25%
– Average combined rate: about 8.2% as of mid‑2024
– Many groceries and prescription medications are exempt
– Texas runs sales tax holidays in 2025, including:
– emergency supplies in April
– energy‑efficient products in May
– back‑to‑school clothing and supplies in August

Property tax
– Texas has no state property tax, but local property taxes are often high.
– The average effective property tax rate is around 1.47% of a home’s assessed value based on recent Tax Foundation data reported by AARP.
– Some broader analyses place the statewide effective average closer to 1.6–1.7%.
– If you buy a home, ask about:
– homestead exemption
– special rules for homeowners 65+ or with disabilities, including school tax freezes and possible deferrals

Common immigration moments where tax records matter

Even though Texas won’t ask you for a state income tax return, immigration processes often ask for federal proof that you followed the rules. Tax paperwork can matter when you:
– Apply for a green card through adjustment of status or consular processing
– File extensions or changes of status
– Apply for naturalization and need to show consistent compliance
– Move from Texas to a state that does have a personal income tax and must file part‑year returns with income allocation

For many families, the best habit is simple:
– File what you must file federally
– Keep copies
– Don’t assume “no Texas income tax” means “no tax work.”