Before you start

An SSN or ITIN
Form W-4 with your employer for federal withholding — there is no Texas equivalent
Records of foreign income and foreign financial accounts
The appraisal notice for any property you own, which arrives in spring

Step-by-step

1
Complete the federal W-4 on day one — and note there is no state form
Texas has no personal income tax and therefore no state withholding certificate. Your payslip will show federal withholding, Social Security and Medicare, and nothing else. This is the visible difference from Iowa, Oklahoma, California or Alabama.
Via employerWho: YouFirst week of employment
2
Determine your US tax residency
The substantial presence test counts weighted days across three years to decide whether the US taxes your worldwide income or only US-source income. Your visa category does not decide this.
OnlineWho: You
3
Check for an applicable tax treaty
The US has treaties with around 70 countries that can reduce or exempt tax on particular income. With no state income tax in Texas the analysis stops at the federal level, which makes this simpler here than almost anywhere else in this app.
OnlineWho: You
4
If you buy, file the homestead exemption with the Collin Central Appraisal District
The Texas residence homestead exemption removes $140,000 of taxable value for school district purposes, with a further $60,000 for owners aged 65 or over or with a disability, and it caps how fast the appraised value used for taxation can rise. It is applied for through the appraisal district — it does not arrive with the deed — and both amounts were increased recently, so verify the current figures rather than relying on an older article.
OnlineWho: You
5
Read the appraisal notice and know you can protest it
Appraisal notices go out in the spring and the deadline to protest is fixed and short. Protesting is a normal, widely used process in Texas rather than an escalation, and it is free to file with the appraisal district. In a no-income-tax state the appraised value is the number that decides your tax bill, and Collin County values have risen sharply.
OnlineWho: YouSpring, by the protest deadline
6
Identify all four taxing entities on the parcel
A Plano property is taxed by Collin County, the City of Plano, Collin College and one of three school districts — and the school district is the largest line by a wide margin. Look the parcel up on the Collin Central Appraisal District's site rather than estimating from a metro average, and check for any municipal utility or public improvement district levy in the newer estates on the city's edges.
OnlineWho: You
7
Budget the sales tax you will actually pay
Texas charges 6.25% state sales tax and local jurisdictions add up to 2% on top, so Plano sits at the 8.25% ceiling. Groceries and prescription medicine are exempt, prepared food is not.
OnlineWho: You
8
File your federal return by 15 April
The tax year is the calendar year. With no state return to file, Texas filing is a single federal process — genuinely simpler than most of the cities in this app.
OnlineWho: YouBy 15 April annually
9
File an FBAR if foreign accounts exceed $10,000
Aggregate foreign account balances over $10,000 at any point in the year trigger a FinCEN filing, separate from your tax return and with its own penalties.
OnlineWho: You

Documents you’ll need

Form W-2 from each employer, issued by 31 January
Form 1099s for freelance, interest and investment income
Form W-4 filed with your employer
Passport and travel history for the substantial presence day count
Appraisal district notice and homestead exemption application, if you own property
Foreign account statements for FBAR reporting

Things most newcomers don’t know

The absence of an income tax is constitutional, not just legislative.

Texas voters approved a constitutional amendment in November 2019 prohibiting a personal income tax, which means reversing it requires another statewide referendum rather than a legislative majority. That is a stronger guarantee than 'the legislature has not done it', and it is a genuine factor in long-term planning.

Source: Texas Comptroller

The school district homestead exemption is $140,000, with $60,000 more at 65.

Texas has raised this figure more than once in recent years. On a Plano house it removes a very large share of the school district's line, which is normally the biggest one. Anyone using a two-year-old calculator is overstating their liability — and anyone who never files the exemption is paying the full amount for no reason. Both figures are on the Comptroller's exemptions page.

Source: Texas Comptroller — property tax exemptions

A low city rate is not a low tax bill when values are the highest in the state.

The City of Plano's own rate is among the lower municipal rates in the metroplex, and newcomers read that as cheap. The bill is rate times appraised value, and Collin County values sit near the top in Texas — with four taxing entities on the parcel and the school district the largest of them. Model the parcel, not the rate.

Source: Collin Central Appraisal District

Protesting your appraisal is normal here, not confrontational.

Texas appraisal districts revalue annually and the protest process is designed to be used by ordinary homeowners. The deadline is short and fixed, and people who ignore the notice are simply accepting the district's number. In a state where property tax is the whole burden, this is the single highest-value hour of admin in the year.

Source: Texas Comptroller — property tax

Common mistakes to avoid

Reading 'no state income tax' as 'low tax' without pricing the Collin County property bill.
Buying a home and never filing the residence homestead exemption.
Using an out-of-date homestead exemption figure — it is currently $140,000.
Ignoring the spring appraisal notice and missing the protest deadline.
Estimating the bill from the city rate alone when four entities tax the parcel.
Missing the FBAR because a home-country account did not feel 'foreign'.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.