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Texas -- information for new residents
Local color | Personal income tax | Sales tax | Personal and real property taxes | Intangible personal property taxes | Driver's license | Motor vehicle registration | Auto insurance | Voter registration | More information
State
Income
tax rates
percent
Income brackets
$
Personal exemption
$
State sales tax in percent
Low
High
No.
Low
High
Single
Married Child
Texas No state income tax 6.25%
Local color: changing times of the workplace

Remember the Alamo! The Lone Star state is the only state that was a country before joining the Union. From beaches to mountains, Texans have a great deal from which to choose. Heavily influenced by its former Spanish rule, Texans enjoy some of the most interesting influences in music and culture in Tejanos.

In Dallas Starbucks and coffeehouses, workers are taking up residence in alternative office space. For a few well-documented years, technology and changing business attitudes have freed some employees from the traditional office and allowed them to work out of their homes. Now, some are seeking freedom from their homes as well, setting up shop in Dallas' caffeine emporiums. There they join traditional denizens such as retirees and students, becoming the new coffeehouse regulars.

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At one Dallas Starbucks recently, Ward shared the bar with Michael Sitarzewski and Julie DiBella, who run their Macintosh sales and support business almost exclusively from the tables of coffeehouses across the Dallas area. The qualities that make a coffeehouse good for office work include computer ports, proximity to clients and the attitude of the employees. But there is also -- as they would say at one favorite, La Madeleine -- a certain je ne sais quoi.

Oil is still the symbol of Texas, along with Longhorn cattle and, more recently, high-tech. Poised on the precipice of the 21st century, Texas embraces cattle and ranching as critical components of the states's economy; the state has also had phenomenal success in luring high-tech and space engineering corporations from the East and West coasts.

Space engineering is a natural offshoot of NASA's decision in the early 1960s to build the Lyndon B. Johnson Space Center in Houston. The high-tech and computer industries that cropped up around NASA received support from the state's flagship universities, and today these industries are big players in the state's economy. Texas is headquarters for numerous Fortune 500 companies, and it has emerged as a leader in computer manufacturing.

If you are an avid poultry, pigeon, rodent or rabbit lover moving to the city of San Antonio, you will want to note that there are very specific limitations on how many of your favorite you may love at one time. Click here to review San Antonio's animal codes.

 

 Important taxes and fees for new residents

New residents to the "Lone Star" state will want to be aware of the state tax and fee information listed below. For additional information contact the Texas Comptroller of Public Accounts at 1-800-252-5555 or by clicking here.

Personal income tax

  • Texas residents enjoy no personal state income tax.

Sales tax

  • Texas has a 6.25 percent sales tax, and local sales and use taxes can add up to 2 percent to the sales tax.

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Personal and real property taxes

  • Texas does not have a state property tax.
  • Local taxing units (counties, cities and school districts) assess and collect property taxes on all real and income-producing tangible personal property not exempt by state or federal law.
  • Total tax rates vary from location to location and may change from year to year.
  • The average aggregate tax rate often cited in publications about property taxes in Texas is $2.50 per $100 of property value.
  • Personal property (including automobiles, airplanes, boats and travel trailers) that does not produce income is mostly exempt from taxation.
  • The residence homestead exemption amount is $15,000. The exemption amount for persons 65 and older or disabled is $25,000 ($15,000 general exemption plus $10,000 over-65/disabled). Applicants need to file Form 50-114, Application for Residential Homestead Exemption. (Instructions for downloading forms.) Residents need to file this application between January 1 and no later than April 30.
  • If you have additional questions, you may contact the Property Tax Division at 1-800-252-9121, extension 59845.

Intangible personal property taxes

  • Texas does not tax intangible property such as stocks, bank accounts or certificates of deposit.
 Auto regulations

New residents may obtain additional vehicle registration and title information from the Texas Department of Transportation at (512) 424-2004 or by clicking here. Likewise, additional driver's licensing information may be obtained from the Texas Department of Public Safety at (512) 424-2600 or by clicking here.

Driver's license

  • To obtain a Texas driver's license, you will need to provide the following documents:
    • Proof of Texas registration
    • Insurance
    • Social security number
    • Out-of-state license
  • If you have a valid out-of-state driver's license, you will only be required to take a vision test.
  • If your out-of-state driver's license is invalid, you will be required to take the vision, written, and driving tests.
  • Fees: $24 for 6 years; $10 exam fee.

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Motor vehicle registration

In order to obtain a vehicle registration, you will need to:

  • Pass a vehicle safety inspection $23.50.
  • Conduct an inspection of the vehicle identification number at a state-approved Safety Inspection Station. Take the completed Vehicle Identification Certificate (Form VI-30-A) to the county tax office.
  • Carry basic liability insurance on your vehicle; take the forms with you.
  • Complete the application for the certificate of title.

Auto insurance

  • Texas' mandatory insurance law requires every driver to be covered by liability insurance.
  • The minimum insurance a driver must have is:
    • $20,000 bodily injury per person
    • $40,000 bodily injury per accident
    • $15,000 for property damage per accident
 Voter registration

According to Texas voter registration policy, residents:

  • Must register to vote 30 days before the election.
  • Can select party affiliation at the polls.
  • Can register to vote in person or obtain a mail-in application from:
    • County election office
    • Division of motor vehicles offices
    • Aid to families with dependent children (AFDC) offices
    • Medicaid offices and Food stamps offices
    • Women, infants and children (WIC) benefits offices
    • Agencies that provide services to people with disabilities

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The election dates are:

  • Presidential primary 03/14/00
  • Congressional and state primary 03/14/00
  • Runoff 2000
  • General election 11/07/00


Residents may obtain an online voter registration application at:

National Mail Voter Registration Form

You may also locate the local election office nearest you through the following Web site: Project Vote Smart
You will need to select Government & Politics/Voter Registration/Local Elections Office.

 

 More information available from:

Texas Government Web site

Texas Records and Information Locator

Texas Comptroller of Public Accounts Web site

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To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.

 

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