In Texas you do not pay taxes on your income. Property taxes are assessed by the tax appraisal district in April of every year. If the amount is higher than you believe you should be paying, you have until May 30 to protest your taxes. Property taxes in Texas support the schools and roads. Depending on the school district you select to live, you can pay anywhere from 1.85% to 3.19% based on the County tax assessor's most recent appraisal amount. Taxes are paid in arrears so if you purchase a preowned home, you will pay taxes based on what tax appraised value the home was assessed in 2011. If you select a brand new home, your taxes are lower as you will pay taxes based on the value of the land and an aproximate value of the home. (Typically the amount you paid for the home times the tax percentage that corresponds for that particular school district.) After you live in the home on January 1 of the tax year, you qualify for the Homestead tax exemption which is typically reduced by $15,000 of the tax appraised value. Tax assessors determine the tax appraised value of the property in April and you have until the end of May to protest the amount if you believe your home was appraised at a higher amount than you believe you should be charged. So to answer your question, income is not taxed in Texas. Please let me know if I can be of any further assistance.
Lucy A. Puniwai