Texas has no state income tax. So what do you still have to file?

People who move to Dallas often ask me whether they still need to file at all. Yes. No state income tax does not mean no tax return.

You still file a federal return

The federal return goes to the IRS no matter which state you live in. For most of my Dallas clients that is the only income tax return they file.

If you own a business

Texas has no personal income tax, but most LLCs and corporations must file with the Texas Comptroller each year: a franchise tax report, or at least an information report if no tax is due. Whether yours does depends on how the business is set up. Ask me before you assume it does not apply.

If another state was involved

• You moved to or from Texas during the year.
• You live in Texas but earned income in a state that taxes it.
• You own rental property in another state.

In those cases you may need a return for the other state as well. Part-year and multi-state returns are common, and I prepare them regularly.