--- title: "Taxes for Texas Individuals and Families: A Plain Guide" description: "A plain guide to taxes for Texas families: no state income tax, the federal return and its dates, standard or itemized deductions, estimated tax, homestead..." url: https://wallacecpa.multisites.ai/guides/texas-family-tax-guide publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- # Taxes for Texas individuals and families Texas has no state income tax, so most Texas families file only a federal income tax return. They still deal with property tax, sales tax and life events that change the federal return. This guide covers the return, the dates, the deduction choice, homestead exemptions and the records to keep. Pillar guideUpdated October 21, 20268 min read ## One income tax return Texas has no state income tax, so most families file a federal return only. ## Extension is not more time to pay An extension gives six more months to file. Tax owed is still due in April. ## Property tax is the big local bill Your homestead exemption and your appraisal value shape the bill. Both need your attention in spring. ## Life events change the return Marriage, a baby, a move, a job change or a death in the family can change what you file. This page is general information about taxes for Texas individuals and families. It is not advice for your situation. Figures and dates were checked against official pages on October 21, 2026. Many amounts change each year, so each one here names its year or points to the source. ## Does Texas have a state income tax? No. The Texas Comptroller states that “Texas has no state income tax.” A Texas resident with wages, interest or business income files a federal return, and no matching Texas return exists. That does not mean Texas families pay little tax. They pay federal income tax, Social Security and Medicare tax, sales tax on purchases, and property tax on land and buildings. Property tax is often the biggest local bill. If you earned income in another state, that state may still ask for a return. Check the other state’s rules, because the Texas rule does not follow you there. ## What do I file, and when? Most families file Form 1040 with the IRS by April 15. For the 2025 tax year, the IRS lists April 15, 2026 as the date for calendar year filers. If the date falls on a weekend or holiday, it moves to the next business day. An extension gives more time to file, not to pay. The IRS puts it this way: “An extension of time to file is not an extension of time to pay.” An extension runs to October 15. The IRS tells filers to “pay any tax you owe by the April filing date.” Late payment penalties and interest can begin after April even when the return is on extension. Our [tax due dates page](https://wallacecpa.multisites.ai/tax-due-dates) keeps the federal and Texas dates together. Wages, a 1099 form, interest, a sale of stock or a home sale all feed into the same Form 1040. ## Should I take the standard deduction or itemize? You take whichever is larger, but you cannot take both. The IRS explains that “You can’t take the standard deduction if you itemize your deductions.” The [standard deduction](https://wallacecpa.multisites.ai/glossary/standard-deduction) is a set amount that depends on your filing status, your age and other facts. It changes each year with inflation. To [itemize](https://wallacecpa.multisites.ai/glossary/itemized-deduction), you total certain costs, such as mortgage interest, state and local taxes up to the legal limit, charitable gifts and some medical costs. Then you compare the total with the standard deduction for that tax year. Question Standard deduction Itemized deductions What is it? A set amount for your filing status The total of qualifying costs you list Records needed Few Receipts, statements and acknowledgments Who often uses it Most filers Filers with large qualifying costs Can you use both? No No Property tax paid on a Texas home is one possible itemized deduction, though federal limits apply. Whether itemizing helps you depends on all your numbers. Do not guess. A preparer can run both ways and show you the result. ## Do I need to pay estimated tax? You may, if tax is not fully withheld from your pay. The IRS states that “Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.” This often applies to people with side income, freelance work, rental income, large investment gains or a spouse who is self-employed. Wage earners can sometimes avoid it by asking an employer to withhold more. The glossary explains [estimated tax payments](https://wallacecpa.multisites.ai/glossary/estimated-tax-payments) in plain terms. The IRS also offers a Tax Withholding Estimator on IRS.gov for a quick check. ## How does Texas property tax work for my home? Property tax in Texas is local. The Comptroller says: “There is no state property tax. Property tax in Texas is locally assessed and locally administered.” The county appraisal district sets your value. Cities, counties, school districts and other units set rates. Your bill combines them. A homestead exemption lowers the taxable value of your main home. Under Tax Code Section 11.13(b), the Comptroller says school districts must provide a $140,000 exemption on a residence homestead, as listed on its page in October 2026. Other units may offer more. The [homestead exemption](https://wallacecpa.multisites.ai/glossary/homestead-exemption) entry in the glossary explains the idea. You must apply. The Comptroller states that the general deadline for an exemption application is before May 1, and an owner must apply in most circumstances. Apply with the appraisal district in the county where the home sits. Do it in your first year in a home. You may also protest a value you think is wrong. Tarrant Appraisal District states that “Property owners have the right to protest actions concerning their property tax appraisals.” The dates and steps for Tarrant and Denton counties are in our [property tax protest guide](https://wallacecpa.multisites.ai/guides/property-tax-protest-tarrant-denton). ## Which life events change my taxes? Many life events change a return. Some change it by a lot. The table lists common ones and the questions to ask. It does not list amounts, because rules differ by year and by facts. Life event What may change Question to ask Marriage or divorce Filing status, withholding, who claims a child Do we need to update our W-4 forms? Birth or adoption Dependents and credits Do I have the Social Security number I need? Buying or selling a home Property tax, mortgage interest, gain or loss on a sale Which closing papers must I keep? Moving Residency, addresses on file, other state returns Did I tell the IRS and my employer? New job or side business Withholding, estimated tax, self-employment tax Will my withholding cover the year? Retirement Taxable income sources, required withdrawals Which income is taxable? Death of a spouse or parent Filing status, final return, estate matters Who files the final return? A CPA covers the tax and accounting side of these events. For wills, trusts, powers of attorney and other legal documents, you need an attorney. An investment adviser who is licensed handles investment choices. Bring the three to the same conversation when a large event happens, and each can do their part. ## What records should I keep? Keep records that support each item on your return until the period of limitations runs out. The IRS says to keep “your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out.” The usual period is three years from filing, but some cases are longer. Keep these for longer: records on your home, because they set your gain or loss when you sell; records on investments; and employment records for a business. Our guide on [how long to keep tax records](https://wallacecpa.multisites.ai/guides/how-long-to-keep-tax-records) gives the periods and the exceptions. A scanner or a phone camera is enough. Store the copy where a family member can find it. ## What if I get a letter from the IRS? Read it the day it arrives. Look for the notice number in the top right corner. The IRS says to “Review it carefully and keep it for your records.” Many notices ask for a reply by a date, and that date matters. Not every letter is a bill or a problem. Some ask a question or correct a small item. Our guide on [what to do when you get an IRS notice](https://wallacecpa.multisites.ai/guides/irs-notice-what-to-do) explains how to read one and when to ask a CPA to step in. ## What changes if I have side income or run a small business? Income from outside a paycheck brings new duties. A side business, freelance work or a rental can add self-employment tax, estimated payments and record keeping. The glossary explains these terms, but the main point is simple: no employer withholds tax from this income, so you plan for it. Track every dollar in and out from the first day. Keep business and personal money in separate accounts. A simple spreadsheet works at the start. If the side income grows, talk to a CPA about whether to form an entity and how to handle Texas business taxes. Texas business taxes, such as the franchise tax and sales tax, may follow. ## What should I bring to a tax appointment? Bring what you need to report income, claim deductions and confirm who is in your household. A short list covers most families. 1. Photo identification, plus Social Security numbers for everyone on the return. 2. Every W-2 and 1099 form, and any statement of interest, dividends or sales of stock. 3. Last year’s return, so the preparer can compare. 4. Mortgage interest statements, property tax bills and records of charitable gifts, if you may itemize. 5. Records of childcare costs, education costs and health coverage. 6. Any IRS or state letter you received during the year. 7. Bank details if you want a refund by direct deposit. If a form is missing, say so. A preparer can often request a copy or work from a pay stub for an estimate, then update the return when the form arrives. ## What about sales tax on what I buy? Texas charges sales tax at the register. The Comptroller says the state rate is 6.25 percent, and local jurisdictions can add up to 2 percent, for a maximum combined rate of 8.25 percent. The rate you pay depends on the location of the sale. The Comptroller’s Sales Tax Rate Locator shows the rate for an address. Federal rules may let an itemizer deduct state and local sales tax, with limits. Because Texas has no state income tax, that choice may matter to Texas itemizers. Ask a preparer to test it with your numbers. ## What mistakes do families make most often? Four mistakes appear again and again. The first is missing the homestead exemption in the first year in a home, which can mean a higher bill until it is filed. The second is treating an extension as more time to pay. The third is forgetting estimated tax when income comes from outside a paycheck. The fourth is throwing away records too soon, such as the closing papers for a home. Each is simple to avoid with a calendar and a folder. Set reminders for April and May, keep one tax folder per year, and update your withholding after any big change at home or at work. A short review with a CPA each winter can catch what you missed. ## Next step To review your own return or plan for a life event, read about [individual tax and financial planning](https://wallacecpa.multisites.ai/services/individual-tax-and-planning), call Wallace CPA, PLLC at (877) 682-1171, or use the [contact form](https://wallacecpa.multisites.ai/contact). This page is general information. Talk to a CPA about your own situation before you file, pay or make a large decision. ## Frequently asked questions ### Do I file a Texas state income tax return? No. The Texas Comptroller states that Texas has no state income tax. You still file a federal return if you meet the IRS filing rules, and you may owe tax to other states if you earned income there. ### Should I take the standard deduction or itemize? Most filers take the standard deduction. You cannot take both. Compare your itemized total to the standard deduction for your filing status and tax year, then take the larger one. ### Do I need to pay estimated tax if I have side income? You may. The IRS says individuals generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when the return is filed. Wages with enough withholding may avoid it. ### How do I apply for the Texas homestead exemption? File an application with the appraisal district in the county where the home sits. The Comptroller says the general deadline is before May 1. Your local district can tell you which forms it needs. ### How long should I keep tax records? Generally until the period of limitations for that return runs out, which is often three years after filing. Some records need longer. Keep records on a home or investment until you sell it, and for years after. ## Terms on this page - [Estimated tax payments](https://wallacecpa.multisites.ai/glossary/estimated-tax-payments) - [Property tax protest](https://wallacecpa.multisites.ai/glossary/property-tax-protest) - [Homestead exemption](https://wallacecpa.multisites.ai/glossary/homestead-exemption) - [Self-employment tax](https://wallacecpa.multisites.ai/glossary/self-employment-tax) - [Appraisal district](https://wallacecpa.multisites.ai/glossary/appraisal-district) - [Itemized deduction](https://wallacecpa.multisites.ai/glossary/itemized-deduction) - [Standard deduction](https://wallacecpa.multisites.ai/glossary/standard-deduction) - [S corporation](https://wallacecpa.multisites.ai/glossary/s-corporation) ## Sources 1. [Texas Comptroller, Texas is open for small business](https://comptroller.texas.gov/economy/fiscal-notes/industry/2025/small-biz-info/) 2. [IRS, When to file](https://www.irs.gov/filing/individuals/when-to-file) 3. [IRS, Get an extension to file your tax return](https://www.irs.gov/filing/get-an-extension-to-file-your-tax-return) 4. [IRS, Topic no. 551, Standard deduction](https://www.irs.gov/taxtopics/tc551) 5. [IRS, Estimated taxes](https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes) 6. [Texas Comptroller, Property Tax Exemptions](https://comptroller.texas.gov/taxes/property-tax/exemptions/) 7. [Tarrant Appraisal District, Property Tax Protest and Appeal Procedures](https://www.tad.org/tadqr01) 8. [IRS, How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records) 9. [IRS, Understanding your IRS notice or letter](https://www.irs.gov/individuals/understanding-your-irs-notice-or-letter) 10. [Texas Comptroller, Sales and Use Tax](https://comptroller.texas.gov/taxes/sales/) Written by Wallace CPA and checked against the sources above on October 21, 2026. Tax rules and dates change, so check the linked page before you act. General information, not advice for your situation. ## Keep reading - [How long to keep tax records, and which onesThe IRS says to keep records that support your tax return until the period of limitations runs out. For most returns that is 3 years.](https://wallacecpa.multisites.ai/guides/how-long-to-keep-tax-records) - [Got an IRS notice? How to read it and what to do firstRead the whole notice, find its CP or LTR number, and note the reply date. A CP2000 is a proposal to change your return, not a bill.](https://wallacecpa.multisites.ai/guides/irs-notice-what-to-do) - [How to protest your property tax value in Tarrant and Denton countiesIn Tarrant and Denton counties, you protest your property value with your county appraisal district.](https://wallacecpa.multisites.ai/guides/property-tax-protest-tarrant-denton) - [Texas business taxes, explained for small business ownersTexas has no state income tax, but a business can still owe several others. The main ones are the franchise tax, sales and use tax, property tax on business...](https://wallacecpa.multisites.ai/guides/texas-business-taxes) - [Southlake, Keller, and Colleyville Homeowners: Tarrant Appraisal District Dates to KnowFor tax year 2026, the Tarrant Appraisal District protest deadline was May 15, 2026, or 30 days after your Notice of Appraised Value was delivered.](https://wallacecpa.multisites.ai/blog/tarrant-appraisal-district-dates-southlake) - [IRS payment plans and offers in compromise: what each one isAn IRS payment plan lets you pay a tax bill over time. An offer in compromise asks the IRS to accept less than the full amount. The IRS decides each case.](https://wallacecpa.multisites.ai/guides/irs-payment-plans-and-offers-in-compromise) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092