Smartasset and Yahoo Finance LLC can earn committee or income via links in the content below.
To be eligible for tax benefits in Texas, including no personal income tax, you must meet specific residence requirements. Locating yourself as a real resident entails more than just moving. You must clearly show your intention to leave the Lone Star you permanent at home. This includes obtaining a driver’s license there, registering to vote and set up your primary home in Texas. If you are considering moving to Texas, you may want to talk to a financial adviser to make a plan for your financial goals and tax returns in the long term.
Setting up residence in Texas can be a simple process. But knowing the necessary steps can help to make your transition smoother. Here are five steps to help you establish residence in the Lone Star State:
-
Secure a permanent address. You can get a permanent address in Texas by renting an apartment or buying a house. This address will serve as your official place of residence for all legal and administrative purposes.
-
Transfer your driver’s license. Visit an office of Texas Department of Public Safety (DPS) to transfer your driver’s license outside the state within 90 days after relocation. This step is important because it not only serves as a primary form of identification, but also your intention to live in Texas solidifies.
-
Register your vehicle. Register your vehicle at the Texas Department of Motor Vehicles (DMV) within 30 days of determining residence. This includes passing on a vehicle inspection in Texas, insurance that meets the state requirements, visiting your local County Tax assessor Collector Office and paying the necessary reimbursements.
-
Register to vote. Although it is not required, registering in Texas can be an important step in determining residence and participating in local and state elections. You can register online or personally with your local voter registration office.
-
Attend your address with financial institutions. Inform your bank, credit card companies and other financial institutions from your new Texas address. This helps you to ensure that all your financial files reflect your current residence and prevent possible problems with invoicing or correspondence.
Residence of the part year refers to the status of persons who live in more than one state during a single tax year. This situation often arises when someone goes from one state to another and influences his tax obligations. If you move to or from Texas, you can still have tax responsibilities in the other state involved.
