Austin Tax Guides

No. Texas does not levy a personal state income tax, which is one reason many founders and remote workers relocate to Austin. You still file and pay federal income tax to the IRS, and self-employed residents owe self-employment tax on net earnings. The absence of a state income tax does not remove other obligations, though. Texas funds much of its budget through property taxes and sales tax, so Austin homeowners often face higher property tax bills than residents of income-tax states. Business owners may also owe the Texas franchise tax depending on revenue. Our guides break down which of these apply to your situation.

Each spring the Travis Central Appraisal District mails a notice of appraised value. If you believe the value is too high, you can file a protest, usually by mid-May, either online, by mail, or in person. You then present evidence such as recent comparable sales, photos of needed repairs, or an independent appraisal at an informal review or a formal hearing before the Appraisal Review Board. A well-documented protest can meaningfully lower your taxable value and your annual bill. Our Travis County protest guide walks through deadlines, evidence gathering, and what to expect at each stage of the process.

QSBS stands for qualified small business stock. Under Section 1202 of the federal tax code, founders and early investors who hold qualifying C corporation stock for more than five years may exclude a large portion, often up to 100 percent, of the gain when they sell. Austin’s growing technology and startup community makes this provision especially relevant for local founders planning an eventual exit. Qualifying is detailed: the company must meet asset and active-business tests, and the stock must be acquired at original issuance. Planning early, ideally at incorporation, protects the exclusion. Our QSBS guide explains the requirements and common pitfalls.

Yes. The Texas Moving Image Industry Incentive Program, or TMIIIP, offers grants to qualifying film, television, commercial, and video game productions that spend money and hire Texas residents in the state. Austin is a major hub for the program given its active production community. Eligibility depends on meeting minimum in-state spending thresholds and a percentage of Texas-based cast and crew, and applications must be submitted before production begins. The grant is a reimbursement of a percentage of eligible Texas spending, not an upfront payment. Our film production guide covers the application timeline, qualifying expenses, and recordkeeping needed to claim the incentive.

Yes. If you earn income as a freelancer, independent contractor, or content creator in Austin, you generally owe federal self-employment tax, which covers Social Security and Medicare, in addition to regular income tax. This applies whether you receive a 1099 or not. Because no employer withholds taxes for you, the IRS expects quarterly estimated payments throughout the year, and missing them can trigger penalties. The upside is that legitimate business expenses, home office costs, equipment, and the deductible half of self-employment tax can reduce what you owe. Our freelancer and creator guides explain how to estimate payments and track deductions accurately.