Take Advantage of No State Income Tax – Texas does not impose state income tax, which means you only need to focus on federal tax strategies.
Maximize Property Tax Exemptions – Homeowners can apply for the Homestead Exemption, reducing taxable home value. Additional exemptions exist for seniors, veterans, and disabled individuals.
Utilize Business Tax Incentives – Small businesses can benefit from Texas franchise tax exemptions if revenue falls below the no-tax-due threshold ($2.47 million for 2024). Consider structuring your business as an LLC or S-Corp for tax efficiency.
Deduct State and Local Taxes (SALT) – While capped at $10,000 federally, property and sales tax deductions can still provide savings.
Contribute to Tax-Advantaged Accounts – Utilize 401(k)s, IRAs, HSAs, and 529 college savings plans to lower taxable income.
Invest in Real Estate Strategically – Rental properties can offer depreciation benefits and expense deductions.
Leverage Energy Tax Credits – Installing solar panels or making energy-efficient home improvements can qualify for federal tax credits.
Consulting a tax professional can help tailor strategies to your situation and maximize savings.