Before you start

An SSN or ITIN
Form W-4 with your employer for federal withholding — there is no Texas equivalent
Records of foreign income and foreign financial accounts, including any held in Mexico
The appraisal notice for any property you own, which arrives in spring

Step-by-step

1
Complete the federal W-4 on day one — and note there is no state form
Texas has no personal income tax and therefore no state withholding certificate. Your payslip will show federal withholding, Social Security and Medicare, and nothing else. This is the visible difference from Nebraska, Ohio or California.
Via employerWho: YouFirst week of employment
2
Determine your US tax residency
The substantial presence test counts weighted days across three years to decide whether the US taxes your worldwide income or only US-source income. Your visa category does not decide this, and on a border where people move back and forth constantly the day count is genuinely worth keeping.
OnlineWho: You
3
Check the US-Mexico tax treaty if any of your income is Mexican-sourced
The United States and Mexico have a comprehensive income tax treaty. Income from a Mexican employer, Mexican rental property or a Mexican pension is not automatically outside the US net, and the treaty determines which country taxes what. With no Texas income tax the whole analysis stops at the federal level, which makes this simpler here than in California — but it does not make it optional.
OnlineWho: You
4
File an FBAR if foreign accounts exceed $10,000
Aggregate balances in accounts outside the United States over $10,000 at any point in the year trigger a FinCEN filing, separate from your tax return and with its own penalties. On this border a Mexican account inherited from family or holding a property's rent is entirely ordinary and counts in full.
OnlineWho: You
5
Read the appraisal notice and know you can protest it
Appraisal notices go out in the spring and the deadline to protest is fixed and short. Protesting is a normal, widely used process in Texas rather than an escalation, and it is free to file with the El Paso Central Appraisal District. In a no-income-tax state the appraised value is the number that decides your tax bill.
OnlineWho: YouSpring, by the protest deadline
6
If you buy, file the homestead exemption immediately
Texas's residence homestead exemption reduces the taxable value of an owner-occupied home for school district purposes and caps how fast the appraised value used for taxation can rise. It is applied for through the appraisal district — it does not arrive with the deed — and the exemption amount has been increased more than once in recent years. Check the current figure rather than an older article.
OnlineWho: You
7
Budget the sales tax you will actually pay
Texas charges 6.25% state sales tax and local jurisdictions add up to 2%, so El Paso sits at the 8.25% ceiling. Groceries and prescription medicine are exempt, prepared food is not. Goods bought in Juárez and brought back are subject to a separate federal personal exemption rather than to Texas sales tax.
OnlineWho: You
8
File your federal return by 15 April
The tax year is the calendar year. With no state return to file, Texas filing is a single federal process — genuinely simpler than most of the cities in this app, unless the border adds a treaty position or a foreign account.
OnlineWho: YouBy 15 April annually

Documents you’ll need

Form W-2 from each employer, issued by 31 January
Form 1099s for freelance, interest and investment income
Form W-4 filed with your employer
Passport and travel history for the substantial presence day count
Appraisal district notice, if you own property
Foreign account statements, including Mexican ones, for FBAR reporting

Things most newcomers don’t know

The absence of an income tax is constitutional, not just legislative.

Texas voters approved a constitutional amendment in November 2019 prohibiting a personal income tax, which means reversing it requires another statewide referendum rather than a legislative majority. That is a stronger guarantee than 'the legislature has not done it', and it is a genuine factor in long-term planning.

Source: Texas Constitution / Texas Comptroller

El Paso's property tax bill has more layers than most Texas cities'.

Beyond city, county and school district, an El Paso parcel typically also funds a hospital district — which pays for the county's public hospital and its financial assistance programme — and a community college district, plus emergency services districts. That is why combined rates here run above the Texas urban norm even though property values are low. Read the parcel's own bill rather than a statewide average; the City of El Paso's consolidated tax office collects for dozens of entities and itemises every one.

Source: El Paso Central Appraisal District / City of El Paso tax office

Protesting your appraisal is normal here, not confrontational.

Texas appraisal districts revalue annually and the protest process is designed to be used by ordinary homeowners. The deadline is short and fixed, and people who ignore the notice are simply accepting the district's number. In a state where property tax is the whole burden, this is the single highest-value hour of admin in the year.

Source: Texas Comptroller — property tax

On this border the FBAR is a mainstream obligation, not an exotic one.

A savings account in Juárez, an inherited account in Chihuahua, or a Mexican account holding a family property's rent all count toward the $10,000 aggregate threshold. Enormous numbers of El Paso households meet it without thinking of themselves as having offshore money. The filing is straightforward; the penalties for missing it are not.

Source: IRS — official federal tax authority

Common mistakes to avoid

Reading 'no state income tax' as 'low tax' without pricing an El Paso property bill.
Assuming a Bexar or Travis County property tax rate applies here. More districts overlap in El Paso.
Buying a home and never filing the residence homestead exemption.
Ignoring the spring appraisal notice and missing the protest deadline.
Missing the FBAR because a Mexican family account never felt 'foreign'.
Believing a filing extension also extends the payment deadline.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.