Houston is an inexpensive city to live in when it comes to taxes, as Texans fight to keep government control and taxes low. Texas is a Republican state, which means the ruling political party despises government taxes and Texans enjoy living in one of the states that has no state income tax. The State’s income comes primarily from sales tax and lottery income. Residents of Houston do have to pay federal income tax based upon their total annual earnings.
To be able to pay the federal income tax, the government will either assign you a Social Security Number, or if you don’t qualify for a Social Security Number, you will be assigned an Individual Taxpayer Identification Number.
In addition to federal income taxes, you will also be responsible for the local sales tax, property tax, if you own property, and if you own a car, the car registration tax.
For the income tax, you have to fill out a form and submit it to the federal government. For all other taxes, the State of Texas will either send you a bill or add it to a cost automatically.
In the following sections, we will discuss these taxes, how to obtain tax help and the social security number in more detail.