Texas
Every equity-comp topic that hits differently in Texas. Written for tech employees earning RSUs, ISOs, NSOs, ESPPs, or pre-IPO stock.
No state income tax; Austin is a top secondary hub after the 2020 migration wave.
Topics for Texas
- rsu taxRSU taxes: withholding, supplemental wages, and state nexus
Texas has no state income tax, but federal and trailing-state rules still apply to RSU vesting. Here's what actually changes.
Open - iso amtISO exercises and AMT
Texas does not run a separate state AMT. Federal AMT still applies on your ISO bargain element; we walk through the interaction.
Open - capital gainsCapital gains tax: long-term vs short-term, RSU sale edge cases
Texas has no state income tax, but Washington's 7% gains tax and federal NIIT still apply. Here's what Texas residents actually pay.
Open - qsbsQSBS: federal Section 1202 and state conformity
Whether Texas honors the federal QSBS gain exclusion on Section 1202 stock — and what it means for founders and early employees selling after five years.
Open - moving with-equityMoving to or from Texas with unvested equity: trailing nexus rules
How Texas sources RSU, ISO, and NSO income when vesting straddles your move. Covers workday-allocation, grant-to-vest rules, and what to tell your payroll team.
Open - rsu vestingRSU vesting schedules: cadence, withholding, and annual tax cycle
Texas has no state income tax on RSU vests, but federal withholding, NIIT exposure, and trailing-state rules still shape the vesting cycle. Here's the actual cadence.
Open - espp stateESPP taxation: ordinary income, qualifying dispositions, and payroll
Texas has no state income tax, so ESPP discount income is federal-only. Here's what that actually means for same-day and long-hold sales.
Open - nso stateNSO exercises and state tax
Texas taxes no ordinary wage income, so NSO exercise spread costs you only federal (up to 37%) plus Medicare. The "state discount" is real and worth planning around.
Open - 401k state-tax401(k) and retirement accounts: state deduction and Roth considerations
Pre-tax 401(k) contributions give no state-level deduction in Texas (there's no state income tax to reduce), which tilts the calculus toward Roth 401(k) more than in high-tax states.
Open - moving outLeaving Texas: how to cleanly break residency before a liquidity event
Texas already has no income tax, but the year you move out matters if your destination state does. What follows covers the audit factors and the records to keep.
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