Texas Guide for Canadians

Quick Facts

State Income Tax	None
Sales Tax	6.25% state + local (varies by location)
Driver's License Grace Period	90 days for residents
Residency Requirement for Tax	Intent to remain indefinitely + domicile
Vehicle Registration Deadline	30 days for residents
REAL ID Deadline	May 7, 2025 for domestic flights

First 90 Days Checklist

Week 1-2: Essential Documents

• Gather required documents for driver's license
• Open US bank account
• Set up temporary mailing address

Week 3-4: Official Registration

• Apply for Texas driver's license (within 90 days)
• Register vehicle if brought from Canada (within 30 days)
• Register to vote

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish Texas ties and intent to remain
• Consider Texas vehicle insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Original valid Canadian passport
• Proof of Social Security Number (if applicable)
• Two proofs of Texas residential address

Testing Requirements:

• Written test may be required for Canadian citizens
• Road test typically waived for valid Canadian license holders
• Vision screening required

Texas Advantage:

• 90-day grace period (longest among major states)
• REAL ID available for air travel compliance
• Generally straightforward transfer process

Vehicle Registration

• Register within 30 days of establishing residency
• Safety inspection required annually
• Emissions testing required in some counties
• Texas insurance required for registration

Tax & Residency Considerations

Texas State Tax Benefits

• **No state income tax** – major advantage
• **No inheritance tax**
• **Property taxes** vary by county but can be high
• **Sales tax** 6.25% state rate plus local taxes

Establishing Texas Tax Residency

Texas residency is based on intent and domicile rather than day counting:

• Intent to make Texas your permanent home
• Physical presence in Texas
• Stronger ties to Texas than previous residence

Documentation to Establish Residency

• Texas driver's license and voter registration
• Bank accounts and utility bills in Texas
• Employment or business activities in Texas
• Professional licenses, club memberships

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Texas has no public health insurance for non-citizens
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Major medical centers in Houston, Dallas, Austin, San Antonio

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Border proximity allows some cross-border pharmacy access

Special Considerations for Snowbirds

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons
• Maintain Canadian insurance & banking relationships
• Texas intent-based residency more flexible than day-counting states

Property Considerations

• Homestead exemption available for primary residence
• Property taxes can be high but vary by county
• Impact on Canada's principal residence exemption
• Hurricane/tornado insurance considerations
• Water rights important in some areas

Climate & Lifestyle Adjustments

• Hot, humid summers throughout most of the state
• Hurricane season (June-November) along Gulf Coast
• Tornado season (spring) in northern areas
• Large distances between cities - car essential

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Track intent to establish residency vs. temporary stay
• Mexico border proximity offers additional travel options

Snowbird Advantage

Texas is more snowbird-friendly than many states due to intent-based rather than day-counting residency rules. However, still maintain clear Canadian ties if you intend to remain a Canadian tax resident.

Key Contacts & Resources