Categories: Income

Texas Income Tax: A Guide to Forex Trading in the Lone Star State

Texas has one of the most favorable income tax systems in the United States. The state only levies a flat rate of income tax and there is no local or municipal income tax in Texas. For those who are considered Texas residents, the income tax rate is 0.0625% on all taxable income, regardless of income level. One benefit of its low income tax rate is that Texans can benefit from tax deductions, such as the mortgage interest deduction, that can make filing taxes much simpler and help to reduce the amount of taxable income. Furthermore, forex traders in Texas can also benefit from lower tax rates by using the eligible forex gains and loss rules as specified by the IRS. This allows them to offset any forex gains nontaxable against their taxable income.

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