It’s income tax free but they will have to pay Federal taxes and property taxes each year, which can be quite hefty amounts. Also states that have zero income tax usually have a higher tax on items in shops etcMight be a boring question but how do finances work out there ? Americans file their own tax returns for the year so will they have to do this based on their incomes from socials ? Is this why they like the idea of Texas - did someone say it was an income tax free state ?