Tax Considerations When Moving to a New State
Moving to a new state triggers a series of tax questions. From residency rules to filing in multiple states, here's what to know before you pack.
Tax Considerations When Moving States
Establishing New State Residency
Most states use a 183-day rule — spend more than 183 days in a state and you're a resident for tax purposes.
To establish residency, also:
- Register to vote in new state
- Get a new driver's license
- Register your vehicle
- Update your address everywhere (bank, IRS, USPS)
Part-Year Resident Returns
In the year you move, you typically file part-year resident returns in both states.
High-Tax State Escape Planning
Moving from Illinois (4.95%) to a no-income-tax state can be significant, but your former state may audit the move, especially if you had high income. Keep good records of your move date and residency.
Domicile vs. Residency
- Domicile: Your permanent home; usually only one at a time
- Residency: Where you spend significant time; can have multiple
Remote Workers
If you work remotely for a company in your old state, some states claim the right to tax that income ("convenience of employer" rule). States like New York are aggressive about this.
What States Tax
- Income earned while a resident
- Some states tax non-residents on income sourced in their state
Moving or recently moved? Let our team sort out your multi-state filing obligations.