Apr 9, 2025
Your state residency decides your need to pay state taxes; every state has different rules on residency. Though the criteria vary, the following are the key traits that usually characterize state residency:
- Physical Presence
According to most states, you must be physically present in the state for a particular length of time each year, usually more than half of the year.
- 183-Day Rule
The 183-day rule states that if you spend 183 days or more in a given year in a state, you are considered a resident there.
- Domicile
Your permanent home, this is the location you intend to return to after being away. Though you may live in another state, you are often considered a resident of the state where your domicile is situated.
- Usually, a domicile is based on factors such as where you live, work, vote, and have relatives.
- Intention Test
Several states utilize the “intention test” to decide if you mean to stay in the state. You might be considered a resident even if you are already living elsewhere if you intend to make the state your permanent home.
- States might also take into account your voter registration, driver’s license location, and mailing address.
- Part-Year Residency
If you move between two states, you may qualify to reside in both for a portion of the year. Under this scenario, you would typically pay taxes to both jurisdictions on the income you earned while living in either state.
- Exceptions
For financial reasons, residency criteria are less troublesome in states like Florida and Texas as they do not levy a state income tax. You might still be considered a resident for other purposes as well, including healthcare or inheritance laws.
This entry was posted
on Wednesday, April 9th, 2025 at 9:08 pm and is filed under Personal Information, Preparing a State Return, Tax Related Questions.
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