Residency Requirements by State

Tax wise, you would be considered a resident if you spend more than half the year living in a certain state or have established your domicile there. You may also establish residency by owning a business or being gainfully employed in a state even if you do not live there all year.

The residency requirements vary for each state that levies its own income tax. If you live in a state that has state income tax, then you may be required to pay this tax in addition to federal income tax when you file your tax return.

In many states, taxpayers must provide documentation of which states they spent time in during the year and how long they were in those states. Evidence used to prove residency includes the following.

There are certain situations where a taxpayer might find themselves liable for income taxes in two different states. In these cases, the taxpayer is considered to have dual residency status in two states.

Situations where a taxpayer might have dual residency and dual taxation include the following.

The term “domicile” refers to your primary residence or “home base.” Wherever you establish your domicile, that state will be the controlling jurisdiction for tax purposes.

The process for establishing your domicile varies depending on your state. In Florida, for example, you must file a Declaration of Domicile with the clerk of circuit court in the county that your home is located in.

Not all states have such formalities. For instance, California has no formal process for establishing domicile. However, the state does require that you physically reside in the locality and demonstrate that you intend on remaining there permanently or indefinitely. This can mean registering to vote in your city, opening accounts at a local bank or enrolling your child in a nearby school.

With the rise of remote work over the past few years, many Americans are now living in one state but have a job in another state. This can create complications during tax season, as both the state you live in and the state you work in may try to tax your wages.

However, the state you live in and the state you work in may have a reciprocal agreement for tax purposes. This means that you can work in the neighboring state without paying taxes on your income to that state. Most of the time, you’ll just have to fill out an exemption form to take advantage of the agreement.

Taxpayers living and working in states that don’t have reciprocal agreements will have to file two tax returns. You’ll file a resident tax return for your home state listing all sources of income including what you earned out of state. You’ll also have to file a nonresident tax return for your work state, but this return should only list the income you made in that state.

Fortunately, this doesn’t usually result in paying double the taxes. Your home state will usually give you a tax credit on your resident tax form for the taxes you pay to your work state.

Many states that collect income taxes use the 183-day rule to decide who is considered a resident of their state. According to the rule, if you spend at least 183 days of a year in a state — even if you have established your domicile in another state — you are considered a resident of the state for tax purposes.

There are a few important factors to consider with this rule. The first is that any part of a day counts as a full day. That means, if you travel into the state just to meet a friend for lunch or go to a doctor’s appointment, your time there counts as a full day for residency purposes. Any day or time of day can count for this rule, too, not just time spent in the state during business hours or during the week.

If you frequently travel between states, it’s important to keep track of the number of days you spend in each state. You will automatically have to pay taxes to whichever state you establish your domicile in, but if you spend a lot of time in a second state, you may also end up paying taxes there, too.

You should also do some research into your states’ exceptions to the 183-day rule. Neighboring states may have reciprocal agreements regarding the 183-day rule, in addition to the agreements about living in one state and working in another. For example, residents of North Dakota or Michigan can spend more than 183 days in Minnesota without being charged taxes in both states.

Most states also grant exceptions to military personnel who are stationed in the state but have a permanent home in another state. Hospital treatment, not counting outpatient services, is usually not included in the 183-day count.

Each state has its own requirements to be considered a resident or part-year resident for tax purposes.

You can use the interactive map or table below to find residency requirement information for each state.