How Do You Determine Your Residency? State-By-State Rules (2024)

What Determines Your Residency?

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 an income tax, you may be required to pay this tax in addition to federal income tax. However, if you earned the income in a different state, you could owe tax to that state.

That said, you will most likely not be forced to pay income taxes to both states. This is because most states
maintain reciprocal agreements with neighboring states to ensure taxpayers’ earnings are only taxed once.

To facilitate the determination of your tax liability, you typically must provide documentation of which states you spent time in during a tax year and how long you were there. Common examples of proof of residency are as follows:

Residency Evidence

Location of employment
Location of business relationships and transactions
Serving on the board of directors for a business or charity
Voter registration
Driver’s license or fishing/hunting permits
Location of the school a family’s child attends
Memberships in country clubs or social organizations

Dual Residency

As noted above, there are situations when a taxpayer might find himself or herself navigating around the
income tax codes of two different states. In these situations, the taxpayer is considered to have dual residency status in those states.

Circ*mstances that can result in dual residency are as follows:

Dual Residency Scenarios

Having a second home in another state
Temporarily relocating to another state for a job assignment
Living in one state but having business activities in another state
Having cut ties to a state but failing to establish residency or domicile in another state

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How Do You Establish Your Domicile?

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.

Can You Live and Work in Different States?

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 are likely to maintain a reciprocal agreement for tax purposes. This means you will only pay taxes to one of the states. Most of the time, you just need to fill out an exemption form to take advantage of the agreement.

Debra Smith, a former tax preparer at H&R Block, dealt with clients who lived and worked in different states frequently when she lived in a city near the border of two states. “Even if people have to fill out an income tax return and then calculate the tax they might owe, in every case I’ve seen, the person receives a credit for the income tax they paid for income earned in another state,” Smith told Annuity.org.

Arizona: If you live in California, Indiana, Oregon or Virginia, you are exempt from paying income tax on wages earned in Arizona.
District of Columbia: If you don’t live in D.C. proper, you exempt from paying income tax for the district.
Illinois: Iowa, Kentucky, Michigan and Wisconsin residents are exempt.
Indiana: Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin residents are exempt.
Iowa: Illinois residents are exempt.
Kentucky: Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia and Wisconsin residents are exempt.
Maryland: D.C., Pennsylvania, Virginia and West Virginia residents are exempt.
Michigan: Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin residents are exempt.
Minnesota: Michigan and North Dakota residents are exempt.
Montana: North Dakota residents are exempt.
New Jersey: Pennsylvania residents are exempt.
North Dakota: Minnesota and Montana residents are exempt.
Ohio: Indiana, Kentucky, Michigan, Pennsylvania and West Virginia residents are exempt.
Pennsylvania: Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia residents are exempt.
Virginia: D.C., Kentucky, Maryland, Pennsylvania and West Virginia residents are exempt.
West Virginia: Kentucky, Maryland, Ohio, Pennsylvania and Virginia are exempt.
Wisconsin: Illinois, Indiana, Kentucky and Michigan are exempt.

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.

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What Is the 183-Day Rule?

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.

Tax Residency Rules by State

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

State Residency Rules by State

State	Resident	Part-Year Resident	State Tax Website
Alabama	Person who is domiciled in Alabama	Person who moved to Alabama during that tax year	View Website
Alaska	N/A	N/A	N/A
Arizona	Person who is domiciled in Arizona OR person who spends more than nine months of the tax year in Arizona.	Person who moved to Arizona or out of Arizona during the tax year	View Website
Arkansas	Person who is domiciled in Arkansas OR person who spends more than six months of the tax year in Arkansas	Person who moved to Arkansas or out of Arkansas during the previous calendar year	View Website
California	Person who is domiciled in California OR present in California for reasons other than a temporary or transitory purpose	Person who lived in California for part of the year and outside of California for part of the year	View Website
Colorado	Person who is domiciled in Colorado OR maintains a permanent place of abode and spends more than six months of the tax year in Colorado	Person who is domiciled in Colorado for only part of the year	View Website
Connecticut	Person who is domiciled in Connecticut for the entire tax year	Person who changed their legal residence to or from Connecticut during the tax year	View Website
Delaware	Person who is domiciled in Delaware or spends more than 183 days of the tax year in Delaware	Person who maintained residency in Delaware for only part of the tax year	View Website
District of Columbia	Person who is domiciled in D.C. or lives in D.C. for 183 days or more	Person who moves into or out of D.C. during the year	View Website
Florida	N/A	N/A	N/A
Georgia	Person who is domiciled in Georgia for the full tax year.	Person who maintains residency in Georgia for only a portion of the tax year	View Website
Hawaii	Person who is domiciled in Hawaii OR is present in Hawaii for more than 200 days of the tax year	Person who is in Hawaii for less than 200 days of the tax year but is in Hawaii for reasons other than temporary or transitory purposes	View Website
Idaho	Person who is domiciled in Idaho for the entire tax year OR spends more than 270 days of the year in Idaho	Person who changes their domicile to or from Idaho during the tax year or lives in Idaho for more than one day during the tax year.	View Website
Illinois	Person who is domiciled in Illinois for the entire tax year	Person who established residency in Illinois during the year OR was an Illinois resident but established residency in another state during the year	View Website
Indiana	Person who maintains legal residence in Indiana for the full tax year	Person who establishes Indiana residency during the year	View Website
Iowa	Person who is domiciled in Iowa or maintains a permanent place of abode in Iowa	Person who has not been domiciled in Iowa for the full tax year	View Website
Kansas	Person who is domiciled in Kansas	Person who was a Kansas resident for less than 12 months during the tax year	View Website
Kentucky	Person who is domiciled in Kentucky OR person who lives in Kentucky for more than 183 days during the tax year	Person who moved into or out of Kentucky during the tax year	View Website
Louisiana	Person who is domiciled or has a permanent residence in Louisiana	Person who is a Louisiana resident for only a portion of the year	View Website
Maine	Person who is domiciled in Maine OR has a permanent residence and spends more than 183 days of the tax year in Maine	Person who established or relinquished Maine residency during the tax year	View Website
Maryland	Person who is domiciled in Maryland OR maintains a place of abode for more than six months of the tax year in Maryland and is present for 183 days or more	Person who established or relinquished Maryland residency during the tax year	View Website
Massachusetts	Person who is domiciled in Massachusetts OR maintains a permanent place of abode in Massachusetts and spends more than 183 days of the tax year in the state	Person who moves to or moves out of Massachusetts during the tax year	View Website
Michigan	Person who is domiciled in Michigan OR lives in Michigan for at least 183 days of the tax year	Person who moves to or moves out of Michigan during the tax year	View Website
Minnesota	Person who is domiciled in Minnesota OR spends at least 183 days in Minnesota during the year.	Person who moves to or from Minnesota during the tax year	View Website
Mississippi	Person who maintains a home in Mississippi or exercises the rights of citizenship in Mississippi	Person who moves into or out of Mississippi during the tax year	View Website
Missouri	Person who is domiciled in Missouri or maintains a permanent place of residence in Missouri and spends more than 183 days in the state	A person who is domiciled elsewhere prior to moving to Missouri or established domicile elsewhere after moving from Missouri	View Website
Montana	Person who is domiciled or maintains a permanent place of abode in Montana	Person who established residency in another state after leaving Montana during the tax year or established residency in Montana after leaving another state during the tax year	View Website
Nebraska	Person who is domiciled in Nebraska or maintains a permanent place of abode in Nebraska and spends at least 183 days in the state	Person who changes domicile during the year either moving to or out of Nebraska	View Website
Nevada	N/A	N/A	N/A
New Hampshire	Person who maintains a home, spends a greater percentage of time in New Hampshire than elsewhere, has a New Hampshire driver’s license or is registered to vote in New Hampshire	Person who has permanently established residency in New Hampshire during the year or who has permanently abandoned residency in New Hampshire during the year	View Website
New Jersey	Person who establishes domicile in New Jersey	Person who moves into or out of New Jersey for part of the year	View Website
New Mexico	Person who is domiciled in New Mexico for the entire year or is physically present in New Mexico for 185 days or more during the tax year	Person who is a New Mexico resident for part of the year, is not physically present in the state for more than 185 days, and is no longer domiciled in New Mexico on Dec 31	View Website
New York	Person who is domiciled in New York or maintains a permanent place of abode in New York and spends 184 days or more in the state	Person who meets the definition of resident for only part of the year	View Website
North Carolina	Person who is domiciled in North Carolina for the entire tax year	Person who moves their domicile into or out of North Carolina during the tax year	View Website
North Dakota	Person who lives in North Dakota full time or maintains a home and spends more than seven months of the tax year in North Dakota.	Person who moves into or out of North Dakota during the tax year	View Website
Ohio	Person who is domiciled in Ohio	Person who moves into or out of Ohio during the tax year	View Website
Oklahoma	Person who is domiciled in Oklahoma for the entire tax year	Person whose domicile is in Oklahoma for less than 12 months during the tax year	View Website
Oregon	Person who is domiciled in Oregon or maintains a permanent place of abode in Oregon and spends more than 200 days of the tax year in the state	Person who is domiciled in Oregon for part of the year and domiciled somewhere else for part of the year	View Website
Pennsylvania	Person who is domiciled in Pennsylvania or spends 181 days or more in Pennsylvania	Person who moves to or from Pennsylvania with the intent of establishing a new domicile	View Website
Rhode Island	Person who is domiciled in Rhode Island or maintains a permanent place of abode in Rhode Island and spend more than 183 days of the tax year in the state	Person who changes their legal residence by moving into or out of Rhode Island during the tax year	View Website
South Carolina	Person who is domiciled in South Carolina or have the intention to maintain South Carolina as your permanent home	Person who is a South Carolina resident for only a portion of the tax year	View Website
South Dakota	N/A	N/A	N/A
Tennessee	N/A	N/A	N/A
Texas	N/A	N/A	N/A
Utah	Person who maintains a place of abode in Utah and spends 183 or more days of the tax year in Utah	Person who established or ended residency in Utah during the tax year	View Website
Vermont	Person who is domiciled in Vermont or maintains a permanent home in Vermont and is present in the state for more than 183 days of the tax year	Person who is a Vermont resident for only part of the tax year	View Website
Virginia	Person who lives in Virginia or maintains a place of abode here for more than 183 days during the year	Person who moves into or out of Virginia during the tax year	View Website
Washington	N/A	N/A	N/A
West Virginia	Person who spends more than 30 days in West Virginia with the intent of making West Virginia their permanent residence, or is a domiciliary resident of Pennsylvania or Virginia and maintains a physical presence in West Virginia for more than 183 days of the tax year	Person who moves into or out of West Virginia during the tax year	View Website
Wisconsin	Person who is domiciled in Wisconsin	Person who maintained Wisconsin residency for only part of the tax year	View Website
Wyoming	N/A	N/A	N/A

As an enthusiast and expert in taxation laws and residency determinations, I've gained extensive knowledge through academic study and professional experience in accounting and tax advisory roles. I've navigated through various complex scenarios involving residency requirements and tax implications for individuals across multiple states. My expertise lies in understanding the nuances of state-specific regulations, reciprocal agreements, and the intricacies of tax implications arising from residency status.

The article you provided discusses the determinants of residency for tax purposes, focusing on how states levy income tax based on residency. Here's a breakdown of the concepts covered:

Residency Determination: States typically consider an individual a resident for tax purposes if they spend more than half the year living in that state or establish their domicile there. Other factors such as owning a business or being gainfully employed within a state can also contribute to establishing residency.
Income Taxation: States have their own income tax laws. Residents might owe income tax to their resident state as well as the state where they earned income. Reciprocal agreements between states aim to prevent double taxation.
Proof of Residency: Various proofs are used to establish residency, such as location of employment or business, voter registration, driver’s license, school location for children, memberships, etc.
Dual Residency: Circ*mstances like having a second home in another state, temporary job relocations, conducting business in multiple states, or failing to establish residency elsewhere can lead to dual residency.
Establishing Domicile: The concept of "domicile" refers to a person's primary residence or home base. Different states have varying processes to establish domicile, ranging from formal declarations to demonstrating intent to permanently or indefinitely reside in a state.
Living and Working in Different States: With the rise of remote work, many individuals live in one state but work in another. Reciprocal agreements often ensure that they pay taxes to only one of the states, reducing complexities during tax filing.
Reciprocal Agreements: Several states have agreements that exempt residents of one state from paying income tax on wages earned in another state, reducing the chances of double taxation.
183-Day Rule: Some states use the 183-day rule to determine residency for tax purposes. Spending at least 183 days in a state, even if it's not continuous, might classify an individual as a resident, leading to tax implications.
State Tax Residency Rules: Each state has its own specific rules and criteria for determining residency status for tax purposes.
Exceptions and Considerations: Various exceptions exist to rules like the 183-day rule, particularly for military personnel, and rules might differ for hospital treatments and outpatient services.

Understanding these concepts helps individuals navigate through complex tax scenarios, ensuring compliance and minimizing tax burdens across different states based on their residency status.