Reduce taxes by becoming a Florida resident

Florida is one of nine states in the country with zero state income tax; residents of New York, Pennsylvania and Massachusetts incur significant state income taxes and state death taxes. If you are reading this article, you are either a permanent resident of Florida or a visitor.

Many visitors like it here so much they decide to move here permanently. And, as an added benefit, they no longer have to pay state taxes in their former state. Unfortunately, some states, such as New York, don’t like losing the tax revenue and may try to continue to collect state taxes unless you can prove you are truly domiciled in Florida AND you are no longer a resident of your former state.

You can be a resident of more than one state for tax purposes. In order to become domiciled in Florida, you must intend to make it your permanent home. For instance, you should be registered to vote and drive in Florida. Florida residents typically have their social security income sent to their Florida bank account, and their main possessions, such as jewelry and family photos, are in their Florida home.

Permanent Florida residents typically update their out-of-state wills and trusts to reflect that they are now Florida residents, and many times they become members of a Florida church or synagogue. Moreover, most Florida residents make funeral arrangements in their home state of Florida.

However, even if you make Florida your new domicile, many states like New York will require you to pay taxes in your old state if you were present in your old state for more than 183 days in a calendar year. So it’s important to keep accurate logs documenting your whereabouts so you can prove to your former state that you weren’t present there more than half of the year.


Keith Singer

Keith Singer, a well-known financial advisor in Florida, is both a CERTIFIED FINANCIAL PLANNER™ (CFP®) practitioner and a licensed Florida attorney.

Ready to Take The Next Step?

For more information about any of the products and services listed here, schedule a meeting today or register to attend a seminar.

Or give us a call at 561.998.9985