How to Meet Florida Residency Requirements for Your Taxes

A man filing his taxes in Florida.

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Florida has no income tax. To take advantage of this benefit, it’s important to meet the Sunshine State’s residency requirements. You need to update your driver’s license, voter registration and spend most of the year in Florida to establish residency. As an added step, you may also want to talk to a financial advisor about your finances and long-term tax filings.

Establishing residency in Florida requires specific actions to show that you intend to make it your permanent home. These steps include getting a Florida driver’s license, registering to vote and filing a declaration of domicile with the county clerk. Taking these actions confirms your status as a Florida resident, which is beneficial for tax reasons.

To be recognized as a resident for tax purposes, you need to establish your domicile in Florida. Domicile means the place you plan to permanently live. While you may have several residences, you can only have one domicile.

To set up your domicile in Florida, you should consider buying or renting a home, moving your bank accounts and changing your mailing address. Spending over half the year in Florida also helps strengthen your residency claim. Together, these steps show your dedication to living in Florida as your main home.

Establishing state residency in Florida can offer numerous benefits, including tax advantages and access to in-state tuition rates. However, achieving residency requires meeting specific qualifications and providing the necessary documentation.

This guide outlines five key steps to take and considerations for those looking to make Florida their official home:

Reside in Florida for 183 days of the year. To establish residency, you must physically reside in Florida. This means spending a significant portion of your time in the state, typically more than six months per year. This physical presence demonstrates your commitment to making Florida your primary home.
File a declaration of domicile. Filing a declaration of domicile is a formal sworn statement of your intent to make Florida your permanent home. This document is filed with the Clerk of the Circuit Court in the county where you reside. It serves as legal evidence of your residency intentions.
Get a Florida driver’s license and vehicle registration. Obtaining a Florida driver’s license and registering your vehicle in the state are important steps. These actions not only comply with state laws but also reinforce your residency claim. You must obtain vehicle registration within 10 days of establishing residency; you have 30 days to get a Florida driver’s license.
Register to vote in Florida. While not required, registering to vote in Florida can be another important step in establishing residency. It shows your intent to participate in the civic life of the state.
Maintain a Florida address. Being able to provide proof of your Florida address is essential. This can include utility bills, a lease agreement or a property deed. These documents help verify your physical presence and intent to reside in the state.

A woman researching requirements to establish Florida residency.

Choosing a state of residence for tax purposes is a significant decision that can impact your financial well-being. Each state has its own tax laws, which can affect your income, property and overall cost of living.

Here are some key considerations to keep in mind when deciding on a state residence for taxes:

Evaluate state income tax rates. Consider the state income tax rates, as they can vary widely. Some states, like Florida, have no state income tax, which can be beneficial for high earners. Conversely, states like California and New York have higher income tax rates, which might significantly impact your take-home pay.
Consider property taxes. Property taxes can be a substantial expense, especially if you own a home. States like New Jersey and Illinois have some of the highest property tax rates in the country. It’s important to research and compare these rates to understand how they will affect your overall tax burden.
Review sales tax rates. Sales tax can add up quickly, especially if you make large purchases. States like Oregon and New Hampshire have no sales tax, which can lead to significant savings. On the other hand, states like Tennessee and Louisiana have higher sales tax rates, which could increase your cost of living.
Understand estate and inheritance taxes. If you are planning for the future, consider states with estate or inheritance taxes. Some states impose these taxes, which can affect the transfer of wealth to your heirs. States like Maryland and New Jersey have both estate and inheritance taxes, while others like Florida have neither.
Assess overall cost of living. The overall cost of living-including housing, utilities and groceries-should be factored into your decision. States with no income tax might have higher costs in other areas, balancing out potential savings. It’s essential to look at the big picture to determine the most financially advantageous state for you.

A woman reviewing a tax strategy for her portfolio.

Establishing residency in Florida can be beneficial for tax purposes. To do this, you need to show that you intend to make Florida your permanent home. You can demonstrate this by getting a Florida driver’s license, registering to vote and filing a declaration of domicile. You should also spend the majority of the year living in Florida, change your mailing address, and move your financial and legal affairs to the state, such as opening a local bank account and working with a Florida attorney for estate planning.

A financial advisor can help optimize your portfolio for taxes. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
SmartAsset’s tax return calculator can help you estimate your next refund or balance.

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