As a 30+ year member of the AICPA, Nancy has experienced all facets of finance, including tax, auditing, payroll, plan benefits, and small business accounting. Her résumé includes years at KPMG International and McDonald’s Corporation. She now runs her own accounting business, serving several small clients in industries ranging from law and education to the arts.
Jennifer Agee has been editing financial education since 2001, including publications focused on technical analysis, stock and options trading, investing, and personal finance.
How do states determine residency for tax purposes?
States generally look at where youâre domiciled (your permanent home) and whether you meet residency tests. That can include how many days you spend in the state, whether you own or rent a home there, and practical ties such as a driverâs license, voter registration, or where your primary residence is located. No single factor controls â states look at the full picture.
Do you have to file taxes in two states if you split your time?
Possibly. If youâre a resident of one state but earn income or meet residency thresholds in another, you may need to file more than one return. Typically, your home state taxes all your income, while the other state taxes income earned there. Credits are often available to prevent double taxation, but the paperwork still matters.
What should snowbirds and remote workers watch out for?
Day counts and documentation. Spending more than 183 days in a high-tax state, working remotely from a different state, or maintaining strong ties in two places can all trigger tax obligations. Planning ahead â tracking days, keeping records, and understanding filing requirements â can help avoid surprises.
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Spending part of your time in warmer climes? Know the tax implications.
Ah, the empty nest! Itâs time to move where you want to move and do what you want to do! But if you think you can simply pick up and live in the new state of your choice with no tax ramifications, think again. First, do some research so you know what youâre getting into.
Key Points
You are taxed in your state of residency.
You can be taxed in two states if you earn income in both or in just your vacation state.
You can be taxed in two states if you live in your vacation home for more than 183 days during the year.
What is residency? What happens if I move to a different state during the year?
A state considers you to be a resident when you move there permanently by:
Buying a house
Moving your property there
Getting a state driverâs license
Registering your car and getting license plates
Registering to vote
Once youâre in a new state, you file a tax return in that state (unless you move to one of the few states without any income tax). For the year you move, you will also file a tax return in your old state for the time you spent there.
(As of the 2026 tax year, states without income tax include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Note that just because a state assesses no state income tax doesnât necessarily mean youâre getting a better deal. States need revenue, so theyâll typically find another way to get it: Property tax, gas tax, sales tax, and so on.)
What if I move to another country?
If you move internationally and own no property in the U.S., you wonât have to file state taxes. But as a U.S. citizen, you still have to file a U.S. federal tax return. There are certain exclusions and credits that may apply if you earn income in your foreign location.
Where do I file taxes if I own two homes or rent a home in another state?
Even if youâre retired, you may need to file a tax return in your state of residency to report your investment income, Social Security income, and so on, depending on the requirements and thresholds in your state.
Most states consider you a full-time resident if youâre there for 183 days or more during the taxable year.
But what if you live in one state for part of the year, and spend the rest in another state? Most states consider you a full-time resident if youâre there for 183 days or more during the taxable year. So track the days you spend in each state to see if you might have to file two returns.
Certain states have âreciprocal agreementsâ so that returns donât have to be filed in both states. Even if you do file returns in two states, the state where you actually have residency will often give you a credit for taxes paid to another state.
What if I earn other income or am still working when I move to (or vacation in) a different state?
If you live 100% of the time in a new state and you work 100% remotely in that state, your employer will typically consider your income as earned in your new state. You will therefore be taxed only in the state where you live and work.
The taxes you pay influence how you spend, earn, and invest money.
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But if you earn any type of income in another state during the year, youâll need to file a non-resident tax return for that state. For example, you might have rental income from a property you own and rent on Airbnb (ABNB) or the VRBO platform from Expedia (EXPE). Or you might have income from a small business you inherited or own with a partner. Maybe you receive wages from a part-time job you take when you are living your dream life in a temporary location.
Thereâs even a chance that your two-week trip to another state to âwork remotelyâ could be taxable in that state. Make sure you do some research before you plan a working vacation. Some states allow a certain number of work days before they are taxable; other states tax you the minute you answer an email in their state.
Note that if you earn income of any kind, youâll have to report that income to your state of residency, even if you earned it out of state.
What if Iâm out of my home state on Tax Day?
Some âsnowbirdsâ are away from their home state through the winter and might not return before April 15. Make sure you plan ahead; filing an extension often comes at a cost in interest and possibly penalties. Make sure your mail is forwarded to your temporary location, or even better, pull up the documents online. Bring other important info along when you travel (such as documentation of real estate taxes you paid or charitable contributions you made before your trip).
What if my kids are still in college when I move?
If you are one of the lucky parents whose child attends an in-state university, what happens if you move to a different state? Or what if you move to the state where your child already goes to an out-of-state school?
Make sure you research the in-state requirements for each university. Some grant your child in-state tuition through their entire four years of undergraduate college (but not grad school) if the parent lived in-state when they applied. But if you move too soon for a reason other than a new job in the area, the university may make you pay out-of-state tuition for a certain number of years. Other universities consider the studentâs location (as long as they have a job and have gotten a permanent driverâs license in that state) for in-state residency. Each state and university has different rules.
