How to Establish Residency in Another State
Do You Need to Establish Residency in a Different US State?
Tax Benefits of Living in Different US States
Because every state has its own tax policies, you may want to take advantage of certain financial benefits available in another US state through establishing residency there.
For example, for lower personal taxes, business taxes, or to eliminate state tax altogether, you may want to claim residency in a state other than your own. You might alternatively wish to incorporate your business in a state having no state income tax.
In addition, you may choose to seek residency in a different state for the purpose of securing in-state tuition at a university or college that you would be unable to attend otherwise, because of the expense of out-of-state tuition and fees.
Establishing Residency for in-State Tuition
You may be interested in paying lower, in-state college fees rather than higher, out-of-state tuition.
In this case, check with the college or university you plan to attend and determine their specific requirements for state residency. These must be followed exactly for you to reap their benefits.
Some schools require proof that you have lived in the surrounding local community for at least two years prior to even applying to the college or university. Check your chosen school's website or call its Registrar's Office in order to make sure that you understand these types of residency requirements. On handy alternative is to enroll in and complete online classes while you decide on a move and for a short time after moving, if you are waiting for time requirements of residency to be fulfilled.
Refrain from taking advantage of in-state residency status for college in two US states at once, because this will create a problem. A student may claim residency for in-state tuition and fees in only one state at a time. If a student is found to be double registered for residency status in two states, cost privileges will end and a fine or prosecution for fraud may result. Further, this double residency may raise a red flag for voter fraud.
However, if you are in the US military, many universities and colleges will offer you nonresident (out-of-state) tuition waivers. This benefit is often extended to dependent relatives living with you as well. This lowers the cost of an education for the entire family at once.
Higher Education Facilities in States in Yellow Provide Lower Costs to Neighboring States in Yellow
How to Establish Residency in Another State
Establishing residency in a new state can be performed generally in the same manner in all of the 50 US states. However, you need to check any specific state and the particular part of the state that interests you for more details, which include the length of time one must live in that state in order to qualify legally as a state resident. Be sure to examine a state's specifications for making actual residency complete. Some US states require that you live in the location for only six months, while others require a full year to establish residency.
You will need an actual street address in your new state, and not a P.O. box or a private mail box (PMB) address, which is often listed as only a street address. The US Postal Service can determine fraudulent residencies in this way and it can cost you at least a hefty fine.
You may not claim residency in two different US states at the same time, because this could lead to multiple voting in federal elections, which is a crime. Even if you own homes in two or more states, you must choose one as your primary residence.
Steps to Establish Legal Residency in Another US State
- Locate a place to live in the new state. Find an apartment or purchase a home if you can.
- Spend substantial time in the new state during vacations and holidays.
Maintain social and business relations in the new state.
Have at least one bank account in the new state.
Establish a living address with the U.S. Postal Service by going to the nearest post office and filing a change of address form.
Have your important documents transferred to your new address (insurance, memberships, licenses, etc.).
You will then need to find a job, pay taxes, and file tax returns in the US state in which you seek residency.
Obtain a driver's license and car registration in your new US state, or apply for a non-driver's state ID card if you do not drive.
Register to vote in your new state.
If you have professional licenses, have them transferred to your new state. Do this by contacting the governing board of your occupation in the new state (nurses, physicians, social workers, attorneys, etc.). Temporary licensing can often be granted immediately while you are waiting for the permanent license.
Official College Guide to Residency
- Guide to State Residency
Complete guide offered by CollegeBoard.com
Which States Offer Which Tax Credits?
Different states offer different kinds of tax credits for businesses, which may include breaks for job creation, research and development, and/or investment.
Changing State Residency After Retirement
If you're planning your retirement and thinking about moving, you may want to consider the tax burden you'll take on in different states. Of course, state taxes are important to everyone, but retirees must take extra care since their income may be fixed.
What brought you to this article?
Are you considering a change of residency and, if so, why?
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
Questions & Answers
Is it possible that we can move to another state as green card holders? How about people with immigrant visas?
Yes, a green card holder living in one US state can move to another state, but is required to live in the new state least three (3) months before becoming eligible to apply for US citizenship. They must also report their new address to USCIS within ten days.
If you have an immigrant visa status, then you must also report every change of address within ten days.
See this important link for which form to use in either of the above cases:Helpful 2
I recently moved to Arizona, but want to keep my doctor in Nevada on my Medicare account. Is there a way to do this?
First, go ahead and directly ask your current doctor if this will work!
The US government website Medicare.gov says that you use any doctor, supplier, hospital or other health-related facilities that are enrolled in Medicare and is accepting new Medicare patients.
This sounds like you can keep your doctor. However, notify your Medicare plan provider(s) of your move and new address and ask them if you can keep your doctor.
I hope you can continue to see the same physician and avoid transferring your medical records to another office! If and when you need to choose another doctor, be aware that many US physicians seem to be removing themselves from working with Medicare - in Ohio, seniors are having difficulty finding doctors who are accepting seniors as patients.Helpful 5
What do I do to establish residency since I’m a nomad living outside of the country?
Contact the consulate or embassy office of your native country and ask for help for immigrating to America. Depending on your country of origin, the process could be straightforward, or very long and complex.Helpful 4
How many days do I need to live in Florida before I can be considered a legal resident?
For tax purposes, you need to show that you spend more than half the year (183 days) every year in Florida. For in-state college tuition purposes, you must prove with legal documents (like a driver's license or state ID card) that you have a real street address in Florida for at least 12 months preceding the first day of classes in the specific term you want to attend college in Florida.Helpful 3
What if you are terminally ill and want to establish residency in a state that allows physician assisted dying?(e.g. Washington Vermont, Oregon).
"Death with Dignity" is unfortunately becoming a Big Business in America. The drug to end life, usually Seconal in 2018, can cost up to $5,000 or more on top of the physician's fees. Some powdered forms cost only $500. Be careful what you purchase and from whom. Make sure you understand how it will be administered.
If you are terminally ill and especially if you have six months or less to live (a standard hospice requirement), then nothing legal stops you from moving to a state that allows physician-facilitated suicide. Discuss this with your doctor, clergy, and family before doing so.
The same proof of address as required for other benefits of moving to those states will hold: Examples are a driver's license in that state or a utility bill or lease with your address and signature on it.Helpful 2