Disclaimer: This article is for educational purposes only and does not constitute tax, legal, or financial advice. New York residency law is complex and fact-specific. Consult a qualified tax professional or attorney before making residency decisions.

Understanding New York's residency laws is critical for tax purposes—it determines whether you owe state taxes on your worldwide income or just what you earn in New York. Whether you live in NY full-time, part of the year, or split your time between states, New York has specific rules that classify your residency status and directly impact your tax bill.

This comprehensive guide explains the different types of residency in New York—resident, non-resident, and part-year resident. We'll cover essential concepts like domicile, permanent place of abode, and the critical 183-day rule, plus provide actionable steps to legally terminate your New York residency.

Understanding New York Residency Classifications

New York classifies taxpayers into three main categories, each with different tax obligations. Knowing where you fall is the first step to managing your state tax liability.

New York State Resident

You are considered a New York State resident if you meet either of these two criteria:

Domicile in New York

Domicile is your permanent home—the place where you intend to return whenever you're away, regardless of where you currently live. You can only have one domicile at a time. If New York is your domicile, the state considers you a resident for tax purposes.

Key factors that establish domicile:

Where you maintain your primary residence
Where your family lives
Where your business interests are located
Where you're registered to vote
Where your driver's license is issued
Where you maintain bank accounts and professional licenses

Statutory Residency

Even if New York is not your domicile, you can still be classified as a statutory resident if you meet both conditions:

Permanent Place of Abode: You maintain a permanent place of abode in New York for more than 10 months of the tax year (starting tax year 2022)
183-Day Rule: You spend more than 183 days in New York during that tax year—any part of a day counts as a full day

Tax implication: As a resident (domiciled or statutory), New York taxes you on your worldwide income—everything you earn, regardless of source or location.

Non-Resident

A non-resident is someone who:

Does not have a domicile in New York, AND
Does not maintain a permanent place of abode in New York for the majority of the tax year

Tax implication: Non-residents are only taxed on New York source income—such as wages earned while physically working in the state, rental income from NY properties, or business income from NY operations.

Part-Year Resident

Part-year residents moved into or out of New York during the tax year. You're taxed as:

A resident for the portion of the year you lived in New York (worldwide income taxed)
A non-resident for the time you lived outside New York (only NY source income taxed)

You'll file Form IT-203 as a part-year resident, reporting income earned both while living in the state and while living elsewhere.

Critical Concepts: Domicile vs. Permanent Place of Abode

What is Domicile?

Your domicile is your true, permanent home—the place you always intend to return to. Even if you spend most of your time elsewhere, your domicile reflects where your life is centered and where you have the strongest personal and financial ties.

Changing Your Domicile

To change your domicile from New York to another state, you must prove two things:

You abandoned your New York domicile (physically moved and severed ties)
You established a new domicile elsewhere (created new ties and intent to stay)

Actions that help prove a domicile change:

Selling or renting out your New York home
Purchasing or leasing a home in your new state
Updating your driver's license and vehicle registration
Registering to vote in your new state
Moving banking and financial accounts to your new address
Spending more time in your new state than in New York
Filing a Declaration of Domicile in your new state

Important: New York aggressively audits domicile changes, especially for high-income earners. Documentation is critical.

What is a Permanent Place of Abode?

A permanent place of abode is a residence suitable for year-round living. This could be a house, apartment, or condo—whether you own or rent it. What matters is that it has basic living necessities:

Sleeping facilities (bedroom)
Cooking capabilities (kitchen)
Bathing facilities (bathroom)

What doesn't qualify:

Seasonal vacation homes used only occasionally
Hotel rooms or temporary lodging
Properties not maintained for personal residential use

If you maintain a permanent place of abode in New York for more than 10 months AND spend 184+ days in the state, you'll be classified as a statutory resident—even if your domicile is elsewhere.

The 183-Day Rule: Every Day Counts

For statutory residency purposes, if you spend more than 183 days in New York during the tax year, you may be considered a resident (if you also maintain a permanent place of abode for >10 months).

How New York Counts Days

Critical rule: Any part of a day you spend in New York counts as a full day. This includes:

Flying into JFK at 11:00 PM (counts as 1 day)
Stopping for a business meeting for 2 hours (counts as 1 day)
Layovers at New York airports (counts as 1 day)
Working remotely from a New York location, even briefly

Day Tracking Best Practices

If you're at risk of statutory residency, maintain detailed records:

Keep a simple day log or calendar
Save flight tickets, hotel receipts, and boarding passes
Document passport stamps for international travel
Keep credit card statements showing transaction locations
Save ride-share receipts showing pickup/dropoff locations

Audit defense: New York can and does audit high-income taxpayers who claim non-residency. Solid documentation is your best defense.

Tax Implications by Residency Status

Residents: Worldwide Income Taxation

If you're classified as a New York resident (domiciled or statutory), the state taxes you on all income, including:

Wages and salaries (regardless of where earned)
Investment income and capital gains
Rental income from properties in any state or country
Business income from any location
Retirement account distributions

You must file a full-year resident tax return and report all worldwide income.

Non-Residents: New York Source Income Only

Non-residents only pay New York taxes on income earned or sourced from New York:

Wages earned in NY: If you physically work in New York, those wages are taxed (even if you live elsewhere)
Rental income: Income from New York rental properties
Business income: Income from a New York-based business or operations
NY investments: Some investment income sourced to New York

You file a non-resident tax return (Form IT-203) reporting only your New York source income.

Part-Year Residents: Hybrid Taxation

Part-year residents pay:

Worldwide income tax for the period you were a NY resident
NY source income tax only for the period you were a non-resident

You file Form IT-203 and allocate income based on your residency periods.

Avoiding Double Taxation

If you pay income taxes to another state on the same income taxable by New York, you may claim a tax credit to avoid double taxation. However, New York's resident credit for foreign taxes is limited—generally only available for Canadian provincial taxes (using Form IT-112-C).

For most other countries, residents must rely on the federal foreign tax credit (Form 1116) and cannot claim an additional New York state credit.

How to Legally Exit New York Residency

Terminating your New York residency requires deliberate action and thorough documentation. New York is aggressive about auditing former residents, especially high-income individuals. Follow these steps carefully:

1. Establish New Residency in Another State

Secure a residential street address in your new state—not a P.O. Box. Options include:

Purchasing a home
Leasing an apartment
Using a residential address service (for nomads and expats)

File a Declaration of Domicile with your new state to formalize your intent to make it your permanent home.

Popular domicile states for former NY residents:

Florida (no state income tax)
Texas (no state income tax)
Nevada (no state income tax)
South Dakota (no state income tax, easy for nomads)

2. Relocate Your Belongings

Physically move your personal possessions out of New York to your new home. Keep:

Moving company receipts
Storage facility contracts (if applicable)
Photos showing your belongings in your new residence

3. Update All IDs and Registrations

Immediately update:

Driver's license (get a new state license within 30 days)
Vehicle registration and title
Voter registration (register in new state, cancel NY registration)
Professional licenses (update address with licensing boards)

4. Transfer Financial Accounts

Update your address with:

Banks and credit unions
Credit card companies
Investment and brokerage accounts
Insurance providers (health, auto, home)
Retirement accounts

5. Notify Your Employer and the IRS

File Form 8822 (Change of Address) with the IRS. Notify your employer to update payroll records with your new address and state tax withholding.

6. Spend More Time in Your New State

The more time you spend in your new state (and the less in New York), the stronger your case. Ideally:

Spend the majority of the year in your new state
Keep NY visits to fewer than 183 days
Track your days carefully with a calendar and travel receipts

7. Sever or Minimize New York Ties

The more you can reduce your connections to New York, the better:

Sell or rent out your New York property (or make it clearly secondary)
Close New York bank accounts or change to new state branches
Transfer professional memberships and affiliations
Update social media profiles with new location

8. Integrate Into Your New Community

Build ties to your new state:

Find local doctors, dentists, and service providers
Join community organizations or religious groups
Open local gym memberships or country club memberships
Attend local events and get involved

9. Keep Meticulous Records

Document every step of your move:

Lease or mortgage documents for new residence
Utility bills in your name at new address
New state driver's license and registration
Bank statements showing activity in new state
Receipts from local businesses in new state
Travel records (flights, hotels, credit card statements)
Day logs showing time spent in each location

10. Prepare for a Potential Audit

New York's Tax Department conducts residency audits years after you've moved. Be prepared to defend your domicile change with comprehensive documentation proving:

You abandoned New York as your permanent home
You established a new permanent home elsewhere
You had genuine intent to make the new state your domicile

Special Cases: Living Abroad and Retaining NY Domicile

Can You Be a NY Resident While Living Abroad?

Yes. Moving abroad does not automatically terminate your New York residency. If you maintain your domicile in New York—meaning you intend to return and maintain significant ties—New York will still tax you as a resident on your worldwide income.

Temporary Nonresident Safe Harbors

New York offers two narrow safe harbors that can treat you as a temporary nonresident if you meet all conditions:

30-Day Rule (Calendar Year)

If you meet all these conditions, you can be treated as a nonresident:

No permanent place of abode in NY at any time during the year
Permanent place of abode outside NY for the entire year
Spend ≤30 days in New York during that year (any part of a day counts)

548-Day Foreign Assignment Rule

In a 548-consecutive-day period:

You're in foreign countries for ≥450 days
You, your spouse, and minor children are in NY ≤90 days total
NY days during the start/end periods don't exceed the pro-rated 90/548 share

Important: These safe harbors do NOT change your domicile—they only confer temporary nonresident status for qualifying periods. Documentation requirements are extensive.

Legal Precedents: Court Cases That Shape NY Residency Law

Matter of Evans v. Tax Appeals Tribunal

This case established that both the physical characteristics of a dwelling and the taxpayer's relationship to it determine whether it qualifies as a permanent place of abode. Simply having access isn't enough—you must show ongoing residential use and intent.

Matter of Barker

The court ruled that even vacation homes can qualify as a permanent place of abode if they're suitable for year-round living and maintained by the taxpayer. The fact that it's used for leisure doesn't exclude it from residency classification.

Matter of Obus

Conversely, the court found that occasional use of a New York property—even with access—did not establish a permanent place of abode. The taxpayer showed no evidence of ongoing residential interest or regular use.

Takeaway: New York courts closely scrutinize both the nature of your dwelling and how you actually use it. Ownership alone doesn't determine residency—intent and use matter.

Tools and Resources for Managing NY Residency

Managing your residency status requires organization, documentation, and proactive planning:

Your Tax Base Residential Address Services: Get a legitimate street address in a tax-friendly state (Florida, Texas, Nevada, South Dakota) with lease documentation and utility setup
Mail Forwarding: Receive your mail wherever you are in the world while maintaining your new state address
Tax Filing Support: Work with CPAs experienced in multi-state and international tax compliance
Day Tracking Tools: Use calendar apps or spreadsheets to log your location each day
Document Storage: Keep digital and physical copies of all residency-related documents

Frequently Asked Questions

Can I have two residences and not be a NY statutory resident?

Yes, as long as you either: (1) don't maintain a permanent place of abode in NY for more than 10 months, or (2) spend 183 days or fewer in New York during the tax year.

Does working remotely for a NY company make me a NY resident?

No. Residency is based on your physical location and ties to the state—not your employer's location. However, if you physically work in New York, those wages are NY source income.

How does New York find out if I moved?

New York cross-references IRS data, state tax returns, property records, DMV records, voter registrations, and more. They actively audit high-income earners who claim to have left.

Can I claim I moved but keep my NY apartment?

Risky. If you maintain a permanent place of abode in NY and spend 184+ days there, you'll be a statutory resident—regardless of your claimed domicile. If you truly moved, rent it out to tenants or make it clearly secondary.

How long after I move can NY audit me?

New York can audit returns for up to 3 years after filing (or longer if they suspect fraud or significant underreporting). Keep records for at least 6 years.

Final Thoughts: Get It Right From the Start

New York's residency laws are complex, and the state is aggressive about collecting taxes from former residents who don't properly document their exit. Whether you're planning to leave New York, split time between states, or live abroad while maintaining ties, understanding these rules is essential.

Key takeaways:

Domicile is based on intent and ties—not just where you spend time
The 183-day rule + permanent place of abode can make you a statutory resident even without NY domicile
Changing domicile requires deliberate action, documentation, and severing NY ties
New York audits aggressively—keep meticulous records
Living abroad doesn't automatically terminate NY residency

If you're ready to establish residency in a tax-friendly state, Your Tax Base can help. We provide residential addresses, lease documentation, mail forwarding, and expert guidance to ensure you meet all legal requirements—and stay audit-ready.

A Simple Guide to New York Residency Laws