Florida Residency for Digital Nomads

Tax nexus is a connection to a state that gives it the right to tax you. Common nexus triggers include: maintaining a home in a state, spending significant time there, earning income from clients in a state, or having a business registered there. As a digital nomad, you can inadvertently create nexus in multiple states. By establishing Florida as your domicile (which has no income tax), you reduce your state tax exposure to only states where you create nexus through physical presence or business activity.

The FEIE allows US citizens and residents abroad to exclude up to $126,500 (2024) of foreign earned income from federal taxes. Combined with Florida's 0% state income tax, this creates a powerful tax combination for digital nomads living abroad. You must meet either the Physical Presence Test (330+ days abroad in a 12-month period) or the Bona Fide Residence Test. Florida residency ensures you don't owe state tax on income that exceeds the FEIE limit. Consult a tax professional.

Potentially, yes. You may need to file in any state where you worked for an extended period, earned income from in-state clients, or maintained a home. Florida residents have an advantage because Florida itself never taxes your income. Your filing obligations in other states depend on their specific nexus rules and how much time you spent there. Some states have de minimis rules (e.g., you don't need to file if you worked there fewer than a certain number of days).

Yes. Florida does not require a minimum number of days in-state to maintain residency. The key is demonstrating that Florida is your "permanent home"—the place you intend to return to. Maintain your Florida driver's license, voter registration, vehicle registration (if applicable), Florida bank accounts, and a Florida address. File your federal taxes showing Florida as your state of residence. Our virtual mailbox gives you a stable Florida presence.

US banks typically require a domestic address. Without one, your accounts may be flagged or restricted. A Florida residential address solves this problem—it gives you a stable US address for banking, credit cards, and investment accounts. Many digital nomads also need a US address for PayPal, Stripe, and other payment processors. Your virtual mailbox address works for these purposes.

As a Florida resident freelancer, you don't owe Florida state tax on any income. However, some states may claim the right to tax you on income earned from their state's clients, especially if you physically work in that state. The rules vary by state. Generally, if you perform all your work from Florida (or from abroad), other states cannot tax your freelance income simply because the client is located there. Consult a tax professional for your specific situation.

Savings depend on your current state of residence and income. A digital nomad earning $100,000 from a high-tax state like California (13.3%) could save $7,000-$10,000+ annually. From New York (8.82%), savings could be $6,000-$8,000+. If you also qualify for the FEIE while abroad, your combined federal + state savings can be substantial. Florida residency eliminates one entire layer of taxation.

Getting a Florida driver's license requires an in-person visit. However, the rest of the process (notarization, mailbox setup, address updates) can be done remotely from anywhere. Many digital nomads establish residency during a planned US visit, then maintain it remotely. We recommend timing your visit to coincide with when you're naturally in the US.