How does Minnesota determine residency for tax purposes?

Minnesota uses a two-part test: you're a resident if Minnesota is your domicile (permanent home), OR if you spend at least 183 days in Minnesota during the year (even if domiciled elsewhere). Minnesota examines 26 factors to determine domicile, including: location of your home, where your family lives, driver's license, voter registration, where you work, where your vehicles are registered, where you maintain bank accounts, and more. The Department of Revenue weights all factors together.

What is the Minnesota 183-day rule?

Minnesota's 183-day rule means you can be taxed as a Minnesota resident even if you change your domicile to Florida, as long as you spend 183 or more days in Minnesota during the tax year. A "day" in Minnesota is counted if you are present in the state for any part of the day. This makes it critical to carefully track your days and limit time in Minnesota, especially during your departure year.

How does Minnesota handle the departure year for taxes?

In your departure year, Minnesota requires you to file as a part-year resident. You'll be taxed on all income received while you were a Minnesota resident, plus any Minnesota-source income received after you left. Minnesota may prorate your income based on the number of days you were a resident during the year. The departure date should be clearly documented—this is when you moved your domicile to Florida.

How much can I save by moving from Minnesota to Florida?

Minnesota's top rate of 9.85% is the 4th highest in the nation. For someone earning $150,000, potential state tax savings could be $9,000+ annually. For $300,000, savings could exceed $25,000. For $500,000, savings could reach $49,000+. Florida has no state income tax on wages, business income, investment income, or retirement income.

Does Minnesota tax retirement income?

Yes, Minnesota taxes most retirement income, including 401(k) distributions, IRA withdrawals, and pension income. Social Security benefits are taxed at the federal level and may be partially taxed by Minnesota depending on your income. By moving to Florida, you eliminate state tax on all retirement income. For retirees with significant retirement distributions, this can represent substantial annual savings.

Can Minnesota tax me on income after I become a Florida resident?

Once you establish Florida domicile and spend fewer than 183 days in Minnesota, the state can only tax "Minnesota-source income." This includes: wages for work physically performed in Minnesota, income from Minnesota-based businesses, rental income from Minnesota property, and gains from sale of Minnesota real estate. Your non-Minnesota income would no longer be subject to Minnesota tax.

Does Minnesota have an exit tax?

Minnesota does not have a formal exit tax. However, Minnesota is known for aggressively auditing departing residents, especially high-income individuals. The Department of Revenue may review your return for 3-4 years after departure. Maintaining thorough documentation of your Florida ties and Minnesota tie-severing is essential to survive a potential audit.

What documents should I keep to prove I left Minnesota?

Maintain: Florida driver's license, Florida voter registration, Declaration of Domicile filed in Florida, lease or deed for Florida residence, utility bills in Florida, detailed calendar tracking your days in each state, Florida vehicle registration, updated estate documents executed in Florida, records of Minnesota ties severed with dates, and evidence of Florida social, civic, and professional connections.

Minnesota → Florida Tax Migration

Escape Minnesota's 9.85% Tax Rate

Minnesota has the 4th highest state income tax in the nation. Save $5,000-$49,000+ annually by establishing Florida residency. We help you navigate the domicile change, document your move, and protect yourself from Minnesota's residency audits.

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Your Minnesota Tax Savings

See how much you could save by moving from Minnesota to Florida

Your Annual Income

$150,000

❄️

Minnesota

$10,302/year in state tax

Up to 9.85% marginal rate

🌞

Florida

$0/year in state tax

0% state income tax

YOUR ESTIMATED ANNUAL SAVINGS

$10,302

That's $103,020 over 10 years

*Estimate based on Minnesota 2024 tax brackets. Individual results vary. Consult a tax professional.

How to Leave Minnesota the Right Way

Our 5-step process protects you from state tax audits

Document Your Intent to Leave Minnesota

Establish clear evidence of your intent to make Florida your permanent home. Create a timeline, document your reasons, and prepare for potential scrutiny from the Minnesota Department of Revenue.

Set Up Your Florida Address & Virtual Mailbox

Get a legitimate Florida residential address. Complete USPS Form 1583 with remote notarization. Your mail will be scanned and accessible from anywhere.

Obtain Florida Driver's License & Update Voter Registration

Surrender your Minnesota license and get a Florida license. Register to vote in Florida. These are two of the strongest indicators of domicile change.

Sever Minnesota Ties Systematically

Close Minnesota bank accounts, update professional licenses, move financial advisors, and cancel Minnesota memberships. Document everything for potential audit protection.

File Your Final Minnesota Return & Maintain Florida Ties

File a part-year return for Minnesota for your departure year. Going forward, build Florida ties: register vehicles, update estate documents, and maintain organized records of your Florida activities.

Complete Guide

Florida Residency: Everything You Need to Know

Learn about Florida's tax advantages, residency requirements, and how to establish domicile.

Learn More

Minnesota Exit FAQ

Common questions about leaving Minnesota for Florida

Ready to Leave Minnesota Taxes Behind?

Trade Minnesota's 9.85% top rate for Florida's 0%. We'll help you establish proper residency and protect yourself from residency audits.

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