Florida Residency Guide for Digital Nomads

Overview: Why Florida is the Ideal Home Base for Digital Nomads

As a digital nomad, you have the freedom to work from anywhere in the world. But that freedom comes with unique tax complexities. Unlike traditional employees tied to a single location, you may face taxation claims from multiple jurisdictions—your home state, states you visit, and even foreign countries where you spend extended time.

Establishing Florida residency solves most of these problems. Florida has no state income tax, no estate tax, and straightforward residency requirements that don't require physical presence minimums. This makes Florida the preferred domicile for thousands of American digital nomads, remote workers, and location-independent professionals.

This comprehensive guide covers everything you need to know about Florida residency as a digital nomad: state tax implications of remote work, physical presence rules, multi-state nexus concerns, why Florida is ideal, mail forwarding and banking needs, and international considerations.

Remote Work State Tax Implications

The fundamental tax challenge for digital nomads is citizenship-based taxation at the federal level and residence-based taxation at the state level. Unlike most countries that tax based on where you live, the United States taxes citizens on worldwide income regardless of location. State taxation adds another layer of complexity.

How States Determine Your Tax Liability

States use several methods to claim you as a tax resident:

1. Domicile: The state you consider your permanent home, where you intend to return
2. Statutory Residency: States with day-counting rules (like the 183-day rule) that can make you a resident regardless of intent
3. Source-Based Taxation: Some states tax income earned from sources within that state, even for non-residents

The Problem for Nomads Without a Tax Home

If you leave a high-tax state like California or New York without establishing domicile elsewhere, your former state may continue to claim you as a resident. The IRS also has special rules about "tax home" status that affect your eligibility for certain deductions and exclusions.

According to the IRS, your tax home is the entire city or general area where your main place of business or employment is located, regardless of where you maintain your family home. If you have no regular or main place of business because of the nature of your work, your tax home may be where you regularly live. If you don't fit into either category, you may be considered an itinerant whose tax home is wherever you work—which creates complications for travel expense deductions and the Foreign Earned Income Exclusion.

Reference: IRS Publication 463 - Tax Home

State-by-State Tax Risks

High-tax states are thorough about claiming remote workers as residents:

• California (up to 13.3%): The Franchise Tax Board (FTB) uses a comprehensive "closest connections" test. California thoroughly reviews former residents' documentation, which is why strong Florida documentation is so valuable.
• New York (up to 10.9%): Uses the 183-day rule combined with "permanent place of abode" analysis. If you maintain an apartment, even a family member's home you could use, plus spend 183+ days in NY, you're a statutory resident.
• New Jersey (up to 10.75%): Has become increasingly thorough in auditing remote workers who claim to have moved but maintain ties to NJ.
• Massachusetts: Controversially attempted to tax remote workers who worked for MA-based companies during COVID, regardless of where they were located.

Physical Presence Rules: What You Need to Know

The 183-Day Rule Explained

Many states use a 183-day threshold to determine statutory residency. If you spend 183 or more days in a state, that state may claim you as a resident for tax purposes—even if you've established domicile elsewhere.

Critical points about day counting:

• Any part of a day counts: In New York, even a brief layover at JFK where you leave the airport counts as a full day
• All days count: Weekends, holidays, sick days, and days spent at conferences—not just workdays
• Documentation matters: Keep detailed records of travel (flights, hotel receipts, credit card statements)
• Combined with "abode" requirements: New York requires 183 days PLUS maintaining a "permanent place of abode"—having either factor alone doesn't trigger statutory residency

Learn more about the 183-day rule

Florida Has No Day Requirement

Unlike high-tax states, Florida has no minimum physical presence requirement for maintaining residency. Once you establish Florida domicile, you remain a Florida resident as long as you:

• Maintain your intent to make Florida your permanent home
• Don't establish domicile in another state
• Don't trigger statutory residency in another state through excessive days spent there

This makes Florida ideal for digital nomads who may spend extended periods abroad or traveling to different states for client meetings or conferences.

Tracking Your Days

As a digital nomad, you should maintain a detailed calendar showing your location each day. This is essential for:

• Proving you didn't exceed 183 days in any state that uses day-counting
• Qualifying for the Foreign Earned Income Exclusion (330 days outside the US)
• Defending your Florida domicile in case of an audit

Recommended tracking methods:

1. Google Timeline: Automatically tracks your location history
2. Spreadsheet: Manual log with date, location, and evidence
3. Credit/debit card statements: Show where you made purchases
4. Flight records: Keep all boarding passes and airline confirmation emails

Multi-State Nexus Concerns for Digital Nomads

What is Nexus?

Nexus is a legal term meaning a sufficient connection to a state that allows that state to tax you. For individuals, nexus typically arises from:

• Physical presence (domicile, statutory residency)
• Economic activity (earning income from sources within the state)
• Maintaining property or business operations in the state

Source-Based Taxation Risks

Even as a Florida resident, you may owe taxes to other states based on income sourced there. Common scenarios:

• Consulting for clients in California: If you perform work while physically present in California, those days' income may be taxed by California—even as a Florida resident
• Remote work for a NY employer: New York's "convenience of the employer" doctrine historically taxed remote workers if their employer was NY-based and remote work was for the employee's convenience, not necessity (modified post-COVID but still complex)
• Speaking at conferences: Income earned while physically present in a state may be taxable there

Minimizing Multi-State Exposure

As a Florida-domiciled digital nomad:

1. Track where you work: Know exactly how many days you spend working in each state
2. Understand de minimis thresholds: Some states don't require filing if you work there fewer than a certain number of days (varies by state)
3. Avoid extended stays: Limit time in high-tax states to stay below their radar
4. Document your Florida connections: Strong Florida ties help rebut claims from other states

The "Convenience of the Employer" Doctrine

Several states—most notably New York—have historically applied a rule where remote workers are taxed as if they worked at the employer's location unless remote work was required by the employer (not just convenient for the employee).

Post-pandemic, many states have modified these rules, but they remain a concern for digital nomads working remotely for employers in states like:

• New York
• Pennsylvania
• Delaware
• Nebraska
• Connecticut (modified)

If you work remotely for an employer in one of these states, consult a tax professional to understand your specific obligations.

Why Florida is Ideal for Digital Nomads

1. Zero State Income Tax

Florida is one of nine states with no personal income tax. This applies to all types of income:

• W-2 wages from remote employment
• 1099 contractor income
• Business profits from LLCs, S-Corps, and sole proprietorships
• Investment income (dividends, capital gains, interest)
• Rental income from properties anywhere in the world
• Crypto gains

For a digital nomad earning $150,000 annually, switching from California residency to Florida residency could save approximately $12,000-$15,000 per year in state income taxes.

2. No Minimum Residency Requirement

Florida doesn't require you to spend any specific number of days in the state. You can establish Florida as your domicile and then travel full-time—domestically or internationally—without jeopardizing your residency status.

3. Strong Legal Framework

Florida has well-established procedures for proving domicile:

• Declaration of Domicile: A legal document filed with the county clerk declaring your intent to make Florida your permanent home (Florida Statutes Section 222.17)
• Clear DMV requirements: Straightforward process for obtaining a Florida driver's license
• Voter registration: Easy online registration as a Florida voter

4. No Estate or Inheritance Tax

Florida has no estate tax, inheritance tax, or gift tax at the state level. For digital nomads building wealth, this provides additional long-term tax benefits.

5. Asset Protection Laws

Florida offers some of the nation's strongest asset protection:

• Unlimited homestead protection: Your primary residence is protected from most creditors (Florida Constitution, Article X, Section 4)
• Tenancy by the entireties: Special protection for married couples
• Strong retirement account protection: IRAs and 401(k)s are protected under state law

6. Nomad-Friendly Mail Services

Florida has a mature ecosystem of residential mail forwarding services designed specifically for travelers. Unlike PO Boxes or commercial mail receiving agencies (CMRAs), these services provide legitimate residential addresses that work for:

• Florida driver's license applications
• Bank account addresses
• Vehicle registration
• Voter registration
• IRS correspondence

Mail Forwarding and Banking Needs

Why Address Type Matters

As a digital nomad, your Florida address is crucial. Not all addresses are equal:

Address Type	DMV Accepted?	Banks Accept?	IRS Valid?	Domicile Proof?
PO Box	No	No	Limited	Weak
UPS Store/Commercial CMRA	Sometimes	Often No	Limited	Weak
Friend/Family Address	Yes	Yes	Yes	Moderate
Residential Mail Service	Yes	Yes	Yes	Strong
Own/Rented Property	Yes	Yes	Yes	Strongest

Residential Address Services

Your Tax Base provides Florida residential addresses at RV and mobile home communities—legitimate residential addresses that are accepted by the Florida DMV, banks, and all government agencies. This is ideal for digital nomads who don't want to own or rent property.

What you get:

• Legal street address (not a mail drop or PO Box)
• Lease documentation for proof of residency
• Mail forwarding anywhere in the world
• Digital mail scanning (view your mail online)
• Package receiving and forwarding

Banking Considerations

After establishing your Florida address, update your banking information:

1. Update your address: Change your address with all banks and financial institutions
2. Get new debit/credit cards: Request cards sent to your Florida address
3. Consider online-first banks: Banks like Schwab, Fidelity, and Capital One are nomad-friendly with no foreign transaction fees
4. International ATM access: Ensure your bank reimburses foreign ATM fees

USPS Form 1583

To authorize a mail forwarding service to receive mail on your behalf, you must complete USPS Form 1583. This form requires notarization but can be completed through online notary services like Proof.com. Your Tax Base handles Form 1583 processing as part of the onboarding process.

International Remote Work Considerations

Federal Tax Obligations

As a U.S. citizen, you're required to file federal income taxes regardless of where you live or work. However, you may qualify for significant tax benefits:

Foreign Earned Income Exclusion (FEIE)

If you meet either the Physical Presence Test (330 full days outside the US in a 12-month period) or the Bona Fide Residence Test (tax resident of a foreign country for a full calendar year), you can exclude up to $126,500 (2025) of foreign earned income from federal taxes.

Reference: IRS - Foreign Earned Income Exclusion

Foreign Tax Credit (FTC)

If you pay income taxes to a foreign country, you may be able to claim a credit against your US tax liability, avoiding double taxation.

Florida + FEIE = Maximum Tax Savings

For digital nomads who qualify for FEIE, Florida domicile provides the ultimate tax optimization:

• Federal taxes: First $126,500 excluded via FEIE
• State taxes: $0 (Florida has no income tax)
• Net state tax savings: 0-13.3% depending on your previous state

Example: A digital nomad earning $150,000 who qualifies for FEIE and establishes Florida residency would pay federal taxes only on $23,500 ($150,000 - $126,500), and zero state taxes.

Foreign Residency and Tax Home

To maintain FEIE eligibility, you need a tax home in a foreign country. The IRS may deny FEIE if your tax home is in the United States. This is separate from your domicile (which is Florida for state tax purposes).

Florida domicile + foreign tax home = optimal structure for digital nomads working abroad.

FBAR and FATCA Reporting

If you have foreign bank accounts or financial assets, you may have additional reporting requirements:

• FBAR (FinCEN Form 114): Required if your foreign accounts exceed $10,000 at any point during the year
• FATCA (Form 8938): Required if foreign financial assets exceed $50,000-$200,000 (thresholds vary based on filing status and residency)

Digital Nomad Visas

Many countries now offer specific visas for remote workers:

• Portugal Digital Nomad Visa
• Spain Digital Nomad Visa
• Croatia Digital Nomad Visa
• Thailand Long-Term Resident Visa
• UAE Remote Work Visa (Dubai)
• Costa Rica Digital Nomad Visa

Your Florida domicile remains your US home while you reside abroad on these visas.

How to Establish Florida Residency as a Digital Nomad

Step 1: Obtain a Florida Residential Address

You need a legitimate residential address—not a PO Box or commercial mail drop. Options include:

• Purchase or rent property
• Use a family member's address (with their permission)
• Use a residential address service designed for travelers

Step 2: File Declaration of Domicile

File a Declaration of Domicile with your Florida county clerk's office. This legal document declares your intent to make Florida your permanent home under Florida Statutes Section 222.17.

Step 3: Obtain Florida Driver's License

Visit a Florida DMV within 30 days of establishing residency. You'll need:

• Proof of identity (passport, birth certificate, or current license)
• Proof of Social Security number
• Two proofs of Florida residential address

Step 4: Register to Vote

Register as a Florida voter online or at the DMV. This demonstrates civic ties to Florida.

Step 5: Update Your Records

Change your address with:

• IRS (Form 8822)
• Social Security Administration
• Employer/clients
• Banks and investment accounts
• Insurance companies
• Professional licenses

Step 6: Terminate Your Previous State Residency

File any required change of residency forms with your former state. Document the date you left and surrendered your old driver's license.

Maintaining Florida Residency While Traveling

Once established, maintain your Florida residency by:

• Keep Florida as your primary address: All legal and financial documents should use your Florida address
• Avoid excessive time in other states: Don't exceed 183 days in any state with day-counting rules
• Maintain Florida connections: Bank accounts, vehicle registration, professional memberships
• File Florida-based tax returns: Even though there's no income tax, maintaining Florida on federal returns matters
• Vote in Florida: Exercise your voting rights as a Florida resident

Next Steps

Ready to establish your Florida residency? Here's what to do:

1. Calculate your potential tax savings
2. Learn how Your Tax Base helps
3. Start your application