Moving from New Jersey to Florida: Complete Tax Residency Guide

Complete guide to leaving New Jersey for Florida residency. Learn about NJ's exit procedures, 10.75% top tax rate, residency audits, and how to properly establish Florida domicile.

Key Takeaways

New Jersey's top income tax rate is 10.75%—among the highest in the US
NJ uses a 183-day statutory residency test plus domicile determination
New Jersey shares data with NY and actively audits high-income departures
Proper documentation is essential—NJ Treasury is aggressive with audits

Overview: New Jersey's Tax Burden

New Jersey has the third-highest top marginal income tax rate in the nation at 10.75%. Combined with high property taxes and cost of living, many New Jersey residents are relocating to Florida. However, the NJ Division of Taxation actively reviews departing residents.

$6,000 - $35,000+ Annual savings depending on income level

New Jersey Tax Rates

Taxable Income	Tax Rate
$0 - $20,000	1.4%
$20,001 - $35,000	1.75%
$35,001 - $40,000	3.5%
$40,001 - $75,000	5.525%
$75,001 - $500,000	6.37%
$500,001 - $1,000,000	8.97%
Over $1,000,000	10.75%

Savings Examples

$100,000 income: Save ~$4,500/year
$150,000 income: Save ~$7,000/year
$250,000 income: Save ~$12,500/year
$500,000 income: Save ~$32,000/year

New Jersey Residency Rules

New Jersey determines residency through two tests:

1. Domicile Test

Your domicile is where you have your permanent home and intend to return. NJ examines:

Where you maintain your primary residence
Where your family lives
Location of your business activities
Where you vote and hold licenses
Where you file federal returns from

2. Statutory Residency (183-Day Rule)

You're a statutory resident if you:

Maintain a permanent place of abode in NJ, AND
Spend more than 183 days in New Jersey

Dual Taxation Risk: You can be taxed as a New Jersey resident even if domiciled in Florida if you spend 183+ days in NJ while maintaining a residence there. Track your days carefully.

Properly Exiting New Jersey

Step 1: Establish Florida Domicile

Get a Florida residential address
File Florida Declaration of Domicile
Get Florida driver's license (surrender NJ license)
Register to vote in Florida
Register vehicles in Florida

Step 2: Sever New Jersey Ties

Sell or rent NJ property: If keeping, lease to unrelated party (12+ months)
Close NJ bank accounts: Or change addresses to Florida
Cancel memberships: Gyms, clubs, subscriptions
Transfer professional licenses: To Florida where applicable
Update employer: Ensure W-2 shows Florida address

Step 3: File Proper Tax Returns

Move year: File NJ-1040NR (part-year/non-resident) reporting only NJ income
Future years: File non-resident return only if you have NJ-source income
Federal: File with Florida address

New Jersey Residency Audits

NJ Treasury has an active audit program targeting:

High-income taxpayers who claim to have moved
Residents claiming part-year status
Former residents with ongoing NJ income sources

Information Sharing

New Jersey shares data with neighboring states, particularly New York. If you have ties to both states, expect scrutiny.

Audit Defense Documentation

Keep these records for at least 7 years:

Florida Declaration of Domicile
Florida driver's license and voter registration
Moving company receipts
Utility cancellation records
Property sale or lease documents
Calendar tracking days in each state

Special Situations

NJ Property Owners

Keeping a NJ home is a major audit risk. If you must keep property:

Rent to an unrelated party at fair market value
Sign a 12+ month lease
Have no personal use rights to the property
Document that this is purely an investment property

NYC Commuters

Many NJ residents work in NYC. If you establish Florida residency:

NJ cannot tax your income (you're not a resident)
NYC can only tax income for work physically performed there
Remote work from Florida is not NYC-taxable

NJ Business Owners

If you own a NJ-based business:

NJ may continue taxing income sourced from NJ operations
Consider restructuring or relocating the business
S-corp/partnership income may have NJ-source components

Recommended Timeline

Before move: Secure Florida address, begin updating accounts
Move date: Establish clear date of domicile change
Within 30 days: Florida DL, voter registration, vehicle registration
Within 90 days: Complete all address updates, cancel NJ ties
Tax season: File NJ part-year return for move year

Get Started

Your Tax Base provides everything you need to establish Florida residency:

Real Florida residential address
Mail forwarding services
Declaration of Domicile assistance
Ongoing documentation support

Start Your Florida Residency Calculate Your Savings

Official Sources & Citations

Verified references for accuracy

1
New Jersey Division of Taxation
Official NJ tax information and residency guidance
Accessed: 2026-01-27
2
NJ Income Tax Rates
New Jersey income tax rate schedule
Accessed: 2026-01-27

Frequently Asked Questions

Quick answers to common questions

Savings depend on income. At $100,000 income, save ~$4,500/year. At $150,000, save ~$7,000/year. At $500,000, save ~$32,000/year. New Jersey's top rate of 10.75% is among the highest in the nation.

savingshow muchnj to florida

New Jersey can tax you as a statutory resident if you maintain a permanent place of abode in NJ AND spend more than 183 days there. Even with Florida domicile, spending too much time in NJ creates tax liability.

183 day rulenj daysstatutory resident

You can, but it significantly increases audit risk. If you keep NJ property, rent it to an unrelated party at market rate with a 12+ month lease. Do not retain personal use rights. A vacant NJ home weakens your Florida domicile claim.

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Yes, NJ Treasury actively audits high-income taxpayers who claim to have moved. They share data with New York and examine financial ties, property ownership, and time spent in each state. Proper documentation is essential.

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