Domicile vs Residency: Understanding the Key Tax Distinction

Definitions: Domicile vs Residency

What is Domicile?

Domicile is your permanent, legal home—the place you consider your true home and intend to return to whenever you're away. It's determined by your intent, not just physical presence. Key characteristics:

• You can only have one domicile at a time
• It remains your domicile until you establish a new one
• Requires both physical presence and intent to remain
• Changing domicile requires affirmative action and documentation

What is Residency?

Residency is where you currently live or have a significant presence. Unlike domicile, you can be a resident of multiple places simultaneously. Types include:

• Domiciliary resident: Where your domicile is located
• Statutory resident: Based on days present (often 183+ days)
• Temporary resident: Short-term presence for work or other reasons

Tax Implications

Establishing Florida Domicile

To make Florida your legal domicile, you must demonstrate intent through concrete actions:

1. File a Declaration of Domicile: Under Florida Statutes §222.17, file with your county clerk
2. Get a Florida driver's license: Surrender your previous state license
3. Register to vote: Cancel previous registration and register in Florida
4. Register vehicles: All vehicles should be Florida-titled and registered
5. Update official documents: Passport, estate documents, professional licenses
6. Establish financial ties: Bank accounts, credit cards with Florida address

How States Determine Your Domicile

If your former state challenges your Florida domicile, they'll examine factors like:

Strong Evidence of Florida Domicile

• Florida Declaration of Domicile on file
• Florida driver's license (and no other state license)
• Florida voter registration
• Florida vehicle registrations
• Florida bank accounts as primary accounts
• Will and estate documents naming Florida
• Professional licenses transferred to Florida

Factors That Weaken Your Claim

• Maintaining a home in your former state
• Spouse or children remaining in former state
• Active business operations in former state
• Social club memberships, religious affiliations elsewhere
• Using professionals (doctors, lawyers) in former state
• Spending more time in former state than Florida

Common Scenarios

Travel Nurse

Maria is domiciled in Florida but works 13-week assignments across the country. She's temporarily present in various states but her domicile remains Florida. She pays state income tax only to states where she physically works (as a non-resident), and Florida doesn't tax her income.

Snowbird

Robert spends winters in Florida (6 months) and summers in New York (6 months). If domiciled in Florida, New York could still claim him as a statutory resident if he exceeds 183 days there. He needs to carefully track days to avoid double taxation.

Digital Nomad

Aisha works remotely while traveling internationally. With Florida domicile, she has no state income tax. Her domicile remains Florida even while abroad because she intends to return and maintains her Florida ties.

Changing Your Domicile

To change domicile from another state to Florida:

1. Choose a specific date: This is your "domicile change date"
2. Establish physical presence: Be in Florida on or near this date
3. Take immediate action: File Declaration of Domicile, get license, register to vote
4. Sever former state ties: Close accounts, cancel registrations, update addresses
5. Document everything: Keep records of all changes for potential audits

Next Steps

1. Learn about Florida residency benefits
2. Understand the 183-day rule
3. Guide to filing Declaration of Domicile