Your federal tax obligations follow your citizenship. Your state tax obligations follow something harder to pin down: your domicile. Plenty of Americans move to Mexico or Portugal assuming they have left their state's tax system behind, only to learn years later that the state never agreed. If your state still considers you domiciled, it can tax your worldwide income, and unlike the IRS, it may not offer a foreign earned income exclusion or a credit for foreign taxes. This is worth sorting out before you leave.
Domicile vs. residence
Domicile is your true, fixed, permanent home: the place you intend to return to after being away. You can have several residences but only one domicile at a time. And under the general rule, you keep your old domicile until you establish a new one.
That last point is the trap. Leaving a state is not enough. To change domicile, you generally need to show both:
- that you abandoned your old domicile, with no intent to return to it, and
- that you established a new one somewhere else, with physical presence and intent to stay permanently or indefinitely.
Someone who moves abroad "for a few years to see how it goes," keeps their house, and expects to come back may never have changed domicile at all, at least in the eyes of their state.
Many states also have a second test, statutory residence, which taxes people who keep a home in the state and spend a set number of days there, regardless of domicile.
States that are hard to leave
States without an income tax don't have much reason to chase former residents. States with one sometimes do. A few examples from official guidance, described generally:
California
California's Franchise Tax Board looks at where you have your "closest connections," weighing factors such as where your spouse and children live, your principal residence, and where you hold your driver's license, vehicle registration, voter registration, bank accounts, and professional licenses. It notes that the strength of your ties matters more than how many there are. California has a safe harbor for domiciliaries who leave the state under an employment-related contract for at least 546 consecutive days, with limits on return visits and exceptions for large amounts of investment income. Retirees moving abroad without a work contract do not fit that safe harbor and must show a genuine change of domicile.
New York
New York says your domicile stays the same until you show, by clear and convincing evidence, that you have abandoned it. The state notes that simply filing a certificate of domicile or registering to vote elsewhere is not enough. Separately, you can be a statutory resident if you maintain a permanent place of abode in the state for substantially all of the year and spend 184 days or more there.
Virginia
Virginia rulings state that a domiciliary who works outside the state or country and has not abandoned their Virginia domicile continues to be subject to Virginia tax. Time away does not change that on its own. Virginia looks for actual abandonment plus a new domicile, and has said that renewing a Virginia driver's license is a strong indicator of intent to keep Virginia domicile.
South Carolina
The South Carolina Department of Revenue's domicile guide states that a person who moves abroad for work is still considered domiciled in South Carolina unless they become a permanent resident of the foreign country, and that you remain subject to South Carolina tax until you sever connections and clearly intend to live abroad permanently. Its factors include property and homestead status, voter and vehicle registration, driver's license, bank accounts, and where your family and affiliations are.
Other states have their own rules. If your state has an income tax, look for its residency or domicile guidance before you move, or have a professional review it.
The factors that matter
No single factor decides domicile, and actions count more than declarations. States commonly look at:
| Factor | What signals you left | What signals you stayed |
|---|---|---|
| Home | Sold the house or rented it at arm's length; residence permit and lease abroad | Kept the family home available to you; homestead exemption still claimed |
| Driver's license and car | Surrendered or not renewed; vehicles sold or re-registered | Renewed license; cars registered and insured in the state |
| Voter registration | Registered elsewhere, or voting only in federal races from abroad | Voting in state and local races |
| Family | Spouse and dependents moved with you | Spouse or children remain in the state |
| Money and mail | Statements and tax returns use your new address | Bank, brokerage, and tax mail sent to your old home |
| Affiliations | Memberships and professional licenses moved or ended | Active memberships, church roles, and licenses kept |
| Time | Few days in the state | Long stays, especially with a home available |
Keep records of the move: the lease or deed abroad, your residence permit, shipping receipts, and letters closing accounts. If the state ever asks, you will need to show what you did and when.
The no-income-tax state strategy
Some people establish domicile in a state without an income tax before moving abroad, so that their last US domicile is one that does not tax them. As of 2026, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not tax wage income. Washington does tax certain capital gains for high earners, and New Hampshire stopped taxing interest and dividends starting with 2025.
This can work, but only if the move is real. Spending a weekend in Florida to get a mailbox and a license, while your house, car, and spouse stay in Virginia, invites an audit you will probably lose. People who do this successfully generally:
- Actually live there for a meaningful period before going abroad.
- Get a new driver's license and register vehicles there, or sell them.
- Register to vote there.
- Cut ties with the old state: sell or lease out the home, move accounts, and update addresses.
- File a final part-year resident return in the old state.
Your US mailing address matters here too. A mail-forwarding address in a no-tax state can support a domicile story but cannot create one. Our guide to mail, phone, and a US address covers the options.
Voting from abroad and state taxes
Americans abroad generally vote absentee using their last US address. Many worry that this keeps them tax-resident. According to the Federal Voting Assistance Program, voting for federal candidates will not affect your federal or state tax liability. Voting in state or local races may, depending on your state's laws. If you want to keep voting while keeping your state tax exposure low, federal-only ballots are worth considering. See voting from abroad for how to register.
Treaties and credits usually don't help at the state level
Federal tax treaties don't bind every state, and the IRS notes that not all states honor them. States also don't all follow the federal Foreign Earned Income Exclusion, and many don't give credits for taxes paid to foreign countries. That means a state that still considers you domiciled could tax income that is already taxed abroad. See US taxes abroad for the federal side.
When to get professional help
Domicile is a question of facts and intent, and states decide it case by case. Get advice from a US expat-tax professional familiar with your state if you are keeping a home there, have a spouse or children staying behind, have significant investment income or a business, are leaving a high-tax state such as California or New York, or plan to set up domicile in a no-tax state on the way out. The cost of advice before you go is small compared to years of back taxes and interest later.
Check before you act
Immigration rules, income minimums, fees, and tax law change, sometimes with little notice. This guide is general information, not legal, immigration, or tax advice.
- Confirm current requirements with the country's official immigration agency or the consulate that will handle your application.
- For US tax questions, use IRS.gov and a tax professional who works with Americans abroad.
- Get advice from a licensed local attorney before signing leases, buying property, or submitting residency paperwork.
Common questions
Do I still owe state taxes if I move abroad?
You might. States generally tax people who are domiciled there, and moving abroad does not automatically end your domicile. If your state still considers you domiciled, it may tax your worldwide income even while you live overseas.
Which states are hardest to leave for tax purposes?
States with an income tax that look closely at domicile, such as California, New York, Virginia, and South Carolina, have published guidance showing they expect clear evidence that you abandoned the state. Rules differ, so check your own state's guidance.
Does voting from abroad make me a state tax resident?
Voting only in federal elections from abroad does not affect your state tax liability, according to the Federal Voting Assistance Program. Voting in state or local races may affect it depending on state law.
Should I establish residency in a no-income-tax state before moving abroad?
Some people do, but it only works if the move is real: living there, getting a license, registering to vote, and cutting ties with the old state. A quick paper move is likely to fail an audit. Talk to a tax professional first.
Sources
- Guidelines for Determining Resident Status (Publication 1031, 2025) — California Franchise Tax Board. ftb.ca.gov/forms/2025/2025-1031-publication.pdf
- Nonresident and part-year resident FAQs — New York State Department of Taxation and Finance. tax.ny.gov/pit/file/nonresident-faqs.htm
- Ruling of the Tax Commissioner, Document 15-225 — Virginia Tax. tax.virginia.gov/laws-rules-decisions/rulings-tax-commissioner/15-225
- Domicile Guide — South Carolina Department of Revenue. dor.sc.gov/resources-site/lawandpolicy/Documents/Domicile%20Guide%202021.pdf
- Absentee Voting: Myth vs. Reality — Federal Voting Assistance Program. fvap.gov/uploads/FVAP/Outreach-Materials/FVAP_MythReality.pdf
- Tax treaties — IRS. irs.gov/individuals/international-taxpayers/tax-treaties
Last reviewed October 17, 2026. General information only, not legal, immigration, or tax advice. Requirements change, so confirm with official sources before you apply. See our disclaimer.
