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How do I change my domicile for tax purposes?

Writer Sophia Bowman

To evidence the intent necessary to change domicile, where possible, an individual should consider taking the following steps:

  1. File a “Declaration of Domicile” in the county of residence.
  2. Update the address at which bank statements and other correspondence are received.
  3. Relocate any safe deposit boxes.

Can you change your domicile?

After the age of 16, you can change your domicile. The basic criteria for changing your domicile will typically include as an absolute minimum: Leaving the country in which you are domiciled and settle in another country. Provide strong evidence that you intend to live in your new location permanently or indefinitely.

Can I have domicile of two states?

It can be made only in one state and obtaining more than one domicile certificate is an offence. This certificate is required as a proof of residence to avail domicile or resident quotas. So, in your case you can get a domicile certificate for either of the states but not for both.

What does it mean to change domicile?

This means the change of a principle abode or residence.

When do you need to change your domicile?

Taking these steps to establish a new domicile is even more imperative when moving from a high tax state like California or New York to a lower tax state. Just spending 183 days in your vacation home in a low tax state will not automatically qualify you to establish a new domicile.

Can a domicile in another state save you taxes?

Being domiciled in a state for tax purposes requires some planning, but can save a great deal of taxes. Each state has mechanisms to protect its residents from another state’s income tax.

Can a domicile be moved out of California?

The California Franchise Tax Board is not stupid; they will look into whether you have actually moved out of the state. Moving your primary residence is not a simple as just spending 183 or so days in a low-tax state. Proving you have left a state will require you to demonstrate that you have truly established a new domicile elsewhere.

Where does a domicile have to be in order to file taxes?

“Home is where the heart is.” Or at least that’s what they say. When it comes to state income taxes and other legal matters (from family law to asset protection), though, home is where your domicile is… whether your heart – or your body – is there or not.