State Tax Obligations After Moving Abroad
State Taxes Don’t Automatically End When You Move Abroad
Many expats assume leaving the country ends state tax obligations. That is not always true.
Some states aggressively audit former residents.
High-Risk States
States known for strict residency enforcement include:
- California
- New York
- New Jersey
- Virginia
Simply maintaining a mailing address or driver’s license may sustain tax ties.
Domicile vs Residency
Domicile is your permanent home, even if you are temporarily abroad. Statutory residency rules may also apply.
Failing to sever ties properly can result in dual taxation.
How to Properly Break Residency
Steps may include:
- Establishing foreign residency
- Closing state bank accounts
- Changing voter registration
- Selling or renting property properly
Professional planning is critical before departure.
FAQ
If I live abroad full time, do I still owe state taxes?
Possibly, depending on your former state’s laws.
How do I break California residency?
You must sever domicile and demonstrate permanent relocation.
Can I be taxed by both a state and a foreign country?
Yes, if residency is not properly addressed.
