California and New York, among a few other states, are known as “sticky states” due to the additional challenges residents may face when leaving.
The tax and legal implications of changing domicile from these states can be significant due to their stringent tax laws.
In general, it’s still possible to be a resident of Texas yet still be considered by another state (e.g., CA/NY) as a “taxable resident.”
It’s important, whenever changing your domicile, to start creating new ties with your new state. In addition, with sticky states in particular, it is also extremely important to break ties with your old state.
For example, when changing your domicile from CA to TX, some such tactics would include:
Filing a Declaration of Domicile with the Clerk of Court in Aransas County (SavvyNomad can assist with this).
Using a high-quality physical address instead of a P.O. Box.
Documenting casual references to your residency, such as emails and texts.
Being employed by a company based in Texas or recognized by your employer as a resident of Texas.
Register to vote in Texas (a supporting factor for domicile, but not determinative on its own; eligibility questions should be directed to Texas election officials).
Secure a Texas driver's license.
If you own property in Texas, ensure you pay the necessary property taxes.
List a Texas address on all official documents.
Employ your Texas address for income tax purposes.
Register your vehicles in Texas.
Update your passport with your Texas address.
Relocate significant personal possessions, like art or jewelry, to Texas (or at least out of your old state).
Apply for a homestead exemption if applicable.
Inform your professional contacts (lawyers, accountants, financial institutions, insurance agents) of your new primary residence.
Switch to a local primary healthcare provider in Texas.
Withdraw from any non-Texas social clubs or memberships.
Consider selling any out-of-state properties.
Alert federal and state agencies, such as Social Security and Medicare, of your address change.
For professionals, verify your qualifications to practice in Texas.
Update your estate planning documents to reflect Texas law.
Adjust insurance policies for any out-of-state properties to reflect non-resident status.
Move your safe deposit box to a bank in Texas.
Choose a local veterinarian in Texas for your pets.
In addition, the year of changing your domicile, you may need to file part-year resident tax returns in both your old and new states. For example, it’s a red flag to change domiciles on January 1st.