Residency Tax Calculator 2025

Determine your state tax residency status, calculate part-year resident obligations, and understand multi-state tax implications. Professional guidance for complex residency situations and domicile changes

State Tax Residency Analysis

👤 Personal Information

Your total annual income for 2025
Your federal tax filing status

🏠 State Residence Information

State where you currently live
Number of days physically present in current state

🏡 Domicile Determination Factors

These factors help determine your tax domicile beyond physical presence

Primary Residence Indicators

Legal and Financial Ties

Social and Professional Ties

💼 Multi-State Work Considerations

Residency Analysis Results

Understanding State Tax Residency 2025

State Residency Rules and Requirements

State tax residency determines which states can tax your income and how much you owe. Unlike federal taxes, state residency rules vary significantly and can result in complex multi-state filing requirements.

📍 Full-Year Resident

You're considered a full-year resident if your domicile is in the state for the entire tax year, regardless of where you physically spend your time.

  • Taxed on worldwide income by the resident state
  • Must file resident return in domicile state
  • May qualify for credits for taxes paid to other states

⏱️ Part-Year Resident

You're a part-year resident if you moved into or out of a state during the tax year, changing your domicile.

  • Taxed on income earned while a resident
  • Taxed on income from sources within the state
  • Must file part-year resident returns in both states

🏢 Non-Resident

You're a non-resident if your domicile is outside the state but you have income sourced from within the state.

  • Taxed only on income sourced from the state
  • Must file non-resident return if income exceeds thresholds
  • May claim reciprocity exemptions in some states

Domicile vs. Residence: Key Differences

🏠 Domicile

Your domicile is your permanent home - the place you intend to return to and remain indefinitely.

  • Legal Definition: Fixed permanent home and principal establishment
  • Intent: Must have intent to remain permanently
  • One at a Time: You can only have one domicile
  • Presumption: Once established, domicile continues until changed

📅 Residence

Residence is simply where you live or stay for a period of time, which may be temporary.

  • Physical Presence: Based on where you actually spend time
  • Temporary: Can be temporary or for specific purposes
  • Multiple Residences: You can have multiple residences
  • Duration Tests: Often subject to day-count tests

Common Residency Tests by State

🗓️ Day Count Tests

New York: 184 days or more creates presumption of residency
California: Temporary absence doesn't change domicile
Florida: No state income tax, but establishment of domicile important for other states

🏠 Domicile Factors

  • Home Ownership: Owning vs. renting property
  • Family Ties: Location of spouse, children, parents
  • Business Connections: Location of business interests, employment
  • Personal Connections: Doctors, lawyers, accountants, clubs
  • Civic Engagement: Voting registration, jury service
  • Financial Ties: Bank accounts, safe deposit boxes
  • Legal Documents: Will, trusts, power of attorney

Part-Year Resident Calculations

Income Allocation Methods

📅 Time-Based Allocation

Income is allocated based on the portion of the year you were a resident.

Example: If you moved to a new state on July 1st, 50% of your annual income would typically be allocated to each state (assuming even distribution).
💰 Source-Based Allocation

Income is allocated based on where it was actually earned.

Example: Salary earned before the move goes to the old state, salary earned after goes to the new state, regardless of when received.

Multi-State Tax Credits and Relief

🤝 Reciprocity Agreements

Some states have reciprocity agreements that prevent double taxation:

Common Reciprocity States:
  • DC, Maryland, Virginia (partial)
  • Illinois and Iowa, Kentucky, Michigan, Wisconsin
  • Indiana and Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin
  • Pennsylvania and Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia

💳 Tax Credits for Other State Taxes

Most states provide credits for taxes paid to other states to prevent double taxation:

  • Resident Credit: Credit for taxes paid to other states on income
  • Limitations: Credit usually limited to the lesser of tax paid or tax that would be owed
  • Timing: Credit typically available in the year tax was paid

Special Situations and Considerations

🎓 Students

Students generally maintain domicile in their home state while attending school, but:

  • Intent to remain after graduation may change domicile
  • Graduate students and post-docs often establish new domicile
  • Working while in school may create tax obligations

🪖 Military Personnel

Special rules apply to military personnel and their families:

  • Military pay generally taxed by state of legal residence
  • Spouses may maintain original state residency
  • PCS moves don't automatically change domicile

🏖️ Retirees

Retirees often have flexibility in choosing tax domicile:

  • Consider state taxation of retirement income
  • Some states don't tax Social Security or pensions
  • Property taxes and estate taxes also important

Residency Planning Strategies

📋 Documentation

  • Keep detailed records of days spent in each state
  • Maintain evidence of domicile intent
  • Document timing of domicile changes
  • Save receipts showing location during travel

⏰ Timing

  • Consider timing of domicile changes around large income events
  • Plan moves early or late in the year for simpler allocations
  • Be aware of day-count tests and plan accordingly
  • Consider estimated tax payment timing

🏠 Establishing New Domicile

  • Change voter registration promptly
  • Obtain new state driver's license
  • Open local bank accounts
  • Register vehicles in new state
  • Update wills and other legal documents

Using This Calculator

This calculator helps you determine your likely residency status and estimate tax obligations:

  • Basic Information: Enter your income and filing status
  • State Details: Specify states and time spent in each
  • Domicile Factors: Check factors that indicate your permanent home
  • Multi-State Work: Include details about working across state lines
  • Results: Review residency determination and estimated tax obligations

⚠️ Important Note

State residency determinations can be complex and fact-specific. This calculator provides estimates and guidance, but you should consult with a tax professional for your specific situation, especially if you have significant income or complex multi-state situations.

Related State Tax Calculators

State Tax Rate Comparison

Compare income tax rates across all 50 states to find the most tax-efficient location for your situation and income level.

Remote Work Tax Calculator

Determine state tax obligations when working remotely across state lines with complex multi-state employment scenarios.

Multi-State Tax Comparison

Advanced tool for comparing tax obligations across multiple states with consideration for reciprocity agreements and credits.

Frequently Asked Questions

You need to file as a part-year resident if you changed your domicile during the tax year by moving to a new state with the intent to make it your permanent home. This typically involves filing returns in both your old and new states.

You'll typically need to file a resident return in your home state and a non-resident return in your work state. However, reciprocity agreements between some states may exempt you from filing in the work state. Your home state will usually provide a credit for taxes paid to the work state.

Legally, you can only have one domicile at a time. However, some states may claim you as a resident based on different criteria (days present, domicile factors, etc.). This can lead to disputes that require careful documentation and potentially professional assistance to resolve.

To change domicile, you must physically move to the new state and demonstrate intent to make it your permanent home. This includes getting a new driver's license, registering to vote, changing bank accounts, and taking other steps to establish ties to the new state while severing ties to the old state.

Keep detailed records of days spent in each state, including travel receipts, hotel bills, and calendars. Document your domicile establishment steps like driver's license changes, voter registration, and bank account openings. Maintain evidence of your intent to establish permanent residence in your new state.