Can You Be a Resident in Florida and New York? Understanding Dual Residency
Should you make Florida your permanent home or do you want to keep New York as your primary residence and snow-bird for part of the year?
A significant number of our clients have been drawn to Florida, enticed by its beautiful sunshine, warm beaches, laid-back lifestyle, and notably, the benefit of reduced tax obligations.
But, a big question we here from New Yorkers is on the concept of dual-residency.
As always, we encourage you to seek professional legal advice to discuss the pros and cons of taxation, legal rights, and wealth building and maintenance.
With Florida’s enticing absence of a state income tax and New York’s incredible city life, the idea of holding residency in both states is appealing.
And we think making the move from New York to Florida is a terrific idea with tons of benefits.
We understand completely; having lived in New York, Chicago, Seattle, and New Orleans, we recognize the need to maintain a connection with the beautiful cities we’ve called home.
Yet, navigating the complexities of dual residency requires understanding state laws, tax obligations, and the tricky steps to determine the best place to call home.
This article explores the basic concepts of being a resident in both Florida and New York, outlining the considerations for those contemplating this dual status.
Can I be a resident in both New York and Florida?
Yes, you can establish dual residency in both Florida and New York, but for tax purposes, where you spend over 183 days annually matters significantly due to the “183-Day Rule.”
If you’re a resident in New York for more than 183 days, you’ll be subject to state income taxes there, despite Florida not having a state income tax.
If you are approaching being in Florida anywhere close to 180 days, you may want to decrease your stay in New York to under 183 days to avoid potential state income tax.
Successfully managing dual residency requires meticulous planning to avoid double taxation and to comply with each state’s residency and tax laws.
You ARE a New York resident if you (income tax status):
- New York is your permanent home (domicile).
- Plan to return to New York after being away from Florida
- Have a place in New York you maintain ALL YEAR that you can live in and;
- You spend 184 days or more in New York during the year, regardless of where your permanent home is.
You are NOT a New York resident (you’re a nonresident) if you:
- Do not consider New York your permanent home.
- Spend less than 184 days in New York during the year.
Understanding Residency vs Domicile (it’s a little confusing)
Residency refers to the places where a person lives, while domicile is their permanent home where they plan to return.
Consider it this way: we own a home in Florida, and when we vacation, we always come back to Florida, our permanent residence (domicile).
Moving your primary residence to Florida, which doesn’t have a state income tax, can lower your taxes compared to living in a higher-tax state like New York.
When we moved from Chicago to Florida, we made sure Florida was our domicile for taxable purposes.
You can have multiple homes but only one official residence for taxes, voting, and legal obligations.
I only want to be a resident to Florida (easy guide)
Florida is attractive for its absence of state income tax.
To officially become a Florida resident, you must show clear intent to live there as your main home, which includes several actions beyond just buying property.
To show clear residency intent, you must:
- Spend more than 183 days in Florida annually, to satisfy the so-called “183-Day Rule.“
- Acquiring a Florida driver’s license and registering vehicles in the state.
- Registering to vote in Florida and voting
- Claiming homestead exemption on Florida property, signaling it as your primary residence.
What if my domicile is in Florida, but I keep a home in New York?
Best of both worlds? Well, you may want to think this through before you make the move.
New York implements stringent regulations on residency. They want their money!!!
New York taxes individuals based on domicile or physical presence (spending more than 183 days in the state).
So, even if you make Florida your domicile, spending more than the 183-day threshold in New York subjects you to state income tax as a resident.
Our tip: If you aren’t working in New York and aren’t required to be there more than 182 days, make sure you limit your stay to under 183 days in New York.
Make sure you know how to PROVE your residency in Florida
Florida has no income tax, while New York taxes residents on worldwide income.
This is one of the best reasons to move to Florida and make it your primary residence.
Dual residents must prove they really live in Florida to avoid New York’s taxes, which can be difficult due to audits and scrutiny.
So what do I do to avoid New York/Double taxation?
To mitigate the risk of double taxation, individuals should:
- Keep detailed records to ensure they don’t stay in New York for more than 183 days.
- Have strong connections to Florida, like a permanent home and local community and professional relationships. Think doctors, accountants, etc.
- Financial records can help to show where you are spending money if you are using debit and credit cards.
- Keep records of tolls, plane trips, doorbell camera footage, and more.
Legal Considerations and Asset Protection
Beyond taxes, Florida offers robust asset protection laws, making it an attractive residency choice for those seeking to shield their assets.
Establishing Florida residency can provide considerable advantages, including:
- Protection of homestead properties from creditors.
- Favorable laws regarding tenants by the entirety, offering spousal protection against individual creditors.
Steps to Establish Florida Residency
Transitioning to Florida residency involves a series of deliberate actions:
- Filing a Florida Declaration of Domicile.
- Engaging in community life, including voter registration, local club memberships, and utilizing state services.
- Transferring professional licenses and affiliations to Florida, further anchoring one’s life to the state.
Scenarios to help you (Florida vs New York Residency)
We have experienced a variety of situations with our clients, and we thought highlighting a few would be helpful.
In the following scenarios, we’ve changed the names of clients to help you understand their situations and what things they needed to consider.
Scenario 1: The Traveling Nurse from New York
Alexandra, a traveling nurse based in New York City, has spent years working in beautiful Florida to escape the cold, winter New York weather. She loves her social life in New York, so maintains a condo there and flies back and forth.
Recently, she was offered a long-term contract in Miami, Florida, with the possibility of turning it into a permanent position. How exciting!
Alexandra is really thinking about the “no state income tax” benefit of Florida.
Her friends think she’s crazy, but we are picking up what she’s putting down.
She’s considering making Florida her permanent home but isn’t sure how to proceed, especially considering her current ties to New York, including a condo she owns.
We suggest Alexandra thinks about:
- Tax Benefits: Florida has no state income tax, allowing her to save more money from her nursing salary.
- Property Ownership: Having a condo in New York might affect her tax residency if she spends too much time in New York. She may want to think about renting her place out.
- Profession: A permanent job in Florida indicates a career shift towards living there. This would really help in case of an audit.
Should she make the move? Well, here is the money she would save in state income taxes.
| Income | NY Tax Owed | Savings by Choosing Florida |
|---|---|---|
| $50,000 | $2,585.50 | $2,585.50 |
| $65,000 | $3,410.50 | $3,410.50 |
| $80,000 | $4,235.50 | $4,235.50 |
| $100,000 | $5,432.00 | $5,432.00 |
| $125,000 | $6,932.00 | $6,932.00 |
| $150,000 | $8,432.00 | $8,432.00 |
Action plan
Alexandra may want to start thinking about renting her New York condo and moving to Florida.
She then considers getting a Florida driver’s license, registers to vote there, and lives here for more than 183 days a year to officially become a Florida resident.
Scenario 2: The Semi-Retired Technical Engineer Consultant
Jasmine, a semi-retired technical engineer consultant, has income sources in both New York and Florida.
Yeah, this one could get tricky. We’ve had a lot of clients in this situation.
With homes in both states, she loves the flexibility of consulting (woohoo gig economy) across the tech industry, but faces the challenge of choosing a state for her permanent domicile for tax benefits and lifestyle.
We suggest Jasmine thinks about:
- Income in Both States: Get a tax attorney/accountant immediately. If her primary work is in New York, she’ll most likely be paying income taxes there.
- Remote Work Advantage: She works remotely and can choose her domicile state. She owns her own business and Florida ranks 4th for favorable business taxes and New York ranks 49th.
- Establishing Residency: Florida is probably her best option for domicile and residency, and she needs to document over 183 days spent there, switch her driver’s license, voter registration, and primary bank accounts to Florida, and consider her property status in New York.
Action Plan:
- A tax expert can assist Jasmine with taxes in two states and reduce her taxes.
- She needs to move her main legal and social connections to Florida to help prove she lives there.
- She needs to decide what to do with her New York property—keep it, rent it out, or sell it—to support her Florida residency.
Frequently Asked Questions
Do I need to file a New York State tax return if I move to Florida?
Yes, if you were a New York State resident for part of the year, you need to file a part-year resident tax return for the time you lived in New York. This is important during your “relocation year”.
If I work remotely for a New York company but live in Florida, do I owe New York income tax?
If your main office is in New York, you might still have to pay New York State income tax for income earned while working remotely, unless your employer has set up a real office at your remote work location.
If I split my time between New York and Florida, how do I avoid being taxed twice on the same income?
New York provides tax credits for taxes paid to other states, but since Florida has no income tax, you may not owe New York tax on that income if you meet specific criteria. Check with a tax professional.
If I buy a house in Florida but still own property in New York, am I automatically a Florida resident for tax purposes?
Owning property in both states and spending over 183 days in New York could make you a New York State tax resident.
If I live in New York City but work in Florida, how does that affect my residency status?
If you live in New York City but work in another state, you remain a New York resident for tax purposes and may owe state and city taxes, with potential credits for taxes paid to the other state.
Conclusion
There is a lot to think about when deciding where to live: Florida or New York.
We hope this guide helped you at least consider the possibility of calling Florida home.
Having the flexibility to choose where you live is a beautiful life, and we hope whatever you choose, you live on your own terms to chase happiness—we did.
Living in a big city with high taxes does not necessarily equate to a poor quality of life. Two of our children reside in Midwestern states known for higher taxation, yet they love their lives there.
And they love visiting us in the winter too 🙂
Our wish for you is living a life true to yourself.
