Changing State of Residence
Details the income tax impact on changing state of residency and the need to plan carefully to comply with states’ intricate rules to minimize chance of residency audits
Individuals often change their state of residence and they do so for many reasons, not the least of which is often to minimize state income taxation. A recent report from the Tax Foundation indicates that the states experiencing the largest net inflows of taxpayers during the period from 2020 to 2021, based on returns filed with the IRS during that period, were states that had the lowest top marginal state income tax rates. Military obligations, college tuition, employment opportunities, health and weather can also play into the decision to move from one state to another. For many, taxes can be just an afterthought (albeit, an important afterthought) in the residency change decision process.1
Please note: The complete publication, including important information and disclosures, can be downloaded via the link below.
Browse additional articles available from UBS Advanced Planning on topics of interest to ultra high net worth clients and their families.
Get in touch
Together, we can help you pursue what’s important
Are you a client?
