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
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The information on this page and in the attached document is provided for informational and educational purposes only. It should be used solely for the purposes of discussion with your UBS Financial Advisor and your independent consideration. UBS does not intend this to be fiduciary or best interest investment advice or a recommendation that you take a particular course of action.
No tax or legal advice.
UBS Financial Services Inc., its affiliates and its employees do not provide tax or legal advice. You should consult with your personal tax and/or legal advisors regarding your particular situation.
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